Take that, Morgan Stanley Dean Witter!!!
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
12:45 (Dow Jones) John Pitzer, an analyst with Credit Suisse First Boston,
disagrees with Morgan Stanley Dean Witter's opinion that now's the time to
get back into semiconductor capital equipment stocks. In a call to his sales
force, Pitzer said Thursday that on a valuation basis these stock are
"expensive" and the recent sell-off in the semiconductor capital equipment
group does not represent a buying opportunity. Earlier today, MSDW upgraded
Applied Materials (AMAT), Novellus (NVLS), Teradyne (TER), Lam Research
(LRCX), ASM Lithography (ASML) and KLA-Tencor (KLAC). (DLF)
12:34 (Dow Jones) Slowing April traffic growth at Brinker International
(EAT) restaurants suggest to J.P. Morgan's John Ivankoe that "the consumer
spending slowdown that has affected the majority of retailers has finally
begun to impact casual dining as well." The analyst says that given rising
gasoline prices and declining consumer confidence, investors should look for
chains like Brinker's Chili's and Macaroni Grill operations to see "slightly
positive" customer growth near-term. He also says casual-dining
restaurateurs should be able to pass along price increases to offset higher
utility and labor costs. (RLG)
12:25 (Dow Jones) Stock futures are losing steam after strong open. June
Nasdaq weaker and June S&Ps close to unchanged. Floor technical trader says
June S&Ps are bumping up against long-term trendline resistance that comes
in at 1274. A close above there means they're off to the races, but
inability to do so could have them test the gap at 1211-1201. (DMC)
12:21 (Dow Jones) Video game maker 3DO Co. (THDO) has not been able to
execute in a difficult market enviroment, says Gerard Klauer Mattison
analyst Edward Williams, who cut his 2002 view to a loss of 16 cents from
earnings of 6 cents. However, the analyst says he expects 3DO to benefit
form the growing installed base of PlayStation 2 and other game consoles.
3DO is adding 12 cents at $2.72. (DDO)
12:17 (Dow Jones) The key technical for the Nasdaq Composite today is
2139.74. A close below that number is a short-term technical breakdown. The
index remains weak under 2180 long-term resistance. Currently, the Nasdaq
sits at 2151. (SC)
12:12 (Dow Jones) The Chicago Fed Midwest Manufacturing Index fell 0.6% in
March from February to a seasonally adjusted level of 161.7 - the sixth
consecutive monthly decline. March output in the region was 2.9% lower than
a year earlier - the largest drop from a year-earlier period since October
1991. Year-over-year output for the nation as a whole rose 0.4% in March.
(MSD)
12:04 (Dow Jones) Today's European rate cut was a good excuse to continue
the five-month downtrend of EUR/USD. Look for the month-old consolidation to
end with a a move below 0.8700 support, perhaps within the week. That's the
signal for a renewed downtrend likely to bottom in at 0.8422 in early June.
(SC)
11:58 (Dow Jones) Activision's (ATVI) extreme sports category of video games
should continue to be a key revenue driver, says Gerard Klauer Mattison
analyst Edward Williams, as he raised his fiscal 2002 earnings estimate to
80 cents a share from 76 cents and fiscal 2003 view to $1.10 from $1.05.
Noting that Activision could benefit from the introduction of such new game
consoles at Xbox and GameCube, the analyst also upped his 12-month price
target to $38 from $30. Shares up 10% over past two sessions. (DDO)
11:51 (Dow Jones) The euro has now touched below 88 cents vs. dollar, but
has made no clear intent to stay down past this significant level. "Even if
we do get a break down, it might not last," an analyst says, and several
others are likewise expecting a near-term return to sideways trading.
USD/JPY at Y122.70. (JEN)
11:48 (Dow Jones) Bear Stearns left General Electric's (GE) analyst
presentation Wednesday pretty pumped. Analyst John Inch repeated his buy
rating on GE and $70 price target, saying GE's narrowing of 2001 guidance to
the top half of previous range of $1.40 to $1.50 a share suggests that his
$1.47 estimate "is in great shape, with even the prospect of some slight
upside." The risk to earnings are diminishing, said Inch, which is good news
for the stock's near-term upside prospects. The XFL could've used such good
reviews. (CCW)
11:36 (Dow Jones) CIBC World Markets analyst William Schmitt cut his fiscal
2001 earnings estimate on Isle of Capri (ISLE) to 93 cents a share from
$1.07 and his 2002 view to $1.32 from $1.72. He also lowered his six to
12-month price target to $17 from $23. The analyst cited higher depreciation
and lower expectations at several of the riverboat and dockside casino
operator's properties. (DDO)
11:25 (Dow Jones) Deutsche Banc Alex. Brown notes bullish sentiment climbing
toward 50%, while bearish sentiment slips below 40%. Recent improvement in
breadth showing signs of stalling, as well. Not a great combo for stocks.
(TG)
11:13 (Dow Jones) Willamette Industries (WLL) is unlikely to reach a deal in
the short-term with hostile suitor Weyerhaeuser (WY), says CSFB's Mark
Connelly. He expects Weyerhauser's slate of three directors to get elected
to Willamette's board on June 7. But if the slate is not elected,
Weyerhaeuser is likely to discontinue its bid, he says. (JAW)
11:04 (Dow Jones) Merrill's Steve Milunovich makes some changes to sector
weightings within technology. Photonics downgraded to underweight; Internet
upgraded to equal weight; Supply Chain raised to overweight; Software
Applications cut to equal weight; Technical Software dropped to equal
weight; Infrastructure Management Software raised to overweight. (TG)
10:56 (Dow Jones) U.S. chain store sales in April posted their best showing
since January, amid solid seasonal demand for garden equipment and seasonal
clothing. A preliminary tally of 81 major retail chains by the Bank of
Tokyo-Mitsubishi found that chain store sales last month rose a
better-than-expected 3.8% compared to April a year ago. (MSD)
10:50 (Dow Jones) After Thursday's surprise 25 BP cut to 4.50%, Merrill
Lynch chief European investment strategist Michael Hartnett expects next ECB
cut, of another 25 BP, on July 19. Combined with today's BOE ease, ECB cut
creates "very positive" conditions for global equities markets and bank
stocks could pop higher as a result, Hartnett says. (JNP)
10:43 (Dow Jones) The junk market is a "touch better" but very quiet early
on, says a trader. The subdued tone is a bit surprising considering the ECB
rate cut and stock rally, but a slew of deals in the primary market seem to
be the focus right now, he says. Charter Communications (CHTR) is expected
to sell $1B in junk bonds, with others bringing at least another $1B. (RTB)
10:30 (Dow Jones) The momentum deterioration Lehman's Jeff deGraaf has seen
on his S&P model has found its way into Nasdaq. He says there may be a
little more gas left in the tank - particularly in front of FOMC - but the
upside appears limited. "Bottom line, the picture is deteriorating, and
momentum is now beginning to reflect this," he says. (TG)
10:19 (Dow Jones) A majority of chief executive officers responding to the
latest Business Council survey "find credible the forecasts of large U.S.
budget surpluses in future years." (JC)
10:10 (Dow Jones) Stocks solidly higher in the early going - DJIA up 110 at
10976, Nasdaq adds 28 to 2184, and S&P 500 climbs 10 to 1265. Nasdaq 100
improves by 1.7%, as semis, telecoms act well. Positive thoughts from Morgan
Stanley helping, and IBM gets 1% bump on hopes of positive meeting later.
Drop in jobless claims serves to calm some worries about recession, but also
has brought into question what happens with Fed after Tuesday. Still too
early to make that call, though, and half-point will come off Fed funds rate
at 2:15 p.m. ET on Tuesday. (TG)
9:53 (Dow Jones) How about a 50% gain in one year. That's what Merrill Lynch
believes Triad Hospital (TRI) can deliver. The stock, which closed Wednesday
at $24.70, should hit $36 over the next year, says Merrill, which does its
part to promote interest in the stock by upping shares to buy from
accumulate and adding them to the firm's Focus One list of favorite stocks.
(KJT)
9:47 (Dow Jones) The second half of the year is when the economy should
really get cooking again, says Bank One Chief Economist Diane Swonk, who
adds "the Fed has overshot, and the forecast for it to retrace its steps and
raise rates could occur sooner and more aggressively than currently
forecast." (JC)
9:42 (Dow Jones) Saying the "Train Has Left The Station," Morgan Stanley
Dean Witter upgrades slew of semiconductor capital equipment stocks.
Analysts Jay Deahna and Steven Pelayo say the recent sell off in the group
creates a buying opportunity and said the next upswing will kick off in
September or October. The analysts upgrade their investment ratings on
Applied Materials (AMAT), ASM Lithography Holding (ASML), KLA-Tencor (KLAC),
Lam Research (LRCX), Novellus Systems (NVLS) and Teradyne (TER) to strong
buy from outperform. All are higher early in the session. (DLF)
9:38 (Dow Jones) Nymex crude futures are expected to open unchanged to 5
cents a barrel higher, mostly on technicals. But with little incentive to
push prices higher, traders may decide to take profits on Wednesday's sharp
gains. June crude, up 2c at $28.25 in overnight trade, faces resistance at
$28.73; support is seen at $27.75-$27.90. (MXF)
9:31 (Dow Jones) Greenspan at Chicago Fed conference limits prepared remarks
to banking issues. He urges Congress to avoid expanding the safety net that
the government provides to banks through deposit insurance and other
protections, saying an expansion would encourage "speculative and risky
ventures at the expense of sounder ones." Q&A to follow. (FL)
(END) DOW JONES NEWS 05-10-01
12:46 PM
*** end of story *** |
