09:15 ET: [BRIEFING.COM] The markets continue to carry a negative bias. S&P futures at 1263, trade seven points under fair value while the Nasdaq 100 pre-market indicator trades down 40 points. In addition to its optics downgrades, Morgan Stanley is also negative on a few semiconductor names this morning. The firm has cut estimates on a number of key names in the group citing weak demand, inventory drawdowns, and pricing pressures for most of the reductions. Specifically, fiscal year 2001 estimates for Texas Instruments (TXN) go to $0.28 EPS from $0.35 EPS, fiscal year 2001 estimates for Broadcom (BRCM) drop to a loss of $0.25 per share from a profit of $0.05 per share and Morgan Stanley also cut estimates on National Semiconductor (NSM) and Rambus (RMBS). Separately, investors will have a couple acquisitions to mull over this morning. Specifically, Medtronic (MDT) has reached an agreement to acquire insulin pump manufacturer MiniMed Inc. (MNMD 44) for $48 per share in cash. Separately, Tyco International (TYC) has entered a definitive agreement to acquire health care products manufacturer C. R. Bard (BCR 46) for $3.2 bln in stock. The deal values C. R. Bard at approximately $60 per share, based on Tyco's closing price.
08:45 ET: [BRIEFING.COM] Pre-market activity carries a decidedly negative bias this morning. S&P futures at 1263 trade seven points below fair value while the Nasdaq 100 pre-market indicator is down 39 points. An earnings warning from Sun Microsystems (SUNW) is weighing on the markets this morning. Specifically, the technology bellwether warned it now expects fourth quarter earnings in a range from $0.02-$0.04 EPS versus prior expectations of $0.06 EPS. SUNW's topline guidance was also reduced by eight to twelve percent relative to prior expectations. Separately, Morgan Stanley is out this morning negative on optical issues. Specifically, the firm is downgrading Nortel (NT), JDS Uniphase (JDSU), Tellabs (TLAB), and Sycamore (SCMR) citing concerns that capital spending may not ramp again until Q3 2002.
08:30 ET: [BRIEFING.COM] S&P futures at 1264, trade six points under fair value while the Nasdaq 100 pre-market indicator is down 39 points. Cautious comments on optics and chips from Morgan Stanley are contributing to the negative bias.
08:00 ET: [BRIEFING.COM] S&P futures trade at 1264, or six points under fair value. Nasdaq 100 futures trade at 1827, or 50 points under fair value. Last night's earnings warning from Sun Microsystems (SUNW) continues to weigh on the markets.
07:35 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1270; closed 1 pt below fair value. Nasdaq 100 fair value: 1877; closed 21 pts below fair value. Current indications: S&P 500 futures are -4.5, or 5.5 pts below fair value. Nasdaq 100 is -26.5, or 47.5 pts below fair value... Sun Micro (SUNW) earnings warning weighing on market; new twist to the story is greater than anticipated weakness in Europe... Morgan Stanley cutting fiber optics stocks; details to come.
06:12 ET: [BRIEFING.COM] S&P futures trading at 1266.10, 3.9 points below fair value, Nasdaq 100 futures trading at 1837, 40.0 points below fair value. The 30-year bond is up 6 ticks at 5.845%. The dollar is little changed against both the yen and the euro.
06:11 ET: FTSE -1.00%, DAX -0.62%: [BRIEFING.COM] European stocks under the gun as well. Early Alcatel bounce on the back of a break-off in talks with Lucent not able to hold. Technology underperforming with most of the buying seen in the defensive names. Earnings concerns also a negative following news from ThyssenKrupp that the German steelmaker a slowdown in the US and Europe has forced it to scale back full-year profit forecasts for the second time. Philipps hit by second cut in fiscal fourth quarter sales and profit forecasts amid slumping capital spending. Data not particularly friendly with French business confidence at two-year lows.
06:10 ET Nikkei -2.04%, Hang Seng -1.54%: [BRIEFING.COM] Asian stocks lower on the back of yesterday’s Sun-induced sell-off in the Nasdaq. Nikkei hit for more than 2% on the back of Deutsche Securities downgrade of 13 Japanese tech firms. Hong Kong weighed down by China Mobile and better selling in the property stocks. Korea pressured by foreign sellers of tech and telecom, while Singapore fell for the third straight session. Taiwan suffered from Chunghwa Telecom’s announcement that it will sell 480 mln new shares at a discount to the IPO price.
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Close Dow +33.77 at 11039.14, Nasdaq -75.49 at 2175.54, S&P -9.96 at 1267.93: [BRIEFING.COM] The bearish tone in the Nasdaq was clearly created by cautious comments from Goldman Sachs on EMC (EMC 33.99 -3.11) and Sun (SUNW 18.67 -1.80) as that firm lowered estimates for both in the pre-market. A couple of firms, Merrill Lynch and ABN Amro, came out in defense but they were not all that strongly worded. Even a bullish Consumer Confidence Report this morning could not stop the bleeding. The number came in at 115.5 vs consensus of 110.3 which was a modest uptick over the 5-yr low hit in April as consumers are a bit more confident thanks to an aggressive Fed and impending Fiscal stimulus. This indicator is important because higher consumer attitudes result in higher consumer spending.....While all techs were weak, storage and software stocks were hardest hit including MCDT -14%, NTAP -12%, BRCD -11%, EMLX -9%....Lucent (LU 8.32 -1.08) holders are upset that pending deal with ALA will produce little to no premium. However, other news report say the deal is on the rocks...Outside of tech, cyclicals were generally higher including oil, metals, railroad, chemicals. Drug stocks put on an impressive show in a tough market. Financials and electronic manufacturing stocks were among the weakest groups...The Dow was flat to slightly lower most of the day then made a modest attempt at rallying into the close thanks to late charges by EK +4%, IP +3% and DD +3%....The big news for the day will happen after the close as Sun hosts a mid-qtr update at 4:30 ET. Be sure to monitor Briefing.com's Short Stories page for live updates throughout the call and SUNW will be the subject of our after hours Story Stock. DJTA -0.3%... DJUA -0.6%... SOX -4.8%... XOI +0.4%... BTK -2.2%... Nasdaq 100 -4.4%... S&P Midcap 400 -1.4%... Russell 2000 -1.2%... NYSE Adv/Dec 1392/1687... Nasdaq Adv/Dec 1332/2455. |
