10:30 ET Dow -36, Nasdaq -5, S&P -2.15: [BRIEFING.COM] The major averages continue to trade in modestly negative ground. After
the first hour of trading, conviction appears to be lacking as the Dow, the Nasdaq and the S&P 500 all favor the flatline. Market internals are
neutral on both the NYSE and the Nasdaq which fits with the lack of a definitive trend to this point in the day. The SOX continues to
demonstrate weakness which is important as the index is under its 50-day moving average of 609. Continued activity under this level is likely
to present problems for the Nasdaq in the very near-term. As for the Nasdaq, the index has very near-term support in the 2140 area which
is undergoing at test at the present moment. So far so good on that very near term level holding. DJTA -0.3%... DJUA -0.4%... SOX
-1.6%... XOI +1.5%... BTK +1.5%... Nasdaq 100 +0.1%... S&P Midcap 400 +0.4%... Russell 2000 +0.3%... NYSE Adv/Dec
1534/1035... Nasdaq Adv/Dec 1602/1404.
10:05 ET Dow -5, Nasdaq -4, S&P +0.73: [BRIEFING.COM] The markets have turned around negative now after an early bump higher.
Nonetheless, sell pressure has not been severe yet to this point in trading. Semiconductors are notably weak this morning on the heels of
some less than positive news from the group. Specifically, Cypress Semiconductor (CY) has warned its second quarter revenues will be in
the range of $175 million to $185 million with earnings expected in the range of break even to $0.02 EPS. This means CY expects to come
in 8% to 13% light on the topline as First Call consensus estimates had been for $202 million in revenues and earnings of three cents per
share. Separately, broadband semiconductor maker Broadcom (BRCM) has had its estimates reduced by Goldman Sachs this morning.
Goldman is citing ongoing inventory corrections in the enterprise and cable markets as its rationale for the lowered numbers. This news has
sent the SOX lower by 1.5% at this early stage in trading.
09:45 ET Dow +21, Nasdaq +18, S&P +4.46: [BRIEFING.COM] As expected by the pre-market activity, the markets have opened
higher to start the day. The Dow has climbed over resistance at 11,000 in an early move higher. Similarly, the Nasdaq is higher as well and
is working its way towards an important resistance level in the 2,175 area. The question for investors is whether this early Monday buy
interest will be sustainable. The economic calendar is light this week which means corporate earnings related news should disproportionately
drive the markets.
09:05 ET: [BRIEFING.COM] Still a positive bias in pre-market activity. S&P futures at 1267, trade five points above fair value while the
Nasdaq 100 pre-market indicator is higher by 17.1 points. Outside of Greenspan's comments on monetary policy, investors have a few
more developments in the semiconductor sector to mull over this morning. Specifically, Cypress Semiconductor (CY 21.60) has warned its
second quarter revenues will be in the range of $175 million to $185 million with earnings expected in the range of break even to $0.02 EPS.
This means CY expects to come in 8% to 13% light on the topline as First Call consensus estimates had been for $202 million in revenues
and earnings of three cents per share. Separately, broadband semiconductor maker Broadcom (BRCM 33.77) has had its estimates
reduced by Goldman Sachs this morning. Goldman is citing ongoing inventory corrections in the enterprise and cable markets as its
rationale for the lowered numbers.
08:45 ET: [BRIEFING.COM] Pre-market activity carries a positive bias this morning. S&P futures at 1268, trade six points above fair
value while the Nasdaq 100 pre-market indicator is +14.2 points. Comments from Fed Chairman Alan Greenspan are contributing to the
positive bias. Speaking at a conference in Singapore, Mr. Greenspan indicated that inflation is not a threat to the U.S. economy. Implicit in
his comments, the Fed remains open to additional interest rate cuts which should be a positive for U.S. equities. In light of five consecutive
half point rate cuts, investor concerns over inflation have served as a drag on the equity markets.
06:20 ET: [BRIEFING.COM] S&P futures trading at 1266.50, 4.5 points over fair value, Nasdaq 100 futures trading at 1861, 18.0 points
over fair value. The 30-year bond is up a tick at 5.700%. The dollar is firmer against the yen, but weaker against the euro.
06:19 ET: FTSE +0.59%, DAX +0.69%: [BRIEFING.COM] European stocks mostly higher in fairly quiet trading with a number of
major markets including France, closed for holiday. Oil stocks boosted by a rise in crude on the back of Iraq’s decision to stop oil supplies
following the UN Security Council’s decision to only extend the oil-for-food program by a month instead of the usual six months. Also faring
quite well today has been Marconi, the UK’s leading phone equipment company. A report in the Sunday Business newspaper said Cisco
Systems may make a GBP12 bln offer for Marconi.
06:18 ET Nikkei +0.38%, Hang Seng +0.50%: [BRIEFING.COM] Asian stocks mostly higher in lackluster trading. Markets boosted
by late-Friday run-up in US shares. Defensive shares (particularly pharmaceuticals and oil) outperformed in Japan, while bank stocks
remained under pressure. Singapore boosted by better buying in heavyweights such as Singapore Telecommunications as well as
China-related stocks. China-based companies also helped to lift Hong Kong higher, while Korea’s Kospi was supported by better foreign
buying. |
