Today's prudentbear -->
Market Summary June 06, 2001
Posted Daily Between 5 and 6:30 PM EST
by Lance Lewis
Market Takes A Breather
Asia was a little higher last night. Europe was down a percent
this morning, and the US futures were a little lower. We opened
lower and tried to bounce a bit. HWP began their analyst meeting
about an hour into the session and said some things people
didn’t like. That was enough to send us lower again till we hit our
lows down around a percent in the S&Ps. From there, we
bounced into the afternoon before rolling over again to fall back
to our lows of the day in the last hour. Volume was just OK (1 bil
on the NYSE and 1.7 bil on the NASDAQ.) Breadth was slightly
negative on both exchanges.
HWP had its milk and cookies party today with analysts and said
some disappointing things. HWP’s CEO, Carly Fiorina, said that
May was weaker than they had expected and that the global
slowdown was spreading from the US and Europe to Asia and
Latin America. Carly said, “We're more convinced that this is a
global IT slowdown that will last for some time.” So, it’s safe to
say that Carly is not in the V-recovery camp I guess. That
dragged HWP down 4 percent on the day and caused a bit of
collateral damage elsewhere after CPQ also chirped about
European weakness, but there wasn’t any selling that was really
that eye catching. Along those same lines, IM is so excited about
the PC business going forward that they announced that they
were amputating 6 percent of their workforce. The semis took a
breather from yesterday’s launch as the SOX managed to close
flat. An analyst flipped to a tout on SUNW from issuing an untout
just last week. That caused a bit of a rally in SUNW this morning,
but by the close the rally had all but evaporated to leave SUNW
up only 3 percent. Tech in general was pretty mixed again today
with no major themes that I could detect. Financials were a little
weaker as the BKX and XBD both fell a percent. The derivative
king (JPM) fell 3 percent after saying that trading revenue would
likely be lower for the remainder of the year due to poor market
conditions.
Oil fell 52 cents after some bearish API numbers were released
last night. The XOI fell 3 percent, and the OSX fell 5 percent on
the back of the weakness in crude. Gold fell 10 cents, and lease
rates were quiet again. The HUI slumped 5 percent. The US
dollar index had another green day and rose a touch. The zero
slipped back below 85 cents again but stopped shy of new lows
ahead of tomorrow’s ECB meeting. Treasuries took a breather
from their recent rally with the 10yr ending unchanged.
Tomorrow, we’ll get earnings from NSM and then after the close
we’ll get INTC’s spin on things (where management tends to lean
to the hopeful side pretty consistently.) How the market reacts to
NSM could give us an idea of how they’re going to react to INTC
on Friday. With the drunken atmosphere we’re currently in, INTC
could say business has gone to zero, and the stock could rally I
think. |
