ALL THE PRE-MARKET NEWS -->
09:32 ET BUCA (BUCA) 21.83 +0.88 (+4.2%): Restaurant operator reaffirms projection of 40% earnings per share growth in 2001; says comp store sales and guest counts continue to grow, and new restaurants are opening on schedule.
09:28 ET Broadcom (BRCM) 35.57: -- Update -- Conference call ends; company guided Q2 pro forma EPS to a loss of either $0.15 or $0.16 (unclear) to $0.18 per share; also said that Q3 would be roughly flat with Q2 and that it is seeing some signs of new orders that it believed would lead to renewed growth late in the year. Stock rebounds to 35.23 pre-market.
09:25 ET Banc of America on Semiconductors : BAS saying its motherboard checks at Computex in Taiwan suggest incrementally positive outlook for Sept. qtr; also notes conversations with four large Taiwanese vendors indicate a pick up OEM activity; firm expects motherboard unit shipments to come in at the high end of its current range (down 15%-20% sequentially) and favors PC-centric stocks.
09:21 ET CV Therapeutics (CVTX) 49.84: Prices 2 mln share spot secondary at $49.50 per share. SG Cowen acted as underwriter.
09:13 ET SSB from Supercomm : Hearing from sources at Salomon Smith Barney that the company just made comments out of Supercomm; firm said that it is cautious on the new Redback (RBAK) strategy and thinks Cisco (CSCO) is beating them on the SmartEdge product; said that it didn't get a positive feel from either JNPR or NT, and would stick with names it likes such as CSCO, EXTR, and FDRY.
09:09 ET Quiksilver (ZQK) 21.60: Merrill Lynch raises near-term rating to BUY from Accumulate based on acceleration of backlogs for Fall and discounted valuation following 20% slide in stock this week. Feels pullback due to concerns about the retail environment.
09:06 ET Broadcom (BRCM) 35.57: -- Update -- On conference call, company says that Q3 revenues will be roughly flat with Q2; doesn't see renewed growth until late in the year.
09:05 ET Research In Motion (RIMM) 34.70: Merrill Lynch responds to yesterday's comments by CIBC World Markets. Merrill feels that RIMM's success this yr depends upon carrier rollouts, the rollout of Blackberry for Notes, and the overall health of enterprise IT spending, not on AOL ordering more devices (though would be nice). Firm has modeled approx. 10% of unit shipments in Nov. and Feb. to AOL, but feels that if core biz is working, AOL is gravy.
09:05 ET Adv. Fibre Comm (AFCI) 19.39: Hearing from sources at Robertson Stephens that the firm made positive comments on AFCI; said that current price offers compelling risk/reward proposition and that quarter looks good, with potential upside from Verizon (VZ).
09:04 ET CIBC on Russell Index : Using last year's smallest market cap in the Russell 3000 Index as a proxy, CIBC believes the following issues have the potential of being added to the Russell Index this year: Prosperity Bancshares PRSP (Strong Buy, target $25), Sterling Bancorp STL; First Essex Bancorp FESX (Buy); and Hold-Rated Arrow Financial AROW and Financial Institutions FISI; firm notes substantial price appreciation in these names making them vulnerable to profit taking when the rebalancing is completed on 7/1.
08:59 ET CIBC on Web Hosting : CIBC World Markets says that a study it has completed indicates huge oversupply of new data center space vs sold space; believes this will lead to 30% price cuts per year on all colocation business for the next few years; firm lower FY02 EBITDA estimate on Exodus (EXDS) to $350 mln from $730 mln.
08:58 ET Gap Inc (GPS) 31.39: Reports 10% decline in May same-store sales. "May results fell well below the low single digit comp we had projected for the month." Company expects Q2 comp to be below the negative mid-single digit guidance previously given.
08:56 ET Network Six (NWSS) 2.65: Agrees to be acquired by TRW Inc (TRW) for $3.60 in cash.
08:56 ET Robbie Cuts Power Supply Cos : Robertson Stephens downgrades Peco II (PIII) and Power-One (PWER) to MARKET PERFORM from Buy; cites continuing weakness in end-market demand as evidenced by Artesyn's (ATSN) warning.
08:54 ET Gapping Up/Down : LOUD +83% (Napster selects company to provide technology to identify copyrighted music)... CANI +33% (raises FY01 outlook)... CHKP +2% (First Union upgrade)... Gapping Down: AEOS -5% (earnings warning)... CHIR -5% (plans $400 mln convertible offering)... BRCM -3% (issues downward guidance)... BBBY -3% (downgrade)...AMCC -2.5% (fallout from BRCM warning).
08:47 ET Human Genome (HGSI) 75.31: Prudential raises price target to 94 from 78 and reiterates BUY rating; cites several new product candidates revealed at HGSI's "Investor Day"; solidifies company's position as bellwether of genomics; notes June 30, 2001 marks the end of the Human Gene Consortium which will enable HGSI to enter multiple value creating relationships over next few years.
08:45 ET S1 Corp (SONE) 11.50: Announces that IBM Corp's (IBM) global sales teams will promote SONE's applications for consumer eFinance to mutual customers as part of expanded global alliance with the company.
08:43 ET Wells Fargo (WFC) 47.84: Keefe Bruyette downgrades WFC to MARKET PERFORM from Outperform and cuts target to $51 from $55; also reduces full year EPS estimate to $2.00 from $2.80; says that since venture capital gains were included in estimates, that venture losses should also be included.
08:35 ET Home Depot (HD) 49.51: Announces that EVP of Merchandising, Mark Baker, has decided to leave the company by the end of summer to pursue business interests independent of the home improvement retailing industry.
08:35 ET Triton Energy (OIL) 29.74: JP Morgan upgrades to BUY from Mkt Perform and raises price target to 35 from 31; cites significant exploration upside in drilling program; notes OIL's "great discovery" on Monday and today's announcement they have lined up rig to drill exploration well near previously announced discovery; results due in 30 days and JPM sees strong probability for success; NAV est raised from $31.70 to $35.
08:32 ET Economic Data : Initial jobless claims for the week ending 6/2 rose 13K to 432K, well above the 418K consensus. These data were for the Memorial Day week, which can sometimes create more volatility due to the aggressive seasonal factors surrounding the holiday, but the trend in unemployment is nevertheless up.
08:28 ET eBay (EBAY) 64.57: JP Morgan believes that EBAY will beat its Q2 EPS of $0.09 by 1-2 cents and the revenue estimate of $164 mln by $2-5 mln; expects international and all metrics to be strong.
08:26 ET Broadcom (BRCM) 35.57: -- Update -- CSFB says it "expects to lower estimates significantly after the call -- as much as 15 to 20 cents for this year, and next." Firm agrees with BRCM that mkt is stabilizing but cautions many stocks assume a "robust V-shaped" recovery in valuations. See 7:52ET comment for conference call details.
08:25 ET Federated (FD) 44.90: Reports a 3.3% decline in May same-store sales. "Although we are only one month into the second quarter, we are concerned by the May sales trend." Warns that unless department store sales is reversed, it is likely that earnings for the qtr will drop below prior guidance.
08:22 ET Check Point Sftwr (CHKP) 49.19: First Union upgrades CHKP to STRONG BUY from Buy while cutting price target to $70 from $90; firm says that while recent concerns about competition in the VPN market are valid, they have been exaggerated and are now fully discounted in the stock price. CHKP trading up to 51 pre-market.
08:18 ET Executive Search Firms Cut : CSFB downgrades executive search firms Korn/Ferry (KFY) and Heidrick & Struggles (HSII) to HOLD from Buy; cutting numbers to reflect exposure to executive search and middle management contingency searches, owing to consistent reports of industry weakness and company preannouncements... KFY '02 est. being cut to $0.60 from $1.33; for HSII, reduces FY01 to $0.70 from $1.50 and 2002 to $1.30 from $2.50.
08:13 ET AOL Time Warner (AOL) 52.28: DB Alex. Brown notes that despite nervousness about AOL's ability to meet estiamtes, CEO Jerry Levin said at the DB Alex. Brown conference yesterday that he "had never been more comfortable with the estimates."
08:13 ET Opening Indications : Not much enthusiasm in the early-going as the S&P futures, at 1272, remain 1 point above fair value while the Nasdaq 100 futures, at 1900, are 6 points below fair value... Subsequently, cash market is currently expected to start the day on a mixed note.
08:06 ET Bed Bath & Bynd (BBBY) 30.36: Banc of America Sec. downgrading to MKT PERFORM from Buy; cites valuation following 23% advance since April 4; sees little upside from current levels due to valuation and short-term concerns relating to HomePlace store closures and slowing discretionary spending.
08:04 ET SIA Data : The SIA (Semiconductor Industry Association) released its mid-year forecast for semiconductor sales. The SIA is projecting 20.5% growth in 2002 (revised up from 10%) and 25% growth in 2003... In response to the SIA data, Salomon Smith Barney analyst Jon Joseph says that 2002 will see a strongly above trendline recovery and it looks like clear sailing until 2004, when the overall mkt should slow to 7% growth.
08:04 ET Mitchell Energy (MND) 52.24: Goldman Sachs upgrades to RECOMMENDED LIST from Trading Buy; cites strong production profile, potential for drilling activity to dramatically increase over next 10 to 12 months and attractive valuation relative to peers; sees main risk as the uncertainty surrounding near-term direction of oil and gas prices but assuming prices remain around $3.50-$4.00 per MCF, the stock could reach 63-64 which implies 20%-24% return from current levels.
08:00 ET ARM Holdings (ARMHY) 14: Hearing from traders that the weakness in the stock in Europe is due to a Bloomberg report that the company presented at a Prudential conference in London and reiterated that royalty revenues will fall 20% in Q1; this is not new news, so it is unclear if this comment is just a scapegoat for the declines or there was just an overall negative tone to the presentation that hit the stock.
07:56 ET Oracle Corp (ORCL) 17.00: ABN AMRO expects ORCL to meet EPS expectations when it reports June 18, but that revenue will come in below consensus; feels that weakness is already priced into the stock.
07:54 ET Philip Morris (MO) 50.00: -- Update -- Salomon Smith Barney does not expect massive $3 bln judgement against Philip Morris to remain intact and the appeal prospects appear good.
07:52 ET Broadcom (BRCM) 35.57: -- Update -- The dial-in number for the 8:45ET conference call is 212.896.6005. The company did not release a dial-in number to the public, instead directing investors to the webcast at www.broadcom.com/investor.
07:52 ET Opening Indications : S&P futures, at 1272, are 1 point above fair value while the Nasdaq 100 futures, at 1902, are 4 points below fair value... Traders anxiously awaiting Intel's (INTC 29.82) mid-quarter update after the close... Not helping early tone are downgrades of Corning (GLW 19.52) and Gillette (G 28), the $3 bln verdict against Philip Morris (MO 50), a Pacific Sunwear (PSUN 22.27) earnings warning, and a Broadcom (BRCM 35.57) revenue warning.
07:46 ET Gillette (G) 28.00: Salomon Smith Barney downgrades to NEUTRAL from Outperform, citing company's anemic growth outlook; reduces price target to $25 (from $32).
07:42 ET SatCon Tech (SATC) 13.38: Completes offering of 1.46 mln shares of common stock at $12.125 per share, raising $17.7 mln.
07:40 ET American Eagle (AEOS) 38.50: Retailer reported a 0.2% increase in May same-store sales, compared to the 2%-4% improvement anticipated by Robertson Stephens. Firm maintaining its Q2 earnings est. of $0.19, which is already below the $0.21 consensus.
07:37 ET Pacific Sunwear (PSUN) 22.27: Reports a 9.8% decrease in May same-store sales. Warns that Q2 earnings will come in between $0.13-$0.17 (consensus $0.26), after May sales come in significantly below plan. Expects sales to remain difficult for at least the next two months.
07:30 ET Take-Two (TTWO) 22.30: UBS Warburg upgrades to BUY from Hold based on outlook for a strong yr in publishing, a strengthening balance sheet, and attractive valuation; despite significant run in price, firm says TTWO still trading at discount to its peers; firm raises price target to $30.
07:26 ET Corning Inc (GLW) 19.52: DB Alex. Brown downgrades to MKT PERFORM from Buy on concern GLW will find it difficult to meet firm's revenue/earnings projections; believes company faces a challenging yr given the margin pressure that GLW is likely to face as a result of the rapid decline in the mix of premium fiber. Reduces FY01 est. to $0.84 from $0.85 and FY02 to $0.88 from $1.06.
07:22 ET Opening Indications : This morning's fair value figures -- S&P 500 fair value: 1271; closed 3 pts above fair value. Nasdaq 100 fair value: 1966; closed 2 pts above fair value. Current indications: S&P 500 futures are -1.4, or 1.6 pts above fair value. Nasdaq 100 is -8, or 6 below fair value... Early tone slightly negative following BRCM earnings warning and ahead of Intel mid-qtr update this evening. Helping to offset weakness is upward revision to chip sector sales growth outlook by the SIA.
07:14 ET American Power (APCC) 16.19: Company's CEO files with the SEC to sell 2 mln common shares.
07:12 ET Loudeye Tech (LOUD) 1.21: Napster selects Loudeye to provide fingerprinting technology (to identify copyrighted music) for use in Napster's planned membership service, which is slated to launch this summer.
07:02 ET SSB Adjusts Equity Weighting : Salomon Smith Barney's Global Equity Market Strategist raised his weighting for the U.S.equity markets to Overweight from Marketweight this morning, taking some money out of Europe due to concerns about slowing economic trends there.
06:55 ET Advanced Micro (AMD) 28.37: Speaking at news conference in Japan, company's COO reiterates previous expectations that AMD will achieve modest revenue growth in 2001; sees increasing reason to believe that the personal computer market is stabilizing and will return to normal in Q4 of this year.
06:47 ET Broadcom (BRCM) 35.57: Guides down Q2 revenue forecast to a range of $207-$216 mln, compared to current Multex consensus of $241 mln. CEO says that while demand remains soft; they are seeing some signs of stabilization in the business for the second half of the year... Damage limited in the Comm IC space, as investors had anticipated a downward revision from BRCM.
06:40 ET Conductus, Inc. (CDTS) 6.26: Receives follow-on deployment order for multiple ClearSite systems from one of the ten largest wireless carriers in the United States. The new order follows successful 2G trials and an initial deployment.
06:32 ET Philip Morris (MO) 50.00: A Los Angeles jury has ordered company to pay $3 bln in punitive damages to 56-yr old cancer patient, Richard Boeken, who claimed the company failed to sufficiently warn of the health risks of smoking... Stocks to watch in sympathy: RJR, BTI, LTR.
06:17 ET U.S. Markets : S&P futures trading at 1273, 2.0 points over fair value, Nasdaq 100 futures trading at 1903, 3.0 points below fair value. The 30-year bond is down 9 ticks at 5.667%. The dollar is weaker against the yen, but firmer against the euro.
06:16 ET European Markets : FTSE +0.26%, DAX -0.21% -- European stocks mostly lower. Another round of earnings’ concerns and a fifth consecutive monthly jump in German unemployment help to dampen hopes that things may be turning around. Hays, Gemplus and Solvay all warn, while concerns about an Intel warning later today also weighs. Tobacco stocks hit by yesterday $3 bln verdict against Philip Morris.
06:15 ET Asian Markets : Nikkei +0.78%, Hang Seng +0.94% -- Asian stocks mostly higher. Japan higher with technology outperforming on the back of an unexpected 6.3% jump in April machinery orders. Gains largely a function of short-covering however. Taiwan hit by concerns surrounding the government’s ability to sell a 5% stake in Chunghwa Telecom. Korea boosted by chipmaker outperformance stemming from a rise in semiconductor prices. Hong Kong up on bargain hunting in blue chip names.
01:17 ET Circuit City (CC) 15.67: Michigan's attorney general intends to sue CC for failing to give rain checks to customers for discounted items not in stock during advertised sale periods, reports Wall Street Journal.
00:51 ET Cendant Corp (CD) 18.48: Company in negotiations to buy electronic travel-reservations service Galileo Intl (GLC 29.50) in a cash and stock deal valued at about $3 billion, reports Wall Street Journal... According to WSJ, deal could be finalized within the week... Rumors of deal first circulated by CNBC late yesterday afternoon. |
