MARKET SNAPSHOT--Sloppy open for stocks
Bond prices slide
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 9:32 AM ET Aug 30, 2000 NewsWatch
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NEW YORK (CBS.MW) - The U.S. equity market is readying for a mixed open Wednesday with the brokerage arena again poised to capture the spotlight on the heels of merger news.
Ending speculation, which began early Tuesday, Credit Suisse First Boston announced it's purchasing Donaldson, Lufkin & Jenrette in a $11.5 billion deal. Credit Suisse will pay $90 for each share of DLJ, representing a premium of about 10 percent. See full story.
"It's a continuation of a trend that we've seen in the past years. We're seeing more and more consolidation on the sell-side of the business," said Joe Liro, market analyst at Stone & McCarthy Research Associates.
"In terms of strategy, it's a fairly logical move for both sides," he noted.
"The only thing that will stop this trend is when everyone will have bought everyone else," Liro continued.
"There will be more and more pressure on the remaining people on the dance floor to find partners. We know who the candidates are, there are always negotiations going on," Liro concluded.
DLJ (DLJ: news, msgs) tacked on 3 3/8 to 85 1/4 in Instinet pre-market dealings following a 25 percent jump on Tuesday. See Indications. On Tuesday, the Amex Securities Broker/Dealer Index ($XBD: news, msgs) jumped 5.3 percent and reached an all-time in intra-day dealings Tuesday.
September S&P 500 futures lost 5.50 points, or 0.4 percent, and were trading about 2.50 points below fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, dipped 13.00 points, or 0.3 percent.
Over in the bond market, prices continued their descent, with the 10-year Treasury note off 5/32 to yield ($TNX: news, msgs) 5.82 percent and the 30-year bond was off 11/32 to yield ($TYX: news, msgs) 5.76 percent.
Yields are hovering at their lowest level in about a year as investors' confidence that the Fed will be out of the picture for the next months has swelled. This has brought on some profit-taking on the part of bond dealers this week.
On the economic front, Wednesday will see the release of July leading economic indicators, expected to slip by 0.1 percent, according to a survey of economists conducted by CBS MarketWatch.com. View Economic Preview, economic calendar and forecasts and historical economic data.
In the currency arena, dollar/yen (C_JPY: news, msgs) was up 0.4 percent to 106.48 while euro/dollar (C_EUR: news, msgs) edged up 0.1 percent to 0.8915.
The market will keep an eye on commodity prices Wednesday as players digest the supply figures from the American Petroleum Institute. Late Tuesday, the API said crude-oil stocks rose 5.3 million barrels in the week ended Aug. 25 to a total of 286 million, according to the API. The data came in higher compared to analysts' expectations for a 3.7 to 4.1 million-barrel rise. See full story.
Julie Rannazzisi is markets editor for CBS.MarketWatch.com. |
