alert......do not sell nite or cien....this may help us:
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DJ MARKET TALK: Lucent. Nortel. Cisco? Merrill Says No
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
2:57 (Dow Jones) First Lucent (LU), then Nortel (NT). Is Cisco (CSCO) next? "We don't
think so," Merrill says. Underlying drivers behind growth remain very strong, and company
continues to dominate enterprise market. Optical systems also expected to show good
growth. Firm reiterates buy. Earnings reported on Nov. 6. Separately, with the 6% selloff
in the shares Weds., the stock is nearing again the technically important $50 level. The
shares did close below that level on Oct. 12, but recovered quickly. (TG)
2:42 (Dow Jones) Treasury prices sink lower, with yields of shorter-dated securities
climbing higher than longer maturities. 2-year Tsy yield climbs 10 bp to 5.92%, with
30-yr Tsy yield up 6 bp at 5.76%, widening inverted yield spread to 16 bps. Not a source
of funds for stocks, though, as Nasdaq remains sharply lower. (JNP/TG)
2:33 (Dow Jones) Dec. Nasdaq is off of lows, but still down sharply. Traders say
activity in contract is very choppy, with volume about average. Trader says it's hard to
say whether the market can recover because Dec. Nasdaq is showing little direction.
Bottom pickers are still fishing, but their impact may be muted. "There are only so many
times you can do that, espeically when it goes against you like it is now," he says. Cash
markets also rebounding a bit. (DMC)
2:26 (Dow Jones) Former highflier USinternetworking (USIX) failed to close a $50
million line of credit with GE Capital that it had announced as part of a larger infusion
of cash in July. That forced the company to dip into its coffers during the September
quarter - cash declined to $81 million from $153 million in June. Prudential estimates
that USi has roughly two quarters of cash left. USi, which also missed revenue
expectations, said Tuesday it is in talks to raise additional capital and hopes to work
out a new deal with GE in coming months. Shares off 21%. (MLP)
2:20 (Dow Jones) Senate lawmakers and financial regulators planning to convene a
meeting Wednesday to try to salvage legislation rewriting U.S. commodities laws. A draft
bill issued by Senate Banking Chairman Phil Gramm Tuesday night apparently guts the
Commodity Exchange Act, opens up derivatives markets to retail investors, allows banks to
set up unregulated futures exchanges, and affectively guts existing securities laws.
(DMK)
2:10 (Dow Jones) Although Wednesday's decline in the Toronto Stock Exchange's 300
Composite Index is significant and dramatic, it's not the most the TSE 300 has fallen in
one day. The biggest percentage decline for the TSE 300 was 11.13% on Oct. 19, 1987. The
TSE 300 is currently down 8.12%. (MWW)
2:06 (Dow Jones) Another rough day for AT&T (T). Breakup news doesn't spark stock, and
comes with word of weakened 4Q outlook. Shares off another 13% to $23.25, and analysts
chiming in with negative views. Meanwhile, former AT&T piece Lucent (LU) is down another
6%, toward the $20 level. As two of the most widely owned stocks, there are plenty of
upset holders out there. (TG)
1:45 (Dow Jones) Treasury's $10 billion in two-year notes was awarded on the screws at
5.845%, making it a reopened 5 3/4% five-year note dated Nov. 31, 2002. Bid-to-cover of
2.68 is slightly better than the 12-month average, indicating decent demand despite the
fact that the note is submerged more than 55 basis points below Fed funds. (SV)
01:36 (Dow Jones) As broad market sells off, banks make a stand. The PHLX bank index
is up 0.5%, now resting just below its 20-day moving average, a trendline it hasn't
finished above since Oct. 5. Erich Williams, of Schaeffer's Investment, notes the index
has shown its recent strength by overtaking both the 10-month and 20-month trendlines.
Mellon (MEL) and First Union leading index up Weds. (TG)
1:30 (Dow Jones) Moody's says it's clear Fannie Mae (FNM) and Freddie Mac (FRE) "have
made a sound and solid commitement to become leaders in risk management reporting and
transparency" and that their planned actions "will let them regain control of the debate
about their risk profiles." (JC)
1:18 (Dow Jones) Selloff in stocks turning more serious. Nasdaq Composite down 150 at
3269, with big techs really getting hammered, as evidenced by the nearly 200-point slide
on the Nasdaq 100. Dec. Nasdaq continues to fall, with the market breaking support at
3200 with bears on the prowl. Dec. DJIA also turns back to weaker and Dec. S&Ps take out
session low. Next support for Dec. Nasdaq not seen until 3161. Volume picks up slightly
on move to new lows, not good technically. We're still a long way off, but a close below
3200 on Nasdaq Composite means more weakness to come, technicans say. (TG/DMC)
1:09 (Dow Jones) Analysts remain upbeat about fiber-optics equipment growth, despite
the market's thrashing of Nortel Networks (NT). Some called the negative reaction a great
buying opportunity. Analysts do recognize a slight slowdown in sales, but said Nortel's
problems, such as installation and supply chain management, appear to be company
specific. (WEA)
1:06 (Dow Jones) Nike Inc. (NKE) Chief Financial Officer Donald Blair reiterated the
company's target of mid-teens earnings growth in fiscal 2001. The company's long-term
goal is for 15% or better annual earnings growth, Blair said during the company's
semi-annual analyst meeting Wednesday. (PAP)
MARKET TALK can be found using code N/DJMT.
(END) DOW JONES NEWS 10-25-00
02:58 PM |
