<FONT COLOR=BLUE>MARKET SNAPSHOT--Markets readying for a steady open
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 8:39 AM ET Nov 15, 2000
NEW YORK (CBS.MW) - The equity markets look to pause at the open with the futures markets pointing to steadiness Wednesday.
The Federal Reserve meets to decide on short-term interest rates, with all of Wall Street anticipating no action. The statement released at the conclusion of the meeting will be crucial for the markets as it'll reveal whether the central bank believes the balance of risks remain tilted toward inflation.
"Consumer spending needs to decelerate by enough to slacken the labor market before the Federal Reserve stops issuing warnings about the nearness of inflation risks," said John Lonski, chief economist at Moody's Investors Service.
December S&P 500 futures shed 1.80 points but were trading about 2.10 points above fair value, according to figures provided by HL Camp & Co. Nasdaq futures, meanwhile, inched up 0.50 point.
On the election front, Florida's Secretary of State said the three counties still conducting a hand count must submit a written reason as to why the results should be accepted. The latest certified vote count shows that George W. Bush leads Al Gore by a tight 300 votes in Florida, pending overseas ballots.
Earnings news
The markets continue to process earnings reports. Sycamore Networks (SCMR) posted late Tuesday a profit from operations of 2 cents a share in its first quarter, a penny ahead of the First Call estimate. The stock closed up 6.5 percent to $64.44 ahead of the news.
Analog Devices (ADI) registered late Tuesday fourth-quarter earnings of 54 cents a share, four cents ahead of the Wall Street consensus estimate. Looking forward, the company said it believes 7 to 10 percent sequential revenue growth will be achievable in the first quarter of 2001 and said revenue growth is likely to be constrained by supply -- not demand. Analog projects first-quarter EPS in the 58 to 60-cent range, ahead of the First Call estimate of 54 cents a share. The stock closed up 15 percent to $55.50.
BEA Systems (BEAS) checked in after the close Tuesday a third-quarter profit of 7 cents a share versus the 6-cent profit expected by First Call. Shares ended up 12.6 percent to $70.94 ahead of the news.
Treasury focus
Government prices clung to the flat line with the 10-year Treasury note off 1/32 to yield ($TNX) 5.76 percent and the 30-year government bond down 2/32 to yield ($TYX) 5.825 percent.
To distract investors from the election machinations, a string of economic reports are on tap for Wednesday. October industrial production, seen rising 0.2 percent, and capacity utilization, expected at 82.2 percent, will be out.
In the meantime, business inventories for September rose 0.1 percent versus the expected 0.3 percent. View Economic Preview, economic calendar and forecasts and historical economic data.
In the currency arena, the greenback traded mixed, with dollar/yen up 0.2 percent to 108.42 while euro/dollar edged up 0.3 percent to 0.8592. |
