Some Tech Predictions From Merrill
8:57 (Dow Jones) Merrill's Steve Milunovich is out with 15 technology
predictions for this year. Among them: tech stocks should struggle in the
first half but could rebound in the second; storage and photonics should be
standout sectors; venture capital funds raised and committed could fall by
as much as half; and tech investors will be increasingly frustrated by GAAP
accounting. (TG)
8:51 (Dow Jones) Fears that investment-grade telecom bonds could be sliding
toward BBB ratings left yields 45 BP wider over the last 2 weeks. Bear
Stearns believes most ratings stable near-term, but with KPN facing possible
downgrade, spreads likely to remain under pressure. (DA)
8:46 (Dow Jones) Treasurys are up on the morning after last week's soggy
trading. The five-year note, trading at 103 14/32, is within two ticks of
resistance, says a Greenwich Capital Markets strategist. Others say the
general trend for bonds will be for yield-curve steepening, as the market
wraps itself around the prospect of lower interest rates. (MSD)
8:45 (Dow Jones) Bear Stearns is going cautious, near-term, on restaurants.
Analyst Joe Buckley expects to see profit-taking early this year,
particularly on casual-dining operators who have fared well in recent
months. Buckley says that while industry fundamentals remain solid,
same-store sales growth should slow along with the rest of the economy.
(RLG)
8:38 (Dow Jones) The S&P 500 has been turned away from its 50-day moving
average in each of the last two months, and will retest 1250, says Arnhold &
S. Bleichroeder's John Roque. Tech rallies should be sold into, and the
Nasdaq will retest its Dec. 21, 2000, low of 2288, he says, citing
investors' inability to give up on tech even while the group sinks. He also
likes Florida St. over Oklahoma. (TG)
8:33 (Dow Jones) 2001 will be the year of the dollar downgrade, according to
Mitul Kotecha at Credit Agricole Indosuez. He argues that despite sharp
deterioration in U.S. fortunes, USD was still up a trade-weighted 8.3% in
2000. (NEH)
8:30 (Dow Jones) Don't count on easing back into things after the long
holiday weekend. Wall Street gets back to business with a big reading from
the National Association of Purchasing Managers at 10:00 a.m. ET., and the
rest of the week is loaded with vital economic data. While a 25-basis-point
rate cut is just about a done deal at the end of the month, the chance of a
half-percent easing, not to mention an inter-meeting cut, rests on some of
the upcoming numbers, including Friday's jobs report. Thursday will also
bring earnings from some of the nation's largest brokerage firms. Stock
futures slightly higher. (TG) |
