March Nasdaq Falls To Limit Down
2:51 (Dow Jones) March Nasdaq falls to limit down, 65 points lower at
2464.50 at 2:44 p.m. ET. A 10-minute trading curb is in effect. If the
markets remain at limit down a 2-minute trading halt will occur. March S&P
also showing new lows. The break of 1345 could take March S&Ps to 1338.50,
floor trader says. (DMC)
2:49 (Dow Jones) Though cheered by Wednesday's rally following the Federal
Reserve's decision to raise interest rates, individual investors were not
ready to call the bottom on the stock market's decline. A look at online
stock discussions suggests that the memories of bust are far too fresh, and
trading accounts too painfully barren, for investors to throw caution to the
wind and start buying stocks just yet. (RR)
2:37 (Dow Jones) Shares in Brazilian jet maker Embraer (ERJ) are taking a
nosedive, down 7.2% to $38.75 after being downgraded by several investment
banks. The correction is due to recent run-ups in Embraer American
Depositary Receipts, which doubled in value since their July listing on the
Big Board. (AG)
2:32 (Dow Jones) March Nasdaq is weakening with the losses in the cash
market, but its losses are not as severe. Market remains just above session
lows. Traders watching to see if futures can avoid a sell-off. (DMC)
2:25 (Dow Jones) According to CME's Wednesday volume and open interest data,
E-Mini Nasdaq 100 contract set a volume record of 115139 contracts traded,
surpassing the former record of 105721 set on Nov. 30. (DMC)
2:19 (Dow Jones) The Dow Jones Transportation Average's rally this week,
inspired by the Fed rate cut, sent it above a level that, according to the
old-school Dow Theory, suggests there's more upside for the broader market.
The transportation average is now hovering above the key level of 2952, and
the DJIA's close above 11310 "would be a signal for a bull market" under the
theory, says a fund manager. (SON)
2:10 (Dow Jones) Just more proof that the so-called smart money is sometimes
just as misguided as the average guy on the street, Mercata, the company now
closing shop after pulling its $100 million IPO, was majority owned by
Microsoft (MSFT) co-founder Paul Allen's Vulcan Ventures at the time it
filed for its offering. (RJH)
2:01 (Dow Jones) McLeodUSA Inc.'s (MCLD) offering of $450 million in senior
notes due 2009 is twice oversubscribed, according to Morgan Stanley analyst
Todd Scott. The deal is expected to be priced this afternoon. Price talk for
the notes' yield is 11% to 11.5%. Scott is hearing the interest rate will be
set at 11.25% at 2 p.m. (CBN)
1:55 (Dow Jones) Investors may have dodged a bullet with this one. Mercata,
a purchasing-related Web company, was all set to sell up to $100 million in
an IPO led by the venerable Goldman Sachs, a deal that was filed in March.
Yesterday, the company, like many others lately, pulled its IPO plans.
Today, Mercata said it will cease operations after no other funding was
available. (RJH)
1:42 (Dow Jones) UBS-Warburg's Managing Director for global asset allocation
Larry Hatheway cuts cash holding in his global model portfolio to 2.5% from
previous 5.0% because Fed's "more aggressive policy stance will improve
overall market liquidity conditions." The 2.5% freed from cash goes partly
to stocks, up by 1.6% to 60.6% total, partly to bonds, up by 0.9% to 36.9%
total. (JNP)
1:27 (Dow Jones) Rep. Saxton introduces bill to "shield most middle class
investors from immediate taxation of involuntary mutual fund capital gains
distribuions." (JC)
1:14 (Dow Jones) Bonds of Calif. utilities swoon as defaults loom larger
after disappointing rate relief proposal from regulators. Southern Cal
Edison's 7 5/8% notes due 2010 bid at 60, 14 points lower on the day. (DA)
12:48 (Dow Jones) A floor trader in S&Ps said the timing of the Fed's
surprise rate cut was about as good as it could be. "To me, it seems that
doing it during lunch was good timing because a lot of people were off the
floor," he said. "If we would have had a full pit, I think a lot more people
would have been hurt." He says many times locals will close out a position
before they leave the floor for lunch if they're working on something
short-term. No real stories of major blood-letting. (DMC)
12:45 (Dow Jones) N.Y. stocks are holding their gains, with the Dow staying
more than 50 points ahead and the Nasdaq Composite holding onto a 13-point
gain. S&P 500 is down about 3 points. (RJH)
12:39 (Dow Jones) Sen. John McCain stresses at the confirmation hearing for
Donald Evans to be Commerce Secretary that "one of the most important
missions of the Commerce Department is to remain politically neutral." (JC)
12:33 (Dow Jones) Citigroup's (C) Citibank is pushing to be a major issuer
of credit card ABS debt in 2001: Its Credit Card Issuance Trust filed a
registration statement for another $12 billion of notes. (DF)
12:26 (Dow Jones) "People need money in their pockets now if we're going to
head off problems down the road," says Bush economic adviser Larry Lindsey.
(JC)
12:23 (Dow Jones) Though some have said a tax cut would further help the
economy, Rep. John LaFalce, senior Democrat on the House Banking Committee,
says a massive tax cut "would limit the Fed's ability to maintain lower
rates and would ultimately imperil our long-term economic success." (JC)
12:20 (Dow Jones) Has the clunky-old mainframe computer come back from the
dead...again? That's what some investors seem to think after BMC Software
(BMCS) promised a better-then-expected third quarter. They have been
scooping up mainframe software stocks with abandon. Prudential is upgrading
the mainframe software sector, saying the companies are "beginning to show
signs of life." BMC, Computer Associates (CA) and Compuware (CPWR), whose
business and stocks languished last year, are up 40%, 20%, and 15%,
respectively. (MLP)
12:12 (Dow Jones) Floor traders attribute the choppy trade in March S&Ps to
nervousness. "Now that the Fed has come in and cut rates, there are a lot of
people who are afraid to be short," one floor trader says. "I thought after
that huge run up we'd see more selling but we haven't." Merrill Lynch is
seen as a seller of about 400 March S&Ps. Chatter in market surrounds the
possiblity of another surprise Fed cut and then a cut at their late January
meeting. (DMC)
12:02 (Dow Jones) The rate cut hasn't sparked a change in the cautious
stance venture capitalists are taking to start-ups. "I don't think you're
going to see a return of the startup investing frenzy," said Bruce Ezell,
general partner of Techxas Ventures in Austin. (RJH)
11:56 (Dow Jones) On a pre-recorded message about December sales, Wal-Mart
(WMT) said that it didn't meet the sales plan that was consistent with
fiscal fourth quarter earnings of 46 cents to 48 cents a share. The company
said fourth quarter earnings could be below earlier expectations, but that
it believes earnings will be greater than the 43 cents a share it earned in
the previous fourth quarter. Thursday, Wal-Mart said December same-store
sales rose 0.3%, it had previously expected sales for the month to rise 3%
to 5%. (PAP)
11:46 (Dow Jones) National Association of Manufacturers is touting
November's factory orders data. "Although capital investment was apparently
weak in the fourth quarter," the upcoming quarter "should show a welcome
rebound as companies gear up for higher production," said NAM president
Jerry Jasinowski. (JN)
(END) DOW JONES NEWS 01-04-01 |
