street tidbits... sunw, abbey and other stuffs
DJ MARKET TALK: Street Saw Sun Guidance Coming, But This?
22 Feb 16:49
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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4:49 (Dow Jones) Many on Wall Street saw lower guidance coming from Sun Micro
(SUNW). The question is did they know the extent of it? Sun is projecting 3Q
net of 7c-9c a share, way below the 15c consensus. No visibility with regard to
4Q. We'll find out Friday how much the Street cares about $1.5B buyback. Stock
halted. (TG)
4:22 (Dow Jones) BEA Systems (BEAS) tops views, but shares way off in
after-hours activity. Revenue looked about in line. No word on outlook yet.
Shares near $37 after closing regular session around $42. (TG)
4:18 (Dow Jones) Mutual funds attracted the largest monthly net inflow in
history in January. According to fund tracker Lipper, money market funds
accounted for $99 billion of the total $141 billion inflows, reflecting January
retirement plan contributions by employers. Another fund tracker, Strategic
Insight, attributed the money market inflows to shifting of institutional cash
to temporarily higher-yielding money market funds in a declining short-term
rate environment. Equity funds took in $33.5 billion and other fixed income
funds attracted $8.6 billion. (YXH)
4:09 (Dow Jones) The negative spread between auto premiums and rising auto
repair costs is improving, according to a new report from Credit Suisse First
Boston. Insurers are closing the gap as recent rate increases appear to be
sticking industrywide. One indicator is auto rates rose 2.2% in January,
according to the latest consumer price data from the U.S. Labor Department. So,
Credit Suisse concludes now may be the time to buy selected auto insurers.
(CUB)
4:02 (Dow Jones) A most volatile day for stocks, particularly blue chips.
Wild swings hit equities on several occasions, but end result is minimal move.
Nasdaq does close at new bear-market low, and S&P 500 also ends at another
52-week bottom. Perhaps Sun Micro can provide some good news - in the form of
not lowering guidance - later tonight. Economic data out of the picture for a
few days, which may help. Leading indicators won't stop Fed from moving. DJIA
falls 5 to 10521, Nasdaq drops 24 to 2244, and S&P 500 loses 3 to 1252
(preliminary). (TG)
3:49 (Dow Jones) Goldman Sachs chief market strategist Abby Joseph Cohen
still expects Standard & Poor's 500 companies to earn about $60 this year, a
target she set last March. But the profit mix may shift. Oil and gas companies
may show less robust earnings growth because energy prices appear to be peaking
and could go lower. At the same time, the development could remove some
constraints on the earnings of companies that use a lot of these commodities,
Cohen said. (KJT)
3:45 (Dow Jones) Jeffery A. Sine, who acted as an adviser to Time Warner in
its merger with America Online (AOL), has left Morgan Stanley Dean Witter (MWD)
to join UBS Warburg where he will head the Technology, Media and Telecom
investment banking group there. Sine's departure comes as many investment banks
have paid out their year-end bonuses, so more high-profile moves could be on
the horizon as the traditional wooing season starts on Wall Street. (CUB)
3:41 (Dow Jones) IBM options traded briskly Thursday, as they have for the
week. Much of the call volume was accounted for by investors selling calls - a
cautiously bearish, income-generating move. There was also active put buying in
IBM, likely because investors are protecting their stock positions in case Sun
Microsystems's (SUNW) quarterly update after market close contains bad news.
Big Blue has kept to a tight trading range even as other tech names skidded,
and investors likely are anxious to guard against any downside. With the stock
at $108.17, the out-of-the-money March 100 puts gained 10 cents to $2.40 on
CBOE volume of 4,407 contracts. The out-of-the-money March120 calls gained 15
cents to $1 on CBOE volume of 4,741 contracts. (KXT)
3:37 (Dow Jones) USD/JPY up at day's high - Y116.80 - on news that Japanese
sovereign credit has been downgraded by Moody's to AA+ from AAA. (JEN)
3:26 (Dow Jones) March S&Ps and Nasdaq are lower again, in late session
trade. Floor traders do not attribute the losses to any particular catalyst.
"It's still 'sell rallies' mentality down here," one floor trader says. He
attributed the mid-session bounce to relieving oversold conditions. "Just like
in bull markets you have a little selling - in bear markets you have a little
buying. Ultimately the trend doesn't change." he says. (DMC)
3:23 (Dow Jones) Not a real big night on the earnings front. Sun Micro's
(SUNW) mid-quarter update is the biggest scheduled after-hours event, but
Nordstrom (JWN) and BEA Systems (BEAS) do report. BEA off 12%, likely on
worries about its own outlook and nervousness in front of that Sun call. The
majority of BEA's software is sold to Sun customers. (TG)
3:03 (Dow Jones) Celestica (CLS) watchers will no doubt be listening closely
when Sun Microsystems (SUNW) presents its midquarterr update after market
close. In mid-January, Sun, one of only two customers that account for more
than 10% of Celestica's business, lowered its 2001 sales guidance and there has
been speculation that the company will lower its third-quarter guidance
Thursday. (SEW)
2:57 (Dow Jones) A bit more selling creeping back into equities. DJIA off 60
at 10466, Nasdaq Composite down 25 at 2243, and S&P 500 drops 9 to 1245. Toys,
wireless, and brokers provide some support, while Internets and construction
lead the way lower. Close will be vital for Nasdaq - further selling will have
index pointed to 2000, while an uptick may spur talk of at least a short-term
bottom. (TG)
2:48 (Dow Jones) Bank stocks have taken a real beating this week given
concerns about the severity of the economic slowdown and the potential
implications for banks,says UBS Warburg's bank analysts. Namely, higher credit
costs and slower loan growth. Consequently, the "bleak outlook" caused UBS'
50-bank composite to fall 6.6% this week. In light of that, the team reiterated
its selective stance towards the group, "favoring Citigroup (C), FleetBoston
(FBF), and Bank of New York (BK)." (TAS)
2:32 (Dow Jones) Venture capital firms saw a slowdown in the amount they were
able to raise in the 4Q, with 123 funds raising $18.2 billion, compared with
the $27.5 billion raised in the 3Q, according to data from Venture Economics.
But, venture fundraising last year hit a new record at $94.3 billion, 57% above
the $60 billion raised in 1999. (RJH)
2:25 (Dow Jones) Salomon Smith Barney notes Check Point Software (CHKP)
weakness Thursday may be in part a result of confusion between it and
Checkpoint Systems (CKP), which posted earnings a bit below expectations. SSB
sees no fundmanetal change to Check Point's very strong business, and
reiterates buy and $150 price target. Top pick in Internet security. Shares
down 7% at $78. (TG)
(END) DOW JONES NEWS 02-22-01
04:49 PM |
