This Yr's Low Volume Marks Will Fall Monday
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
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3:47 (Dow Jones) Lowest volume so far this year, both on March 5: 921
million shares on the NYSE and 1.486 billion on Nasdaq. Today's volume will
replace each as the lowest of 2001. (KJT)
3:41 (Dow Jones) It was a little tough to flush out the news on this one,
but a press package labeled "Urgent! Bathroom Reading Material" seems to be
an update on problems associated with incontinence. Prefacing all this was a
study sponsored by - you guessed it - a drug company that happens to make a
bladder treatment. Anyway, the study, carried out by the National
Association For Continence, also found: More than half of us read in the
bathroom. (Only half?) Nearly half think about serious issues in the
facilities, and around one-third of us retreat there to use the phone. Other
stats - real interesting stats - available from the Association. Might make
good reading material. (GC)
3:33 (Dow Jones) New detailed Bush budget says of economy that "despite the
sudden weakness" that first manifested itself late last year, "most
forecasters, including the Administration, anticipate that an economic
recovery will begin later this year." (JC)
3:20 (Dow Jones) The IPO market will get a boost this year from an unlikely
area: stodgy old insurance. Prudential just filed a $3.8 billion IPO,
following other filings from Phoenix Home Mutual Life and Odyssey Re. In
2000, when almost all sectors tanked in IPO returns, insurance, led by
MetLife (MET), was one of the best performers. (RJH)
3:01 (Dow Jones) Quantech Research's Mark Minervini sums up why he remains
cautious and defensive: a lack of stocks emerging from quality bases;
miniscule growth leadership that recently emerged now seems to be failing;
no new broad groups have assumed leadership; no discernable evidence of
economic recovery; and price and volume action is not confirming a low on
the Nasdaq, and he doesn't believe a new bull market can start without the
Nasdaq's participation. (TG)
2:44 (Dow Jones) Nymex crude pares day's gains as shortcovering dries up and
reports of King Fahd's death are discredited following a denial of the rumor
from the Saudi embassy in London. Support of May contract near $27.50
continues as holdover from gasoline rally. May crude +39c at $27.45/bbl. May
gasoline up 2.28c at 99.20c/gal after hitting $1/gal earlier. (MSX)
2:37 (Dow Jones) Merrill's Chris Callies says investors risk the forfeiture
of sizable capital gains by waiting for profits to reverse. She says this
typically happens 10 months and 42% after the S&P 500 has troughed. Don't
concentrate on bottom-up data, as macro data lead micro data at troughs and
peaks. In contrast to company statements, NAPM new order data suggest order
activity for IT should be past the worst by summer. "Investors should
accelerate a portfolio shift toward equities," she says. (TG)
2:24 (Dow Jones) Prudential says despite fears of recession and negative
comments from Delta (DAL), the leisure travel sector appears to be holding
its own. That's good news for online travel names Travelocity (TVLY),
Expedia (EXPE), and Priceline (PCLN), who receive the majority of their
revenue from the leisure traveler. Short of airline strikes, Prudential
believes online travel companies will continue to post strong results. (TG)
2:10 (Dow Jones) Arnhold's John Roque notes 46% of NYSE stocks are still
above their 30-week moving averages. That's less than the 52.9% average
since 1967, but way above the levels seen at other important bottoms. "At
the very least we figure this indicator will have to work below the 30%
level for us to feel better about committing money on the long side," he
says. (TG)
1:58 (Dow Jones) Returns from venture capital funds dipped into negative
territory in the 4Q of 2000 for the first time since the 3Q of 1998,
according to figures released by Venture Economics. Returns had been
shrinking for much of last year, with the 4Q numbers showing a 6.3% loss.
Still, for all of 2000, venture funds returned an average of 37.6% to their
investors. (RJH)
1:49 (Dow Jones) The Securities and Exchange Commission will Web cast its
roundtable discussion on Regulation Fair Disclosure, which will be held in
New York on April 24. (JAB)
1:40 (Dow Jones) June S&Ps, which just made a low at 1136.50 as they crossed
support at pivot point of 1138.20, are seen having support at 1132.50, and
below that at 1126 - the previous low. (ZHS)
1:36 (Dow Jones) Amazon (AMZN) pre-announced its 1Q results would beat
analysts' recent estimates. But Prudential's Mark Rowen - who received
attention in February when he issued a sell rating on Amazon's stock -
remains concerned about "mounting strategic challenges" for Amazon. Rowen
says Amazon described 1Q growth in its core books, music and video segment
as "slight, which appears to confirm our concern that the company has
saturated the online B/M/V market. We question the high market value placed
on a segment that exhibits little, if any growth." The analyst adds he's
also concerned that consumer electronics is a negative contribution margin
category for Amazon and will lose "more and more money" as it grows. Rowen
reiterates his sell rating and $9 price target on Amazon stock. (RS)
1:18 (Dow Jones) Stocks lose strength. DJIA up 8 at 9799 after move higher
of well over 100 points, Nasdaq drops 5 to 1715. Intel, down 5%, leads both
lower. SOX off 6% on cautious Street views on Intel and group as a whole.
(TG)
1:11 (Dow Jones) Option investors opened a new position and sold November 35
calls in Bed Bath & Beyond (BBBY). The home furnishings chain was upgraded
by several analysts after it reported earnings late last week, and these
investors likely are selling out-of-the-money calls as part of a "buy-write"
- buying stock while selling calls to lower the price of stock acquisition.
With the stock up $1.02 to $27.83, more than 8,450 contracts traded,
compared with open interest of 204. At the Philadelphia Stock Exchange,
these calls were at $2.80. (KXT)
1:06 (Dow Jones) Who is Avon calling? Despite efforts to lure younger, more
professional and affluent consumers, Avon Products (AVP) still appeals
mainly to older, less educated, less affluent women than the average mass
cosmetics consumer. One problem point, Sanford Bernstein's Jim Gingrich
concludes from demographic data collected in the last six months of 2000, is
that Avon's 450,000 direct sales reps in the U.S. "mirror the Avon consumer,
because they sell to their own families, co-workers and friends." Gingrich,
therefore, remains concerned with near-term sales growth prospects in the
U.S. and the company's ability to grow its business over the long haul.
(CEG)
12:57 (Dow Jones) Only continued USD weakness can help gold prices, and with
dollar a little firmer Monday, gold coming off, says analyst. "$258-$260
does seem to be in balance. There does seem to be good buying there." Comex
June down $1.70 to $259.20/oz. (DGB)
12:39 (Dow Jones) In a subdued session, the Nasdaq is retesting the day's
lows. Nasdaq now up 8 at 1728; the day's low is at 1727. The DJIA,
meanwhile, has settled in a rather narrow trading - well off its highs and
lows for the day - at 9848, up 56. (GS)
12:25 (Dow Jones) The Council for Citizens Against Government Waste, the
lobbying arm of a nonpartisan, nonprofit group dedicated to eliminating
waste, fraud, mismanagement and abuse in government, lauds Rep. Baker's bill
to shift regulation of Fannie and Freddie to Fed. (JC)
12:13 (Dow Jones) The market is rallying and most consumer goods stocks are
contributing to the cause. The exceptions: Colgate-Palmolive (CL) and Dow
component Procter & Gamble (PG). P&G, down 1.2%, still battles investor
uncertainty surrounding its recent quarterly profit warnings. Meanwhile,
Colgate, just about the only household products company in the group that
has been able to deliver double-digit EPS growth, is down 2.2%. Barron's
reports this week that at $52, Colgate's stock is fairly priced and that its
risk/reward profile may no longer be favorable. (CEG)
(END) DOW JONES NEWS 04-09-01
03:48 PM
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