10:08 ET Some Positives : -- Technical -- While still in the red, several tech stocks have thus far held at supports. These floors are at 57.9/57.3 for JNPR, 16/15.8 for ORCL and 13.08/12.8 for AVCI.
09:59 ET Cisco Systems (CSCO) 18.07 -0.59 (-3.2%): -- Update -- Lazard Freres initiates coverage with an UNDERPERFORM rating and 12-month price target of $12. Firm's price target is based on stock trading at a 35 multiple, which is CSCO's mean for the 5-yr period from 1995-1999. Finds $2 bln write-off of raw material, most of which is probably less than 12 months old, excessive and troublesome.
09:56 ET Nasdaq Composite : -- Technical -- Has tested the early week low of 2088 and bounced but the trading range is limited thus far which is not an encouraging development. The first step to improving the negative bias would be a sustained run through 2129, the top of today's gap. Failure leaves the door open to a solid congestion area at 2060/2050.
09:47 ET Sector Watch : Not surprisingly the tech sector has taken the biggest hit led by Internet (-3.8%), software (-3%), semiconductor (-2.9%) and networking (-2.6%). On the plus side are the groups with solid earnings such as oil, oil service and natural gas and the more defensive plays such as drug and gold.
09:47 ET IDT Corp (IDT) 22.97 -0.18 (-0.8%): Company's IDT Investments subsidiary has entered into an agreement with various affiliates of Hicks, Muse, Tate to increase its stake in Teligent (TGNT 0.68 +0.21, +44%) and ICG Communications. The Hicks affiliates will receive shares of IDT Investments' Series B Convertible Preferred Stock in exchange for their stakes in Teligent and ICG.
09:35 ET Extensity (EXTN) 7.70 -0.10 (-1.3%): Announces that Kimberly-Clark (KMB) plans to deploy Extensity's Expense Reports application to 11,000 users.
09:27 ET Trigon Healthcare (TGH) 58.09: Salomon Smith Barney upgrades to BUY from Hold on view that the Blues (Blue Cross/Blue Shield) are well-positioned to maintain modest organic growth rates while maintaining margins.
09:22 ET Managed Care Downgrades : Salomon Smith Barney downgrades managed care stocks CI, CVTY, HNT, OHP to OUTPERFORM from Buy and reduces MNE to NEUTRAL from Outperform. Downgrades based on thesis of heightened health insurance competition.
09:18 ET MatrixOne (MONE) 22.19: CE Unterberg Towbin initiates coverage with a BUY rating and $30 price target; says MatrixOne follows a conservative approach to revenue recognition and therefore deserves a premium valuation versus its peers.
09:15 ET Aspen Tech (AZPN) 20.28: CE Unterberg Towbin initiates coverage with a BUY rating and $25 price target. Says company dominates its end market and is positioned to participate in a resurgence of technology spending.
09:10 ET Business Week Stocks : Sum-of-the-parts analysis by a Dresdner Kleinwort analyst yields a value of nearly $17 for Hollywood Media (HOLL 4.80)... Wells Fargo Van Kasper analyst thinks apparel stock Jones Apparel Group (JNY 43.27) has more room to run; has 12-month target of $55... Furniture Brands (FBN 23.78) highlighted as a value stock that has attracted the interest of Warren Buffett's Berkshire Hathaway (1.5% stake).
09:06 ET Nextel Comms (NXTL) 18.65: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and $27 target price; projects five-year EBITDA CAGR of 23%.
09:05 ET Sun Microsystems (SUNW) 19.80 -0.64: Bernstein is cautious on SUNW; believes that FY02 revenue growth will be closer to 9-10% than the company's 15% guidance, and sees further downward revisions as a result. Believes that a good entry point for SUNW is $13-15.
09:03 ET Sprint PCS (PCS) 24.94: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and $35 year-end target price; estimates five-year EBITDA CAGR of 36.3%.
09:00 ET AT&T Wireless (AWE) 19.50: Goldman Sachs initiates coverage with a RECOMMENDED LIST rating and $27 target price; cites strong subscriber growth and estimates five-year EBITDA CAGR of 24.4%.
08:56 ET Symantec (SYMC) 64.10: CSFB initiates coverage with a BUY rating and $81 price target.
08:48 ET Unemployment Fallout : Jobs report sends investors fleeing technology stocks. Dramatic swing to the downside in semiconductor and networking/telecom names. Pacing the way to the downside are: AMCC (-6.3%), BRCD (-4.5%), JDSU (-4.3%), CSCO (-4.2%)... Nasdaq futures are currently lock-limit down at -42, but Nasday PMI (-46) showing that the decline is not much beyond that indicated by the futures -- at least at this pt.
08:45 ET Johnson Controls (JCI) 70.91: Prudential initiates coverage with a HOLD rating and $75 target, says stock is fairly priced.
08:42 ET Dana Corp (DCN) 20.37: Prudential initiates coverage with a HOLD rating; says great dividend but limited growth (light backlog and weak industry outlook) suggest upside to share price is capped.
08:36 ET Osicom Tech (FIBR) 6.37: Reduces Q1 revenue outlook to approx. $13 mln from company's previous guidance of approx. $16 mln; cites customer order that was delayed and is now expected in Q2. Reduces workforce by 6%.
08:34 ET Home Depot (HD) 48.51: Appoints former CFO Dennis J. Carey to the new position of EVP of business development, strategy and corporate operations. Company promotes Carol B. Tome to CFO position.
08:33 ET Employment Report : Weakness was widespread -- job declines in construction, manufacturing, and services. The average workweek held steady, which is a lone bright spot. Overall, this report confirms what Briefing.com economists had feared -- that we have yet to see the worst of this economic downturn. Another Fed rate cut of 50 bp on May 15 is likely. Market had moved down sharply as recession fear move back to the fore -- S&P futures went from +1 to -9, Nasdaq from +15 to lock-limit down 42.
08:32 ET RF Micro Device (RFMD) 28.02: JP Morgan upgrades to BUY from LT Buy; says June quarter is completely booked for 20% sequential revenue growth. Premium valuation warranted given growth prospects and strong relationship with Nokia.
08:31 ET Employment Report : Nonfarm payrolls fell 223K vs market expectations of a 25K increase; the unemployment rate rose to 4.5%. This report was much weaker than expected and is depressing the futures in the pre-market; S&P futures now -5 and Nasdaq futures -13.
08:28 ET Symbol Techs (SBL) 27.53: ABN AMRO downgrades to HOLD from Add after management recommended a more modest growth outlook in yesterday's conference call.
08:24 ET MKS Instruments (MKSI) 26.72: CIBC initiates coverage with a STRONG BUY rating and $40 price target. Calls MKSI part of the "Applied Materials food chain." Says revenue model (FY01E $317 mln and FY02E $412 mln) is conservative given incremental addition of revenues from recent acquisitions and growing subsystems revenue base upon next-generation 300mm platforms.
08:20 ET Sapient (SAPE) 12.24: -- Update -- A case of dueling analysts. First Union responds to company's disappointing qtr and reduced guidance by upgrading the stock, citing a deceleration in weakness of the business. CIBC World Markets not as positive, issuing a downgrade to HOLD from Buy.
08:18 ET Wind River Sys (WIND) 26.18: -- Update -- WR Hambrecht downgrades to NEUTRAL from Buy after the company guided down for next qtr. Analyst cites headcount reductions at customers, concern about continued growth of service revenue stream, royalty revenues and pricing pressure.
08:12 ET Waters Corp (WAT) 55.60: Announces that CFO Philip Taymor has decided to reduce his time commitment and will change his role at the company. Will work on a part-time basis in order to spend more time with his family... UBS Warburg says it would view any weakness in the stock on this news as a buying opportunity.
08:06 ET Sapient (SAPE) 12.24: First Union upgrades to STRONG BUY from Buy after company indicated that business is "less worse." Firm raises its conservative price target to $18 from $14 and introduces a 2002 earnings estimate of $0.25... SAPE shares trading at $11.80 in pre-market.
08:00 ET Starbucks (SBUX) 18.95: -- Update -- Lehman expects shares to come under pressure after company reported April comps and revenues on the low-end of ranges. Same-store sales increase of 2% was on the low-end of firm's 2%-4% range; revenues rose 19%, below firm's 22%-24% estimates and management's 20%-25% target... Firm maintaining EPS forecasts and Buy rating.
07:57 ET ABN AMRO Expands Software Coverage : ABN AMRO initiates coverage of ORCL, BMC, and VRTS with ADD ratings. Firm starts CA with a HOLD rating.
07:54 ET Opening Indications : S&P futures +1.5, or 2.5 pts above fair value; Nasdaq 100 futures +15, or 13 pts above fair value. Have seen a nice move higher in the Nasdaq futures over the past half hour; no clear reason for the uptick that we have been able to find yet.
07:47 ET Charter Comm (CHTR) 21.75: Lehman Brothers upgrades to STRONG BUY from Buy. Feels company is poised for multiple expansion as it continues to deliver accelerating revenue and cash flow growth. Delay of equity offering to mid to late 2002 or 2003 diminishes chance for a materially better entry point into the stock.
07:42 ET TMP Worldwide (TMPW) 51.27: UBS Warburg expects company to come in ahead of estimates when results are reported on Tuesday. Looks for management to reaffirm current 2001 EPS guidance and to acknowledge the lack of revenue visibility for the latter half of 2001. Thinks company will discuss plan for offsetting revenue weakness with reductions in marketing spending.
07:33 ET Starbucks (SBUX) 18.90: After the close, company reported a 2% decline in April same-store sales. Despite the slow start to the qtr, SBUX reiterated its 23%-25% full yr revenue growth forecast, noting that slow April results were incorporated in company's recent guidance.
07:18 ET Opening Indications : This morning's fair value figures -- S&P 500 fair value: 1253; closed 1 pt above fair value. Nasdaq 100 fair value: 1888; closed 2 pts below fair value. Current indications: S&P 500 futures are -1.7, or 0.7 pts below fair value. Nasdaq 100 is -10.5, or 12.5 pts below fair value... Little volatility this market in pre-market as investors wait for the April employment data to be reported at 8:30 ET before making any commitments.
07:10 ET Extended Hours Movers : SMDK rose 48% to $5.05 after reporting narrower-than-expected loss... JDEC surged 27% on upside preannouncement for the April qtr... WIND fell 9% after guiding down for Q1.
07:05 ET RadioShack (RSH) 30.71: Reports a 2% decline in April same-store sales. RSH confident that this week's launch of the Verizon Wireless store within a store and the planned June roll-out of a new financial model for direct-to-home satellite will company begin to regain our sales momentum.
07:00 ET Crude Rises : Crude oil prices rose 2% on concerns that inventories are still too low to meet demand during the summer driving season. Energy Secretary Spencer Abraham yesterday forecast a climb in retail prices to an average of 1.60-$1.70 per gallon nationally, a double-digit increase from the year-ago period.
06:50 ET Archstone (ASN) 25.18: Announces acquisition of Charles E. Smith Residential Realty (SRW 45.56) for $3.6 bln in a deal that would create the 2nd-largest apartment REIT in the country. The exchange ratio of 1.975-to-1 values SRW at $49.73 per share, based on ASN's closing price Thursday.
06:43 ET Raytheon Co (RTN.B) 27.75: Discloses that the SEC has requested information on the sale of its troubled former engineering and construction business after acquirer Washington Group International complained that it was defrauded in the transaction.
06:36 ET GlobeSpan (GSPN) 23.03: Company announces that it plans to commence a $100 mln private offering of convertible subordinated notes.
06:15 ET U.S. Markets : S&P futures trading at 1255, 2.0 points over fair value, Nasdaq 100 futures trading at 1888, 0 points below fair value. The 30-year bond is up a tick at 5.635%. The dollar is little changed versus the yen, but weaker against the euro.
06:14 ET European Markets : FTSE +0.92%, DAX +0.06% -- European stocks modestly higher on the back of gains in the telecom sector. Telecom boosted by Goldman Sachs’ upgrade of the sector to "overweight" from "neutral". Deutsche Telecom and Vodafone outperform on the announcement. Oil shares rebound following recent inventory concerns, while finance has been under some pressure with the Morgan Stanley downgrade of Deutsche Bank and news from SocGen, France’s third-biggest lender, that it expects a "significant" decline in first quarter profit due to the deterioration in the US economy.
06:13 ET Asian Markets : Nikkei closed%, Hang Seng -2.38% -- Asian stocks mostly lower with technology underperforming on the back of price pressure concerns. Hong Kong off more than 2.3% with property shares hit by a decline in transactions. Telecom also hit hard, while HSBC still under pressure on speculation that it will acquire Merrill Lynch Taiwan off 3%, its biggest one-day drop in two months. United Microelectronics hit by reports that it may post a Q2 loss, while World Wiser Electronics was pressured by plans to sell more shares and take on more debt to finance acquisitions. Korea closed a tad higher despite a 3% decline in Samsung Electronics. Market boosted by favorable earnings from SK Telecom.
01:32 ET Procter & Gamble (PG) 62.27: Company and Japan's Kao Corp. are expected to submit final bids to acquire Bristol Myers Squibb's Clairol business... Hair-care unit likely to sell for between $4 bln to $5 bln, reports the Wall Street Journal... The bids are due today, though the auction could stretch out longer and other bidders could emerge. |
