DJ MARKET TALK: 'Take A Hard Look' At Intel Inventories
06 Jun 09:49
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
9:48 (Dow Jones) Merrill's Joe Osha says it will be tough for Intel (INTC) to
hit low end of company 2Q revenue guidance of $6.2B-$6.8B range. If company
does hit number, he suggests investors "take a hard look" at inventory levels
in Taiwan, and on Intel's own balance sheet, before buying the stock on PC
recovery story. Reiterates neutral. Intel's mid-quarter update tomorrow. (TG)
9:40 (Dow Jones) Nymex crude seen opening 45-50 cents lower on large rise in
crude inventories. Iraqi oil export halt seen limiting losses. "The API's are
overwhelming; we're approaching (inventory) highs not seen since 1998, which
sent crude to $10," analyst says. OPEC decision Tuesday to keep production
unchanged but monitor supply as long as Iraq is out of the market and review at
a meeting July 3 appears to have calmed short-term supply concerns. July crude
is down 54c at $27.70/bbl in overnight trade. (MSX)
9:29 (Dow Jones) Democrats will control the Senate with 50 votes to
Republicans' 49 when the chamber convenes at 11 a.m. Wednesday morning,
reflecting Sen. James Jeffords move to become an independent. Additional talks
to reorganize the Senate are expected through the day, but lawmakers from both
parties have softened their rhetoric and there is hope the Senate can be
quickly reorganized. Jeffords' desk was moved overnight from the GOP side of
the chamber to the Democratic side. (MHA)
9:18 (Dow Jones) The global entertainment and media industry will grow at a
7.2% compound annual rate, reaching $1.2 trillion by 2005,
PricewaterhouseCoopers predicts. Leading the growth will be - of all things -
the Internet. PwC sees the "industry developing new business models that will
stimulate the conversion from free distribution to paid Internet subscriptions,
while solving copyright issues. ... We believe in the Internet's
transformational impact on this industry - particularly as a distribution
medium given increasing broadband and wireless access." (GS)
9:13 (Dow Jones) Lehman still feels good about several life insurers in its
universe, despite a new estate-tax law expected to be signed by President Bush
that could slash their existing estate-tax oriented policies by one-third.
Lehman reaffirmed strong buy ratings on Manulife Financial (MFC), Nationwide
Financial Services (NFS) and John Hancock Financial Services (JHF), saying it
would only account for a 5% to 10% loss in revenue because estate planning is
only part of their businesses. (CUB)
9:07 (Dow Jones) Moody's says latest jump in both M2 and corporate bond
issues suggest "that the phantom recession is all but over." Notes the
corporate bond business tends to lead changes in economic activity, and says
1H's much stronger than anticipated pace of corporate bond issuance might be
harbinger of unexpectedly lively U.S. economy six to 15 months down the road.
M2 up from 5.7% in February 2000 to the 8.2% in April of this year. (TG)
8:57 (Dow Jones) A little trepidation in Tsys market, on light day for
economic data, that Fed Gov. Meyer may sound his hawkish alarm on inflation
pressures, which could hurt long-dated U.S. govt securities, says fund manager.
Meyer slated to speak at 12.45 p.m. EDT in N.Y. to Natl Assoc. for Business
Economics. 30-year down 12/32 at 95 21/32, yield up 2 BP at 5.68%. (JNP)
8:49 (Dow Jones) Lab-testing company Unilab (ULAB) will make a return to the
public markets today after pricing 6.7 million shares at $16, the high end of
estimates, through Salomon Smith Barney and Credit Suisse. Unilab was public
until a 1999 buyout led by Kelso & Co. (RJH)
8:43 (Dow Jones) As stock approaches all-time low, Lehman says Global
Crossing (GX) positives outweigh negatives, and stock offers good near-term
upside. Long-term challengesremain, but shares are off 24% in just last two
weeks, company making progress in commercial business and is clear leader in
bandwidth sector. Target is $28. (TG)
8:35 (Dow Jones) Since the closing low of April 4, the S&P 500 is up 16%.
During that stretch, notes Schaeffer's Investment, Internet, biotech, semis,
and broker/dealers are best-performing groups. HMOs, utilities underperformers.
(TG)
8:30 (Dow Jones) Wall Street is going to take some time early Wednesday to
digest Tuesday's big gains. Stocks are looking flat right now, but there is
some potential for market moving news later in the day - Hewlett-Packard (HWP)
is meeting with analysts at 11 a.m. ET, and Gillette (G) is doing the same two
hours later. Bristol-Myers (BMY) will be active, increasing its buyback program
and, more importantly, reportedly getting close to buying Dupont's (DD) drug
business. Avon (AVP) backs 2Q views of 57c. Notable news from Advanced Micro
(AMD), whose president expects the global PC market to be back to "normal" by
the end of the year. Stock futures flat, Tsys weak. Let's go Sixers. (TG)
(END) DOW JONES NEWS 06-06-01
09:49 AM |
