13:42 ET Cisco Systems (CSCO) 21.36 +0.60 (+2.8%): -- Update -- Technical -- Third day in a row working on breaking above its Jan/May trendline (at 21.50 today). Sustained penetration targets resistance at 23.4 (100 day simple ma) and the May high at 24.13. Failure at the trendline and a breach of 20.30 would imply a neutral bias at best with potential back to the early June low (18.48).
13:27 ET Nasdaq Improves : Have seen a modest spike in the Nasdaq and most semi and wireless in recent trading; hearing that comments from the NSM conference call spurred the move -- company reportedly said that the improvement in the turns business has been driven by cell phone companies.
13:19 ET Quiet Period Expiration : Stocks scheduled to end their quiet period on June 11 include TELM and SAY with INET and GEG schedule for June 12. Traders positioning in front of these expirations have pushed INET 15% higher over the last several session with TELM up 7% off yesterday's low.
13:00 ET Siebel Systems (SEBL) 50.65 -0.50: Lots of trading floor talk about SEBL and arch-rival Oracle (ORCL 16.85 -0.15) today; most prevalent rumor is that ORCL will soon win a customer relationship management contract with AT&T (T), and that since SEBL has a CRM deal with AWE, it will be perceived as a surprising loss for SEBL. No confirmation on any of these rumors of course, though it's notable that it comes after recent rumors that Oracle won a contract that saved its qtr.
12:56 ET Philip Morris (MO) 47.74 -2.26 (-4.5%): -- Update -- Technical -- Extended the opening losses, which were triggered by the court ruling, but is now attempting to stage a recovery. MO has well defined barriers that will need to be taken out in order to neutralize the negative bias of the last few weeks. The first is at the trendline off the Sep 2000/March 2001 lows and the 100 day simple ma near 48 and the second is at 49.20/49.40 (May 22 low/50 day simple ma).
12:45 ET WorldCom (WCOM) 18.28 -0.29 (-0.5%): -- Update -- Shareholders approve plan to create two tracking stocks. After the close of trading today, each share of the company's existing common stock will be changed into one share of WorldCom Group stock (WCOM) and 1/25 of a share of MCI Group stock (MCIT).
12:28 ET Openwave (OPWV) 41.40 -2.31: Hearing from traders that a factor behind stock's weakness is news that KDDI, a large Japanese telecom carrier and OPWV customer, published slower data sub growth in May vs April; WAP (wireless application protocol) sub growth was 357K in May vs 530K in April; we have not been able to confirm this report.
12:20 ET National Semi (NSM) : -- Update -- Company called it a tough qtr for the industry, but believes that the worst bookings quarter could be behind, as NSM saw improved turns orders in May.
12:11 ET National Semi (NSM) : -- Update -- Looking ahead to Q1, company forecasting a loss of $0.30-$0.35 (mean -$0.03), on a 15%-20% sequential decline in sales; cites low bookings in Q4.
12:07 ET National Semi (NSM) 28.86 +0.89 (halted): -- Update -- Reports Q4 net of $0.00 a share, 3 cents above consensus. Revenues came it at $401.2 mln (mean $393.5 mln).
12:04 ET Nike (NKE) 43.28 +1.88 (+4.5%): Surges out of the starting gate as retailers such as Finish Line (FINL +7.9%) report stronger than expected footwear sales. NKE tested its 100/200 day moving averages (43.3/43.8) and stalled but the strong move on above average volume and positive indicators are favorable. A penetration of moving averages exposes secondary resistance at 45/45.5.
12:03 ET National Semi (NSM) 28.86 +0.89 (+3.2%): Trading in stock halted ahead of chip maker's earnings report.
11:48 ET WorldCom (WCOM) 18.42 +0.05: Hearing that the Dow Jones wire is running a headline stating that CEO Ebbers says that no one has expressed interest in buying WCOM.
11:36 ET Nasdaq Composite : -- Technical -- Solid reversal off the low fails for the second day in a row to take out resistance at the Jan/May trendline (2250). The weak posture of the intraday readings, the extent of the slide thus far and follow through beyond 2226 would raise the possibility of a run back to the 2205/2200 area.
Wells Fargo (WFC) 46.31 -1.53: Earlier today, Friedman Billings downgrades to ACCUMULATE from BUY after company warned yesterday of lower Q2 results related to weakening market conditions; believes upside appreciation in the stock is somewhat limited given that it already trades at significant premium to its peers; would advise investors to use possible weakness in the stock to build positions in the low $40 level where the value proposition once again becomes more appealing.
PECO II (PIII) 9.68 -1.08: Needham & Co downgrades to HOLD from BUY due to a possible break even in Q2 followed by weaker than anticipated cash EPS in the second half of 2001 and for 2002; believes PIII will report cash EPS for Q2 of $0.01 on sales of $25 mln compared to firm's twice downgraded estimated $0.08 on sales of $28 mln to be reported on July 19; also believes PIII may pre-announce these results in mid-June.
Electr. Boutique (ELBO) 31.02 +0.02: Specialty retailer of electronic games announces the promotion of Jeffrey W. Griffiths as the company's new President and Chief Executive Officer, replacing retiring Joseph J. Firestone, effective June 11, 2001; see press release.
Kenneth Cole (KCP) 28.55 -1.46: In morning note, Buckingham Research downgrades to NEUTRAL from ACCUMULATE as firm is concerned that footwear inventory is backing up at retail and KCP is no exception; says industry-wide, footwear sales are running below plan, inventories are running above plan, retailers are not reordering and many are cutting their open to buy for Fall 2001; believes KCP's second quarter of 2001 could be under pressure, because it will have to be promotional to clean up the above-plan inventory levels, putting additional pressure on the stock in the short term.
American Eagle (AEOS) 37.80 -0.70: -- Update -- Buckingham Research downgrades to ACCUMULATE from STRONG BUY; expects the teen retailers to be very promotional for June as they clear summer goods; lowers rating for the short term, however, still very bullish on the stock longer term.
12:00 -- 13:00 ET (Updated throughout the hour)******
Wendy's (WEN) 24.29 +0.13: Same store sales grew by 2.1% in May, on top of a 2.9% increase in the same period a year ago; reaffirms that it expects to produce 12-15% diluted earnings per share growth in FY01, which is consistent with previous guidance from management; see press release.
Circuit City (CC) 16.15 +0.48: This morning, Jefferies & Co downgrades to ACCUMULATE from BUY based on valuation as stock passes 12-month price target of $15; raises price target to $17-18; continues to believe that the stock represents a speculative longer-term value play but does not consider the current price to be an especially opportune one.
Ingram Micro (IM) 43.58 -1.32: Tucker Anthny Sutro reiterates STRONG BUY rating and price target of $20; believes company's plan, announced yesteday, to improve cost efficiencies should result in a more centralized and efficient company; actions should ultimately add as much as $0.10 to brokerage's FY02 EPS estimate.
Brewer Initiations : Banc of America Securities initiates coverage of Adolph Coors (RKY 51.50) and Anheuser-Busch (BUD 43.06) with MARKET PERFORM rating; believes BUD is a well managed company that will continue to grow ahead of the industry and should be able to sustain 10% earnings growth over the next few years; sees recovery of the multiple for RKY coinciding with earnings recovery though the timing and degree is unclear which keeps firm on the sidelines.
National Semi (NSM) 28.86 halted: Reports Q4 (May) net of breakeven, $0.03 better than the First Call consensus, vs year-ago earnings of $0.68; revenues fell 32.6% to $401.20 mln from a year-ago of $595.30 mln; company warns Q1 (Aug) will be a loss of $0.30-0.35, current consensus estimate is a loss of $0.03; plans the elimination of approximately 1,100 positions or about 10% of the company's global workforce; see press release. |
