DJ MARKET TALK: After Juniper, Lining Up The Next Warner
08 Jun 10:35
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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MARKET TALK can be found using code N/DJMT
10:34 (Dow Jones) After Juniper Networks' (JNPR) earnings warning for the
second quarter, which network-equipment vendor could be next? Highlighting that
industry price pressure from large equipment vendors remains fierce, SG Cowen
says in a note Friday that it believes Lucent Technologies (LU) and Nortel
Networks (NT) "have the largest potential for earnings misses relative to
current consensus." SG Cowen believes that Lucent is the most aggressive on
pricing for optical and broadband equipment contracts; Nortel for optical
equipment; and Cisco Systems (CSCO) on select router wins. (BED)
10:29 (Dow Jones) The strong run of energy IPOs may be over, if Torch
Offshore's (TORC) 4% gain in its debut yesterday is any indication, says David
Menlow, president of IPOfinancial.com. "It could be that (underwriter) UBS
Warburg just didn't get the respect of Wall Street with this deal, or, worse
yet, maybe this is a very early read on a possible top coming to the energy
market." (RJH)
10:22 (Dow Jones) The DJIA often takes heat for being too narrow a reading on
the market, with only 30 stocks, but this is ridiculous. The Dow Jones
Industrial Average currently is a two-stock index - Intel and Microsoft.
Trading halted at NYSE until 11:15 a.m. ET. (TG)
10:17 (Dow Jones) Problems at NYSE affecting about half of listed stocks,
which won't start trading until 11:15 a.m. ET. It appears that Kodak (EK),
DuPont (DD), Amex (AXP), Exxon Mobil (XOM), IBM, and Minnesota Mining (MMM) the
impacted names on DJIA. Those names on the Dow that are trading resulting in 38
point selloff on blue-chip index. (TG)
10:08 (Dow Jones) One private-equity firm has a lot riding on the two IPOs
today. Welsh Carson Anderson & Stowe controls both Alliance Data (ADS), which
recently traded 8.75% higher on the NYSE, and United Surgical (USPI), which
hasn't yet begun initial Nasdaq trading. (RJH)
10:01 (Dow Jones) Some may be enjoying the mild spring temperatures, but the
weather, lingering price elasticity and a sluggish economy has led to a
higher-than-expected build-up in natural gas inventories. UBS Warburg analyst
Ron Barone has taken his natural gas forecast for 2001 down a few notches.
Barone's now estimating an average 12-region composite spot price for gas of
$4.85 per million British thermal units, down from from $5.75/MM Btu. (CCC)
9:50 (Dow Jones) What does a $2 increase in the average price of a barrel of
oil mean for the major oil companies? Earnings that are roughly 10% higher,
according to Deutsche Banc Alex. Brown's David Wheeler. Thanks to Saddam
Hussein, the firm has adjusted its 2001 oil price forecast upward to $27 a
barrel from $25 a barrel, and Wheeler has adjusted his earnings forecasts to
reflect the change. (CCC)
9:40 (Dow Jones) Sept. S&Ps break through initial support at 1287.40. Market
now targeting support at 1279.50, 1277.80 and 1274. The layered support is
likely to keep downside in check. Resistance seen at 1295, 1300 and 1310, a
floor-based trader says. (DMC)
9:25 (Dow Jones) Intel (INTC) looking higher after mid-quarter update. Lehman
technician Jeff deGraaf says that while the 200-day moving average on the PHLX
Semiconductor index is still trending down, a move above that level on the SOX
would be a "moral victory." 740 is the breakout level. SOX closed Thursday at
697. (TG)
9:09 (Dow Jones) A quick straw poll among forex traders seems to suggest the
EUR won't suffer much if Ireland votes "no" to EU enlargement. The delayed
arrival of another set of diverse economies into EU could be construed as good
thing, allowing more time for existing countries to converge more fully. (AES)
9:00 (Dow Jones) Two IPOs today have been unable to match the feats of their
recent peers and price their deals at the upper end of estimates. Alliance Data
(ADS), a credit-card services company, priced 13 million shares at $12 each,
the low end of views, while United Surgical (USPI) priced 9 million shares at
$14 apiece, the midpoint of price talk. (RJH)
8:50 (Dow Jones) Moody's says financial institutions have largely escaped the
recent credit carnage, which greatly diminishes the likelihood of a broad-based
credit crunch. Compared to the early 1990s, financial institutions are better
able to absorb a decline in customer credit worth without curtailing liquidity
as severely. (TG)
8:39 (Dow Jones) Some good, some bad for Intel (INTC), says Lehman's Dan
Niles. His main question now is how customers, like Hewlett=-Packard (HWP), can
be lowering forecasts for PC demand and talk about increasing weakness in Asia
and Europe with Intel not seeing it. "The answer is that Intel is one step
removed from the end customer," he says. "We are curious as to what guidance in
mid-July looks like." Keeps market perform rating. (TG)
8:34 (Dow Jones) Junk-bond mutual funds report $191 million cash inflow for
the week ended June 6, according to AMG Data Services. Eight straight weekly
inflows beginning April 18 add up to about $2 billion. (JD)
8:30 (Dow Jones) A mixed bag on the tech front has stocks looking flat in the
early going. Intel's (INTC) up nicely after backing its previous guidance for
the 2Q and saying it's seeing a pick up in business. Juniper (JNPR) is getting
buried, though, after a downtrodden 2Q outlook. 3Com (COMS) and Handspring
(HAND) also both out with warnings. A report out of the Financial Times has the
head of Nokia's (NOK) mobile phone business saying the company hasn't seen any
uptick in business in recent weeks. A rare off Friday on the data front.
Finally, a Sixers win tonight will make a return trip to L.A. unnecessary.
Stock futures mixed - S&Ps off 4, Nasdaq up 6. Tsys mixed. (TG)
(END) DOW JONES NEWS 06-08-01
10:35 AM |
