M A R K E T .. S N A P S H O T -- Modest upside expected for shares
Another positive chip call to underpin techs
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 7:59 AM ET Aug 13, 2001
NEW YORK (CBS.MW) -- Stocks are set for some modest upside once trading begins for the new week. Most of the strength is developing in the tech sector, which has been slammed with losses for the past six trading sessions and got an early boost from a Goldman Sachs upgrade Monday of a smattering of chip stocks.
Glancing at the futures markets, September S&P 500 futures rose 4.20 points, or 0.3 percent, and were trading about 2.00 points above fair value, according to HL Camp & Co. And Nasdaq futures gained 16.00 points, or 1.0 percent.
Goldman upped its view on Intel, Broadcom, Analog Devices, Maxim Integrated and also upgraded Qualcomm as part of its chip sector call. .
Meanwhile, Lehman Brothers analyst Seth Dickson said despite positive comments from Texas Instruments (TXN) Friday, he believes analog stocks are now fully valued and would continue to remain cautious of the group in the near term.
"Given economic troubles internationally, weaker end demand and channel inventory issues, we are not ready to call a bottom in analog stocks and believe there are further risks to downside earnings-per-share revisions to the third and fourth quarters unless things change dramatically," Lehman said in a note to clients. The analyst said he believes Analog Devices will meet the low end of pre-announced financial targets. On Friday, Texas Instruments said in a conference Call hosted by Merrill Lynch that it's seeing some stabilizing in its backlog and has begun to see some new order activity in the analog segment.
Treasury bonds lost some traction in early dealings, with the 10-year Treasury note up 2/32 to yield ($TNX) 4.995 percent while the 30-year government bond shed 3/32 to yield ($TYX) 5.515 percent.
No data is set for release Monday. Among this week's main events: the July retail sales report, due out Tuesday; July industrial production and capacity utilization, expected to hit the wires on Wednesday; the July consumer price index, out on Thursday; and July housing starts and building permits, also due out on Thursday. and economic calendar and forecasts.
In the currency sector, dollar/yen added 0.3 percent to 121.61 while euro/dollar climbed 0.6 percent to 0.8985. |
