Private market update. Not for resell.
*Information in this letter is from sources considered reliable.
Accuracy/completeness not
guaranteed nor is the content to be deemed an offer/solicitation for a
sale/purchase of
securities.
Good Morning! It's Thursday, October 04, 2001.
BONDS: Treasuries are up after the government reported jobless claims
increased, a sign that the economy is still not on the rebound. The number
of Us workers filing new claims rose to a nine-year high of 528,000 last
week as economic damage spread from the terrorist attacks, the Labor Dept.
said.
Initial jobless claims rose by 71,000 n the week ended Sept. 29. Firings
are occurring in industries other than just travel and tourism amid worries
that consumers and businesses will retrench after the violence. Tipping the
economy into recession this quarter.
On Tuesday, the Fed said that the economy may remain weak, prompting
traders to add to their bets in the overnight rate (Fed funds) futures
market, for a t least one more quarter point cut by year-end. To repeat
from yesterday, of the 25 primary dealers, 13 are calling for one or more
cuts by year-end that would take the Fed funds target rate to 2.00%.
In a separate report this morning, Factory Orders were reported to be up
0.1%, vs. an expectation for a decline of 0.3% and against last months
number of a decline of 0.1%.
At the moment, the long bond is up 2/32s at 5.287%. The ten-year note is up
5/32s at 4.446% and the two-year is up 3/32s at 2.693%.
EQUITIES: Stocks are generally up this morning following some positive
earnings comments from Dell Computer. Dell said it would meet sales and
profit estimates for the fiscal 3Q ending Nov. 2. Cisco Systems, which gave
a similar statement yesterday, is also up. DELL said it expects to earn 15
cents in the quarter, the same as estimated 30 days ago, before the Sept.
11 attacks. DELL is currently up 1.47 at 22.11.
Continental Airlines is reducing business travel fares on tickets bought 32
days in advance by as much as 50%, and 10-day advance purchases by as much
as 25% after passenger numbers sank following last month's terrorist
attacks. The offer applies to travel completed by Dec. 31 and requires a
round trip booking. They are also offering double miles for frequent fliers
through Nov. 15. (What is this, a commercial for Continental?) CAL is down
0/87 at 18.45.
Boeing Co. said it delivered 120 jetliners in the 3Q, 19 fewer than it
expected before the Sept. 11 attack. Boeing said it's on course to deliver
500 for the year, about 38 less than its initial forecast. BA is down 0.68
at 35.91
Corning Inc. the maker of fiber optic cables, said 3Q profit was between 2
and 6 cents a share, excluding certain costs. It was expected to earn 12
cents. The company forecast a 4Q loss and announced 4,000 additional job
cuts. The company will take charges of as much as $1 billion this year to
account for its cost cutting measures. GLW is down 1.11 at 7.89.
Neiman Marcus Group Inc. the owner of the Neiman Marcus and Bergdorf
Goodman chains said fiscal 1Q profit will be lower than expected as same
store sales fell 20% in Sept. The company had been forecast to earn 61
cents. NMG/A is down 0.91 at 25.65.
UAL Corp. the airline company, will end its West Coast low-fare United
Shuttle service on Oct. 31 because of lower demand after the Sept. 11
terrorist hijackings. United Shuttle, which began seven years ago, will be
folded into UAL's United Airlines and its United Express commuter unit
flown by partner carriers. UAL plans to keep service in almost all the 22
shuttle markets, though it declined to say how many. UAL is currently down
0.25 at 19.08.
MSFT is currently up 0.35 at 56.57.
At the moment, 7:30 am PDT, the Dow is down 8 at 9115. The Nasdaq is up 25
at 1606 and the S&P 500 is up 1 at 1073. |
