MARKET TALK: Intel, eBay Results Deliver Surprises
15 Jan 16:21
Edited by Gaston F. Ceron
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
4:21 (Dow Jones) Intel (INTC) results look better thn expected. The company
had 4Q revenue of $6.98 billion, down from $8.7 billion. Net income was 7 cents
a share, down from 32 cents. eBay (EBAY) results also look above views for top
and bottom lines. (GFC)
4:02 (Dow Jones) Trading ends on an up note, with preliminary figures showing
the Dow Jones Industrial Average rising 0.36% and the Nasdaq Composite Index
gaining 0.51%. (GFC)
3:57 (Dow Jones) Investors will see some big names report earnings after the
closing bell. On tap for Tuesday are results from Intel (INTC) and eBay (EBAY).
(GFC)
3:43 (Dow Jones) Robertson Stephens applauds New Plan Excel Realty Trust's
(NXL) acquisition of 92 shopping centers from CenterAmerica Property Trust for
$654M. "Given the size and potential accretion of this transaction, we believe
NXL has achieved a significant milestone in its transition to become a
large-capitalization neighborhood and community shopping center REIT." The firm
raises its rating to buy and its price target to $21 from $18.50. New Plan
shares are up 3.9%. (GS)
3:30 (Dow Jones) With 30 minutes to go in the trading day, major stock
indexes are trading higher. The Dow Jones Industrial Average is up 0.12%, and
the Nasdaq Composite Index is up 0.07%. (GFC)
3:17 (Dow Jones) Is anyone listening? Tyco International (TYC) officials have
got to be asking themselves that question as investors dump the stock
following the company's fiscal 1Q report. Management insists the quarter was
good, given the awful economic environment, and that cash flow will be strong
for the full year. But evidently that's falling on deaf ears. Investors seem
more nervous about Tyco's lower 2Q guidance. Furthermore, Tyco would have to
put together an awfully strong second half of the year to get to its $4 billion
free cash flow goal for the full year, said Jeff Graff, an equity analyst with
Victory Capital Management. Some investors may just be a bit skeptical. Tyco
shares are off 9.2%. (CCW)
3:03 (Dow Jones) Goldman Sachs starts Aramark (RMK) on its recommended list
with a $32 price target. Aramark shares are adding 71 cents to $25.11. "We are
forecasting 14% EPS growth over the next five years through rising outsourcing
penetration, cross-selling opportunities from the ServiceMaster Management
Services acquisition, international growth and deleveraging." (GS)
2:50 (Dow Jones) You might call today the eye of the storm for Federal
Reserve speakers. Guynn's done for the day, and nobody else is on tap. It heats
up again Wednesday, with Santomero, Guynn, Parry and McDonough. Some say the
tsunami of Fed chatter's no conspiracy - this is just the best time for them to
talk between the December and late January FOMC meetings. (MSD)
2:36 (Dow Jones) Lehman Brothers analyst Felicia Rae Kantor raised her price
target on Harley-Davidson (HDI) to $60 a share from $50 and kept her strong buy
rating. She said the strong performance of the motorcycle maker in a difficult
economy; its pristine balance sheet of $561.8 million in cash and no debt; and
the near-term catalyst of its 100th anniversary, warrants a premium valuation.
The analyst added that her 2002 earnings estimate of $1.63 a share could be
conservative. (DDO)
2:23 (Dow Jones) Average rate increases in commercial insurance policies are
running in a range of 20% to 40%, according to a new survey of regional
independent agents and smaller insurance brokers by Merrill Lynch. Last year,
average rate hikes were in the 13% to 18% range. Agents believe the premium
increases will last through 2003, according to the report. (CUB)
2:13 (Dow Jones) Credit Suisse First Boston analyst Amit Chopra says that
while Sun (SUNW) will likely meet his fiscal second quarter sales forecast of
$3.1 billion and earnings estimate of a loss of four cents a share when the
company reports Friday, the demand outlook for the March quarter is
"lethargic." According to the analyst, who cut his full year 2002 and 2003
earnings estimates on Sun, pent-up demand for Sun servers from the financial,
retail and federal government markets won't materialize in the near-term. Sun's
stock recently down 6%. (DLF)
2:01 (Dow Jones) All the major indexes have turned negative, putting the DJIA
in danger of its first seven-day drop since before 1999. Dow Jones is down 13,
Nasdaq is off 11 and S&P is trying to stay flat. (RJH)
1:54 (Dow Jones) Morgan Stanley Chief Economist Stephen Roach is looking to
see what country will lead the world out of its "vicious cycle of synchronous
recession" - and finds none. Roach details why Europe, Japan, Asia and China
are unsuitable for that role. That leaves "America by default." However, Roach
thinks America will experience a double-dip recession. "Even if I'm wrong and
the US recession is now over, it seems highly unlikely that the world will
enjoy the type of American-led growth impetus it got accustomed to in the late
1990s." (GS)
1:45 (Dow Jones) Employees of Enron (ENE) shouldn't be the only investors
worried about their nest eggs. As much as 75% of Willamette's (WLL) 401(k)
savings plan is tied up in Willamette stock. Of course, Willamette is no Enron,
whose now nearly worthless and soon-to-be-delisted stock has all but wiped out
the value of its employees' retirement savings. But if Willamette's potential
deal with Georgia-Pacific (GP) would be as value-destroying as many suspect,
the forest-products company's employees could stand to lose big. Fears that
such deal could open Willamette up to asbestos liability already have sent its
stock price tumbling as low as $43.40 a share, down from a high of $52.25 in
December when investors were more hopeful that Willamette would accept
Weyerhaeuser's bid. The possible asbestos taint from a G-P deal could send the
company's shares spiraling as low as $30 a share - 45% below Weyerhaeuser's
$6.1 billion all-cash offer. In that event, Willamette employees could kiss
goodbye a chunk of their retirement savings. (JAW)
1:37 (Dow Jones) Nvidia (NVDA) is up 8% after Morgan Stanley raised
FY2002-2003 EPS estimates and introduced a FY2004 target of $1.85. The firm
also raised its price target to $90. Shares are up $4.60 to $64.36. (RJH)
(END) DOW JONES NEWS 01-15-02
04:21 PM |
