MARKET TALK: H-P Starts Web Site To State Its Case
29 Jan 12:47
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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12:46 (Dow Jones) In an effort to get its viewpoint out on the proposed
merger of Hewlett-Packard (HWP) and Compaq Computer (CPQ), which has been
embroiled in a contentious proxy battle, led by Walter Hewlett, son of one of
the co-founders, H-P has launched a new Web site www.votethehpway.com. At the
site, visitors can learn about the merger benefits, catch up on the latest news
on the merger, read SEC filings, and sign up for e-mail updates on the progress
of the merger. (DLF)
12:36 (Dow Jones) Things have turned even uglier for stocks, with the Dow off
170 at 9697, Nasdaq Comp down 43 at 1900, and S&P 500 falling 22 to 1111.
Spencer Clarke strategist Michael Sheldon says a close below 9700 yields 9000
on the DJIA, and a close of less than 1850 on Nasdaq means 1700 will be next.
GE, Williams, Cendant, Tyco all getting lumped into "accounting/credit issue"
camp. Futures trader says that on a day when things should probably be headed
sideways, it looks like new shorts have taken hold. (TG)
12:28 (Dow Jones) Lehman expects EOG Resources (EOG) to announce a reduction
in 2002 capital spending, thus hurting production growth, when it reports its
4Q before the market opens Wednesday. "While we will await formal guidance
before changing our production forecast we anticipate that we may need to lower
our 2002 production growth forecast from 4.8% currently (including 4% in North
America) to a range of -2% to +3%." Such a change would force Lehman to cut its
EPS forecasts by up to 15 cents for 2002 and 2003. (GS)
12:19 (Dow Jones) It's contagious. A week after Amazon.com (AMZN) reported
GAAP profits for the first time, online travel outfit Expedia (EXPE) did the
same. The company also beat December-quarter revenue estimates on strength in
both its merchant (reselling of travel inventory Expedia buys wholesale) and
agency (sales where the company gets commissions) businesses. The agency
strength may raise questions about weakness in airline ticket sales recently
reported by rival Travelocity.com (TVLY). Expedia's pro forma income of 31c a
share was well ahead of the 10c consensus. The results prompted Prudential to
lift its rating on the stock to buy from hold. Shares recently up 8% at $54.60.
(RS)
11:59 (Dow Jones) Economic stimulus may undergo a name change in State of
Union address tonight to an economic "security" plan, according to buzz in
Washington. (JCC)
11:49 (Dow Jones) KPMG wrapped up a study looking at the cost of doing
business in nine industrial countries in North America, Europe, and Japan.
Turns out Canada is the cheapest place to do business, edging out the UK and
Italy. Germany and Japan are the most expensive, while the U.S. ranked seventh,
falling from third place two years ago in a similar study, due to rising
strength in the dollar. The study's basis for comparison is the after-tax cost
of startup and operating for 12 specific types of businesses, over a 10-year
time span. (TG)
11:36 (Dow Jones) J.P. Morgan Chase (JPM) CEO William B. Harrison Jr. says
"Enron (ENRNQ) as a financial matter has been totally dealt with in the fourth
quarter." The bankrupt-bound energy-trading company cost J.P. Morgan Chase
about $456 million in the 4Q, contributing to its 4Q loss of $332 million. "The
overhang from Enron from here is really a PR issue that we have to manage,"
Harrison said at Salomon Smith Barney's Financial Services Conference in New
York. The "issue" started when JPM said it had more exposure to the troubled
company than it had originally stated -- upwards of $1 billion more. JPM off
3.8% at $33. (TAS)
11:31 (Dow Jones) EUR now at its best levels of the day, but still short of
the $0.8665 level seen necessary to confirm a recovery, traders say. EUR/USD is
$0.8636; USD/JPY is Y133.39; EUR/JPY is Y115.23. (JRH)
11:25 (Dow Jones) The S&P 500 is closing in on some key support at the 1115
area, several technicians say. A close below that number paves the way for
downside to the 1050 range. S&P off 13 at 1120. (TG)
11:14 (Dow Jones) Things continue to deteriorate in the major stock averages
- DJIA off 90 at 9788, Nasdaq Comp down 17 to 1926, and S&P 500 off 10 at 1123.
Pipelines, consumer electronics, consumer services, diversified industrial all
taking a good hit. Of the 86 Dow Jones industry groups, less than two dozen are
moving higher. Only six of the Dow components are higher, with Merck on top.
Kodak, AmEx, Disney, GE and IBM all soft. Tyco sheds 16%. (TG)
11:01 (Dow Jones) Three companies are trading higher after their secondary
offerings. Coventry Health (CVH) sold 7 million shares at $19.50 through
Salomon, and the shares are now up to $20.90. Seachange (SEAC) sold 3.6 million
shares at $28.99 through Morgan Stanley, and they traded recently at $29.95.
FBR Asset Management (FB), which sold 4.8 million shares at $26.50 through
Friedman Billings, traded recently at $27.15. (RJH)
10:53 (Dow Jones) Cowen sees Merck (MRK) spinoff of Medco as overall positive
for the industry. Should give Caremark (CMX) an advantage based on its strong
service rating (says Medco has one of the lowest). Firm believes service, not
price, will be key determinant of future contract signings. Keeps strong buy
rating. Shares up 5.7% at $16.66. (TG)
10:42 (Dow Jones) For some reason, stocks don't seem to have liked the robust
confidence figures. There could be other factors at work, but after a very
brief blip upwards, stocks have come down noticeably since that reading. IBM is
down better than $2, and Kodak has shed 5%. Techs actually hanging in OK,
helped by TI numbers. DJIA off 55 at 9809, Nasdaq Comp eases 5 to 1938, and S&P
500 falls 5 to 1127. (TG)
10:32 (Dow Jones) After talking with management and pouring over public
documents, Prudential has some thoughts on Viacom's (VIAB) asbestos liability.
First, because of the uncertainty, firm believes the shares will continue to
react negatively to plaintiff jury awards, awards that could result in an
increased number of claims against Viacom. However, based on a host of factors,
Pru thinks the risk is manageable for Viacom, and selloff in shares as a result
of concerns would be a good chance to buy. VIAB up 1.4% at $40.19. (TG)
10:23 (Dow Jones) Remember this time last year, when the Fed cut rates by
half a point, on the heels of a surprising cut earlier in the month? Lehman
technician Jeff deGraaf does, and notes that because it was so widely
anticipated, it marked a short-term top for the market, though most people
thought the Fed was going to make the bulls' story come true. He thinks things
look similar today. "Now, consensus forecasts an "economic recovery", but this
also appears to be fully or fairly well discounted," he says. (TG)
10:17 (Dow Jones) White House Counselor Karen Hughes says President Bush, in
his State of the Union address tonight, will "talk a great deal about our
economy and about the need to create jobs here in America." (JCC)
10:03 (Dow Jones) Synaptics (SYNA) is the first IPO of the year, and, despite
a popular lore that there's some sort of jinx attached to the inaugural deal,
the numbers don't bear that out. Last year's first deal, for Peet's Coffee &
Tea (PEET), ended its first year up 39%, according to Thomson Financial. The
year before, however, was kicked off by Neoforma.com (NEOF), which was down 88%
at the end of its first year. In 1999, MarketWatch (MKTW) was the first deal
and rose 136% after its first 12 months. It trades 80% below its offering price
now, though. (RJH)
(END) DOW JONES NEWS 01-29-02
12:47 PM |
