MARKET TALK: When Economy Turns, FedEx Will Deliver
06 Feb 09:07
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
9:07 (Dow Jones) ABN-Amro keeps add rating on FedEx (FDX), saying all three
of company's major divisions are well positioned to benefit from pending
economic turnaround. With Tuesday announcement of expansion of home delivery
operations, ABN-Amro says the company can now cover 90% of the U.S. population.
(TG)
8:55 (Dow Jones) Good productivity numbers are boosting the buck Wednesday,
while rotten jobs numbers harm the EUR, analysts say. EUR is $0.8634; USD/JPY
is Y133.52; EUR/JPY is Y115.31. (JRH)
8:49 (Dow Jones) Morgan Stanley recently spoke with 10 major customers of
Electronic Data (EDS), who indicated that EDS has improved its operational
execution and client communications and has become better at identifying and
recommending value-added outsourcing projects. Morgan Stanley is a little more
positive on EDS' competitive position, but is still concerned about long-term
cash flow generation. Keeps neutral rating. (TG)
8:41 (Dow Jones) The jump in 4Q productivity has helped prompt some light
selling in Treasurys. It was as good an excuse as any to get an early start on
preparations for the 10-year note auction, but stocks remain the wildcard for
the bond market today. (SV)
8:37 (Dow Jones) With Lehman Brothers (LEH) employees heading back to formal
attire, staffers at other investment banks are hoping their firms don't follow
suit (no pun intended). Though some shops say they aren't scrapping their
casualwear policies, follow-the-leader is a game Wall Street plays well. Will
khakis become another casualty of the dot-com era? Gap (GPS) certainly hopes
not. (CWM)
8:36 (Dow Jones) Nonfarm productivity rose by a strong 3.5%, reminiscent of
the best quarters of the 1995-2000 productivity spurt. As a result, unit labor
costs- compensation less productivity - fell by 1.1%. This negates any
inflationary pressure if there had been any. More important, it opens some room
for an increase in profitability. (JM)
8:30 (Dow Jones) Two disappointing sessions may pave the way for some
firmness in stocks Wednesday. Pepsi (PEP) hits views, while someone at Cisco
(CSCO) made a booboo that essentially forced the company this morning to say 2Q
results, to be released in full after the close, topped expectations. Why not
just release it all now, you ask? Probably too late to get the conference call
arranged. More blues for the Emerald Isle - as shareholders there cope with the
Elan (ELN) fallout, Allied Irish (AIB) is dealing with fraud, though the
misdealing took place in the U.S. Stocks look flat now, as do Treasurys. (TG)
(END) DOW JONES NEWS 02-06-02
09:07 AM |
