MARKET TALK: U.S. Imports Continue Decline
11 Mar 10:04
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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10:04 (Dow Jones) Wholesale inventories fell by 0.2% in January compared to a
0.5% decline in December and a 0.3% consensus expectation. A large portion of
wholesale inventories - particularly autos - are imports, so, this signals
further downward pressure on U.S. imports, but much less than in 4Q. Inventory
liquidation remains a drag on GDP growth, but also less so than in 4Q. (JM)
9:59 (Dow Jones) The volatile stock market continues to draw more investors
who want to help manage their stock portfolios with options, and the
educational effort is coming to Philly: On March 20 and 21, the Options
Industry Council and the Philadelphia Stock Exchange are holding options
seminars - one introductory, one intermediate. Both are free, but investors
must register at the OIC website www.888options.com. (KT)
9:48 (Dow Jones) Salomon Smith Barney analyst Jonathan Rosenzweig downgraded
Macromedia (MACR) to outperform from buy, after upgrading the stock to buy from
neutral on Feb. 21. The maker of software used to create Web content is on the
cusp of a key product upgrade cycle, but the recent stock price appreciation
has tempered the risk/reward profile of Macromedia, he said. MACR off 8% at
$18.82. (DDO)
9:41 (Dow Jones) With the yen's bounce last week going far further than
expected, traders see the pair starting to move back toward Y130, with Y135 the
key medium-term target for resumption of the long-term uptrend. EUR is $0.8758;
USD/JPY is Y128.09; EUR/JPY is Y112.20. (JRH)
9:33 (Dow Jones) A few thoughts from Merrill's Global Tech Strategist, Steve
Milunovich: 1) CIOs are shifting out their expectations for a spending recovery
from the second half to 2003; 2) more Hewlett-Packard (HWP) and Compaq (CPQ)
users are against than for the merger;3) IBM is gaining share; 4) Sun Micro's
(SUNW) momentum has waned, though users are not running for the exit; 5) Dell
Computer (DELL) has the best sales and service force. (TG).
9:21 (Dow Jones) Morgan Stanley says it's learned its lesson - Take profits
in commodity stocks when commodity prices are still rising and estimate
revisions are positive. That's why the firm cuts Louisiana-Pacific (LPX) to
neutral from outperform despite its feeling that LPX shares will trade higher
if lumber prices continue to rise. "Waiting to sell until commodity prices have
peaked and have begun to roll over is typically too late. Liquidity will dry up
and share prices can fall sharply. Our goal is to be exiting shares like LPX
'early' while there is still 'money on the table."' (GS)
9:13 (Dow Jones) Salomon Smith Barney's Steven Wieting says, "The Fed should
not be feared" with economy below trend and Fed working very hard to restore
it. (JCC)
9:09 (Dow Jones) Eaton (ETN) should see improving fundamentals in all of its
businesses as it exits 2002, except in its smallest, Trucking, Prudential says.
As markets improve, earnings should accelerate because of above market revenue
growth potential, improved cost structure, and lower debt levels. Firm ups
Eaton to buy, 12-month target is $105. ETN closed Friday at $83.47. (TG)
8:59 (Dow Jones) Sad to say, but there's big business in defense today, and
underwriters will bring yet another defense company to market after the close.
Anteon International, which makes technology for the defense and intelligence
sectors, raised the range for its IPO of 12.5 million shares to $17 to $18 a
share, from $15 to $17. Goldman is bringing the deal, which will be the third
defense IPO this year. (RJH)
8:51 (Dow Jones) Banc Of America's Tom McManus cuts stock weighting to 50%
from 55%, lifting bonds to 45% from 40%, while cash remains at 5%. This isn't
the dawn of a new bull market, he says - it's the extension of an old one.
Valuations arenow full, and require investors to "'buy in" to the idea of a
robust economic recovery this year, which he doesn't see. Cuts 12-month target
on Nasdaq to 2250 from 2350. (TG)
8:43 (Dow Jones) Sentiment, the lack of a bust phase in this economic cycle,
and advance/decline readings leave Lehman's Jeff deGraaf believing the latest
strength in stocks is not a new bull market, but a bullish leg worth playing.
He's believed for some time that what would put a lid on the market would be
sentiment. Current readings do not resoundingly endorse a new bull market, and
while not an immediate concern - momentum is likely to overtake deteriorating
sentiment at this point - it does suggest to him a limit to the strength in
stocks. (TG)
8:34 (Dow Jones) Cisco (CSCO) may be attempting to replace Juniper Networks
(JNPR) as a supplier of wireline solutions to Ericsson (ERICY) in 3G, industry
sources tell Dresdner Kleinwort Wasserstein. The firm, though, doesn't see it
happening. "While we view Cisco's balance sheet as an asset as vendor financing
becomes increasingly important for 3G operators, we do not assign a great
possibility of success to Cisco unsettling Juniper's long-standing alliance
with Ericsson." (GS)
8:30 (Dow Jones) A stock market being driven by hopeful signs of an economic
turnaround won't have a lot of data to turn to Monday, with a look at wholesale
inventories, from back in January, the only reading on tap Monday. Equities are
looking a little soft at the moment, though the near- and medium-term trend is
looking up, a growing number of observers say. On a fairly light news day, so
far, Qwest (Q) is providing some of the more notable news, hearing from the SEC
about the voluntary production of documents related to its financial
statements. In the ongoing Hewlett-Packard (HWP)/Compaq (CPQ) drama, Calpers
says it will be a 'no' vote, a blow of some significance to H-P. Oil names may
be worth a look, too, given increasing talk of attack on Iraq. (TG)
(END) DOW JONES NEWS 03-11-02
10:04 AM |
