MARKET TALK: Sandler's Financial Stk Focus List Returns
13 Mar 10:30
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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10:29 (Dow Jones) In another sign that business is getting back to normal
after the terrorist attacks, Sandler O'Neill has restarted its Financial Stock
Focus List. Publication of the list first began in January 2001, but was halted
after Sept. 11, when the company lost 66 of its staff in the disaster. The firm
has since reinstated coverage on 112 of the 140 companies it previously
covered. (CWM)
10:24 (Dow Jones) Merrill says Calpine's (CPN) restructuring of its gas and
steam turbine program had been anticipated by GE, and Calpine appears to be the
last of GE's major customers to restructure their orders. However, some may
restructure again, and if that happens, GE may be missing more in 2003 Power
Systems operating profit than the $1 billion it expects to be down vs. 2002. GE
off 1.5% at $40.47. (TG)
10:09 (Dow Jones) The NBER notes in release on its website that with the
gains in the February payrolls data, "other signs indicated that the decline in
activity that began last year may be coming to an end." But it warns that it
won't be making any decision about dating the end of the recession "for many
months." (MSD)
10:03 (Dow Jones) Banc of America ups Nike (NKE) price target to $73 from
$65, saying it remains confident in 3Q prospects. Firm says its sales and gross
margin views may prove to be conservative, with operating margins possibly
revisiting the 1990s peak. Management seems focused on fiscal discipline, and
if Nike does move toward those margin levels in larger increments than BAS
currently models, there is potential EPS upside over next 18-24 months. NKE up
1.5% at $59.34. (TG)
9:54 (Dow Jones) EUR/USD's move to $0.8770 marks third attempt to move
sustainably through $0.8767 over the last three days. A break"will eye
$0.8820," says Tim Mazanec, at Investors Bank & Trust. Trade looks pretty
choppy though and EUR can't seem to move above $0.8771 for now. EUR/USD
$0.8765, USD/JPY 1129.43. (GMM)
9:39 (Dow Jones) The National Venture Capital Association is coming out
swinging against Congressional proposals that would require companies to
expense stock options. Start-ups would be hurt most, the group says, because
they "rely on employee stock options to attract top talent to take the inherent
risks associated with working for start-up enterprises." (RJH)
9:33 (Dow Jones) What the retail sales report does is suggest that "it may
take a while for spending to reach a consistently strong pace as the economic
recovery unfolds," notes Anthony Karydakis at Banc One Capital Markets. (MSD)
9:21 (Dow Jones) JP Morgan's trimming of Intel (INTC) 2Q EPS views to 11c
from 14c and 2002 to 60c from 69c comes after recent channel checks in Asia.
Firm now believes Intel will drop prices on current lineup of P4 processors by
50% through two consecutive cuts, one in April and one in May. JP Morgan
believes continued pricing pressure is a strong indication of relatively
sluggish unit demand and ongoing competitive pressure from AMD. Also, PC sell
through in Asia during the Chinese New Year season was not as good as
anticipated. JP Morgan says shares could retest the mid-to-high $20 range
during 2Q, and suggests trimming near-term positions. Rated long-term buy. (TG)
9:10 (Dow Jones) Retail sales data at this point are looked to by economists
for signs that the consumer is simply holding up after what's been a remarkable
run for the sector. These data shouldn't be a problem in that regard. Recovery
scenarios all count on continued consumer strength, but require an uptick in
business investment to determine the magnitude of the rebound. (MSD)
9:02 (Dow Jones) Wall Street underwriters will be watching a secondary
offering from United Auto (UAG) closely. United Auto, which owns car
dealerships, sold 6 million shares at $22 each through Bear Stearns and Banc of
America. The deal is expected to give some indications about demand for an IPO
that's expected after the close for car retailer Asbury Automotive, which is
selling 7.7 million shares at $15 to $17 a share through Goldman and Merrill
Lynch. (RJH)
8:50 (Dow Jones) Retail sales were quite mixed. At the strong end were sales
of furniture (up 1.5%) and appliances (up 1.1%). Weaker were food stores (down
0.2%), clothing (down 0.1%), and gasoline stations (unchanged). Maybe,
Americans furnished their houses and didn't eat, drive, or wear new clothes.
More likely, prices for food, clothing and gasoline declined in February,
holding down sales. (JM)
8:45 (Dow Jones) UBS Warburg brings down Microsemi (MSCC) price target to $25
from $40, citing relative valuation pressures among comparable semiconductor
peers, and also on uncertainties surrounding the company's restructuring of its
worldwide sales organization. To UBS' knowledge, general business trends remain
unchanged from its recent update on March 4, when UBS said the March quarter
was tracking as expected. MSCC closed at $20.20 on Tuesday. (TG)
8:37 (Dow Jones) The ex-auto category of retail sales (up 0.2%) is especially
important because it goes directly into the consumption spending component of
GDP. It was up 1.2% in January, which had pointed to strong consumption in 1Q.
Consumption is still increasing but at a less exuberant rate than had been
recently assumed. (JM)
8:34 (Dow Jones) No upside surprise here. Retail sales rose a
less-than-expected 0.3% in February. But the report does show that consumers,
which account for two-thirds of economic growth, are still spending. Retail
sales were expected to rise by 0.8%. Stock futures losing ground on number.
(JCD)
8:30 (Dow Jones) The early portion of Wednesday trade will be dominated by a
look at February's retail sales. Scratching out autos, the number is supposed
to look like a 0.7% gain, but Treasurys are selling off on talk in that market
that sales were a bit better than that estimate - not a stretch given the
supportive behavior of the American consumer. Albertson's (ABS) easily topped
quarterly views, while TRW says Northrop's (NOC) offer won't cut it. Right now,
things in equities are looking up, led by the DJIA, which once again turned a
sour morning into a mildly positive close on Tuesday. (TG)
(END) DOW JONES NEWS 03-13-02
10:30 AM |
