MARKET TALK: Lehman Looks For More Upbeat Data
13 Mar 12:31
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
12:30 (Dow Jones) Lehman expects total and core PPI figures, to be released
Friday, to rise 0.1% in February. Predicts that industrial production index
will rise for first time since July, creeping 0.2% higher in February. Capacity
utilization rate likely higher, to 74.4% from 74.2%, well below 82% figure
usually associated with inflation pressures. Believes that consumer sentiment
index will move higher in early March, to 92.0 from 90.7 in Feb. (MCG)
12:18 (Dow Jones) After getting the lowdown from 99 slot floor managers,
Goldman Sachs analyst Steven Kent concluded that a bullish case for slot
machines makers can still be made. Shares of International Game Technology
(IGT) and Alliance Gaming (ALLY) should continue to outperform as the
replacement cycle for machines on casino floors continues to accelerate and
cashless gaming continues to gain penetration. (DDO)
12:08 (Dow Jones) GE Capital's massive $11B bond issuance certainly throws
water on the argument that the Enron (ENRNQ) effect has dampened interest
across-the-board in corporate bonds. Deal was reportedly largest ever triple-A
issuance by U.S. company and given that it saw $16.5B in total interest,
suggests demand for good quality corporate debt is as healthy as ever. This all
bodes well for the USD, particularly as M&A flows to U.S. have tanked. (GMM)
11:54 (Dow Jones) About 10.8 million stock options that Monsanto (MON) issued
to employees and directors through March 2001 that have an exercise price
averaging $20.38 a share can be exercised beginning Friday. Between October
2000 and March 2001, the company issued to employees and directors about 22.7
million options through one-time "founders' grants" in connection with its IPO
and other option programs. Fifty percent ofthe options vest Friday, while the
rest vest mainly on March 15, 2003, the filing said. Monsanto options issued as
"founders' grants" have an exercise price of $20. MON up 1.3% at $31.68. (CS)
11:46 (Dow Jones) The 24% decline in the MBA refinancing index for the week
ended March 8 has not fully reflected the 15-20 BP increase in mortgage rates
that week, Salomon Smith Barney says. Firm expects further decline in refi
activity next week. (JSX)
11:40 (Dow Jones) At 1.75%, fed funds is "100 basis points too low" given
"current fundamentals," say analysts at Bank of America in NY. "The quicker the
Fed takes back some of the 'emergency easing' the better off the long end of
the curve will be." (MM)
11:36 (Dow Jones) Citigroup (C) expects higher net credit losses across most
of its business lines due to the weakening global economy. Citigroup said net
credit losses in its Citi Cards business will increase over 2001 as a result of
continued economic weakness, including rising bankruptcy filings and delinquent
loans. Citi Cards managed loans delinquent 90 days or more were $2.135 billion,
or 1.98% of loans, at Dec. 31, 2001, compared with $1.497 billion, or 1.46%, at
Dec. 31, 2000. C off 1.6% to $48.52. (DH)
11:21 (Dow Jones) Arthur Andersen resigned as TheStreet.com's (TSCM)
independent accountant following comments made by Director James Cramer about
Arthur Andersen and its chief executive. "This has been directly caused by what
we believe to be inappropriate public comments about our chief executive
officer and our firm made by a member of your board of directors," Arthur
Andersen said in a letter to TheStreet CEO Thomas Clarke. Arthur Andersen said
it's unable to continue to work with TheStreet.com in a "cooperative manner"
due to the comments about Andersen CEO Joseph Berardino made by Cramer during
CNBC's "America Now" show, which Cramer co-hosts. In a letter to Andersen,
Clarke said, "having worked with us for some time, surely Andersen could not
imaginewe would be willing to (or even capable of) controlling the public
utterances of Mr. Cramer, a journalist and television personality." (CD)
11:07 (Dow Jones) The early weakness in stocks is similar to what we've seen
so far this week, only this time there's actually something to explain it: the
softer-than-expected retail sales numbers caught Wall Street by surprise. Even
though the consumer is still shopping, just an early hint of a slowdown will
worry economy watchers, who still haven't seen enough of a pickup in business
spending and end-market demand to feel comfortable. Of course, we'll soon be
coming up on the time of day when stocks have decided to perk up. DJIA off 66
at 10566, Nasdaq Comp eases 20 to 1877, and S&P 500 off 7 at 1158. (TG)
10:54 (Dow Jones) Moody's says it will rate Computer Associates (CA) proposed
$500 million convertible notes Baa2. The outlook is negative, which reflects
cash-flow and refinancing concerns, and uncertainty surrounding investigations
by the SEC and the U.S. Attorney's office, Moody's says. (JD)
10:43 (Dow Jones) Mom always said, "Don't say anything about someone if you
can't say anything good." The paper sector would love it if Prudential analyst
John Tumazos heeded such motherly advice. Tumazos initiated coverage of paper
and forest products with an underperform rating, showering hold ratings on pile
of stocks such as Georgia-Pacific (GP) and Weyerhaeuser (WY). "Strong dollar,
foreign competition, very high debt levels, electronic substitution, and rising
postal rates undermine 'bullish consolidation thesis,"' said Tumazos, who sees
the paper group growing 1.0% to 1.7% over the long term and wood at 1.5%. (CCW)
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)
(END) DOW JONES NEWS 03-13-02
12:31 PM |
