MARKET TALK: Dollar Gets A Boost On Yen
13 Mar 15:47
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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3:46 (Dow Jones) USD took back some more ground from the JPY Wednesday, but
weaker-than-expected retail sales helped to cap gains against its other
counterparts. GE deal failed to give much a boost to the dollar, at the same
time retail sales didn't seem to knock too much wind out of its sails. EUR/USD
- yet again - failed to sustain the break above $0.8760, while Y129.65 proved
too tough a nut for USD/JPY to crack. USD/JPY 129.46, EUR/USD $0.8755, GBP/USD
1.4148. (GMM)
3:32 (Dow Jones) Principal Financial Group (PFG) expects to post a net
realized capital gain of $183.1 million in the first quarter following the sale
of its stake in Coventry Health Care (CVH). Principal said on Feb. 1 it sold
its holdings of 15.1 million shares and a warrant exercisable for about 3.1
million shares of Coventry common stock. Total estimated proceeds from the
transaction are $325.2 million. (DH)
3:13 (Dow Jones) Prudential's Mike Mayo points out that Citigroup's (C) 10-K
includes a new warning about asbestos-related losses. "During the last few
months of 2001 and continuing into 2002, the asbestos-related trends...have
both accelerated and become more visible," the filing says. "In addition, these
claims and the related litigation could result in liability exceeding these
(asbestos) reserves by an amount that could be material to our operating
results in future periods." Mayo notes that asbestos-related losses at Citi's
insurance unit will continue to impact the company even after the spinoff. C
off 2.7% at $47.97. (TG)
2:55 (Dow Jones) Using Office of Management and Budget instead of
Congressional Budget Office budget numbers reduces the projected fiscal 2003
deficit under a Republican budget plan by $40 billion, said Dan Kowalski,
budget director for the House Budget Committee. CBO figures, he said, would
have shown an $80 billion deficit rather than one for $46 billion. (MHA)
2:39 (Dow Jones) Omega Advisors' Mark Brennan, a portfolio manager at the
hedge fund, said if you know him for five minutes, you know his favorite stock
is New York Community Bancorp (NYCB), a $9.2 billion-asset thrift based in
Flushing, N.Y., pointing to its stellar credit performance. Brennan, speaking
from the Financial Services Analysts Association's conference at Manhattan's
Plaza hotel, said he also liked White Mountain Insurance Group (WTM), a New
Hampshire-based insurance concern. (TAS)
2:22 (Dow Jones) Following Goldman Sachs' cautious comments on Microsoft
(MSFT) Tuesday, SG Cowen warns that some Street estimates for the software
giant's FY03 might have to be reduced. SG Cowen predicts FY03 EPS of $2.00.
First Call says the current EPS consensus is $2.03 with forecasts ranging from
$1.85 to $2.18. Thomas Weisel, which projects FY03 EPS of $2.04, says
management will provide a "glimpse" into FY03 at the 3Q earnings conference
call slated for April. MSFT off 0.4% at $62.31. (MLP)
2:10 (Dow Jones) Stocks act poorly, and a comeback this afternoon may be too
much for the bulls to ask for. Only a dozen or so groups are moving up - none
significantly - while mining, semis, paper products, communications tech, and
wireless are leading slumpers. The softness is blue chips is somewhat
understandable - they've had a nice run - but tech is showing little sign of
life. DJIA off 128 at 10504, Nasdaq Comp falls 33 to 183, and S&P 500 sheds 11
to 1154. SOX drops 4.3%, and Intel is off 5.4%, the worst performer on the
DJIA. (TG)
1:56 (Dow Jones) Economic activity is "beginning to firm," says Fed chief
Greenspan, in a speech that's mostly about social security. This economic
assessment is similar to the one he gave almost a week ago. (MSD)
1:45 (Dow Jones) On Tuesday, advancing issues on the NYSE hit 1539, while
decliners totaled 1616.Arnhold & S. Bleichroeder's John Roque says it was the
first session since Feb. 21 that decliners topped advancers, and the prior 12
days in a row of advancing stocks topping declining stocks was a string of
unprecedented consecutive wins going back to mid-July 1992. "So we figure that
the likelihood of the recent advance continuing unabated is unlikely," he says.
(TG)
1:31 (Dow Jones) Read his lips on e-mail. A fairly common e-mail hoax came up
at a press briefing with the Senate Majority Leader Wednesday when a media
editor fell for the phony e-mail that claims Congress is set to tax e-mail
traffic. Leader Daschle, D-S.D., waded boldly into the issue, stating between
laughter: "There isn't a chance ever that you will tax e-mail messages - ever,
ever. Read my lips." (MHA)
1:17 (Dow Jones) A mid-session options snapshot: Defensive puts trading a lot
more busily with today's stock slide than during any of the pullbacks this
month; maybe caution is returning after a long spell of bullishness. At the
CBOE, the ratio of equity puts traded to calls rose to 0.72 - higher than
anytime so far this month, which had mostly seen readings between 0.47 and
0.55. The put/call ratio for index options also is up to 1.64, compared with
1.32 Tuesday and 0.90 Monday. (KT)
1:01 (Dow Jones) Outplacement firm Challenger, Gray & Christmas says college
grads should be given cell phones, gift certificates for pre-interview
manicures and hair cuts, shoe-polishing kits and joke books, to make it through
the tough process of finding that first job. (MSD)
12:43 (Dow Jones) Latest IT spending survey from Goldman Sachs shows the belt
tightening continues during the first two months of the year, though to a
limited extent. While IT managers have extensive wish lists, a robust spending
rebound, even in the second half, seems increasingly unlikely, the firm says.
(TG)
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 of the 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)
(END) DOW JONES NEWS 03-13-02
03:47 PM |
