MARKET TALK: Sleepy Day Ends With Blue Chips Higher
14 Mar 16:04
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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4:03 (Dow Jones) A forgettable day for the stock market, not so for
just-indicted Arthur Andersen. Techs slump again, though that group may in
large part be swayed by an upcoming profit report from Oracle. After the recent
run up in blue chips, there'd be no problem in the eyes of the bulls if they
just took some time to consolidate, and then headed up again. Big data Friday
could make for interesting morning. DJIA edges up 15 to 10516, Nasdaq Comp
eases 8 to 1854, and S&P 500 off 1 at 1153 (preliminary). Treasurys hammered.
(TG)
3:45 (Dow Jones) The dollar came under pressure from the euro and yen
Thursday, but was able to contain its losses in a market still clearly
searching for direction. But, analysts say they are starting to lose confidence
in the dollar's ability to rally from current levels, with doubts over the
strength of the U.S. recovery underlined by Wednesday's comments from Federal
Reserve Chairman Alan Greenspan, which seemed to avoid some of the upbeat
language he used just a week ago. EUR is $0.8817; USD/JPY is Y129.23; EUR/JPY
is Y113.97. (JRH)
3:31 (Dow Jones) Despite Talbot's (TLB) conservative comp guidance and
weaker-than-expected reception to its Spring III catalog, Wedbush Morgan still
likes the stock, particularly for longer-term investors. The company's reliable
earnings performance, new concepts and distribution channels, and its in-depth
knowledge of its target customer leaves Wedbush encouraged. Reiterates buy, $42
target. Shares up 1.8% at $35.93. (TG)
3:17 (Dow Jones) There is "wholesale liquidation" of Treasurys taking place,
and flows are all "one way," notes one trader. He adds that it may be a "good
time to leave for a long weekend." The two-year yield is up 13 BP to 3.59%,
while the long bond is up seven BP to 5.82%. (MSD)
3:07 (Dow Jones) Labor Department Thursday announced the transfer of $8
billion to state unemployment insurance trust funds from excess funds in the
federal unemployment accounts. The distribution was authorized by the
newly-enacted stimulus measure. (JCC)
2:53 (Dow Jones) There's relatively little in the way of big corporate news
and trading activity is generally sluggish (is everyone watching hoops?), but
Friday's action may be more lively. For starters, Oracle's (ORCL) numbers out
tonight may play a role tomorrow, and tacking on readings on producer prices,
capacity utilization, industrial production, and an early look at March
consumer sentiment tomorrow morning could make for some excitement. DJIA up 20
at 10522, Nasdaq Comp eases 6 to 1855, and S&P 500 flat at 1153. (TG)
2:43 (Dow Jones) Hilton (HLT) up 3%. Salomon says upgrade comes on relative
valuation, significant leverage, lodging fundamentals that keep improving,
better communication, and improving operating performance. Price target is $17.
HLT up 41c at $13.65. (TG)
2:31 (Dow Jones) In resolution adopted by its board, NAM calls for a change
in US dollar policy. Group urges Bush Administration to adopt a sound dollar
policy and to consider actions to enable dollar and other currencies to move
toward their equilibrium rates. "The overvalued dollar has led to a substantial
reduction in exports of U.S. manufactured goods, and a consequent loss of
manufacturing jobs, for the last year and a half," says NAM Prez Jerry
Jasinowski. (JCC)
2:19 (Dow Jones) Many on the Street have lauded drug giant Pfizer's (PFE)
2000 merger with Warner-Lambert. So it is not surprising when the drug giant
has received praise for taking steps to ensure smooth integration, cost cutting
and synergies at the world's largest drug maker as a result of multibillion
merger. This time, the accolades come from the University of Pennsylvania's
Wharton School and international executive searchfirm Spencer Stuart, which
awarded the sixth annual "Board of Excellence" to the directors for their
measures to ensure the merger's success. (BMM)
2:05 (Dow Jones) Salomon Smith Barney's Louise Yamada says the 690 level on
the S&P Bank index would mark a breakout, while support rests at 658-660. The
technical analyst says intermediate-term momentum models are bullish, and a new
high in relative strength also appears imminent. The BIX is currently at 677.
Among technically attractive bank names, she mentions: Associated Bancorp
(ASBC), Compass Bancshares (CBSS), First Virginia (FVB), Hibernia (HIB),
Sovereign Bancorp (SOV), Anchor Bancorp Wisconsin (WBCW), First Republic (FRC),
Hudson United (HU), MAF Bancorp (MAFB), and Whitney Holding (WTNY). (TG)
1:51 (Dow Jones) The upstart electronic options exchange, the International
Securities Exchange, today traded its 100-millionth option contract. So is
there a pattern here? The New York exchange traded its 25-millionth contract
one year after its May 2000 launch, its 50-millionth contract four months after
that, its 75-millionth contract three months later and the 100-millionth
another two months after that. It took the other exchanges far longer than two
years to reach this 100-millionth mark, but to be fair that was a long time ago
and an entirely different era. Still, the ISE is the only one among the five
U.S. option exchanges whose trading volume is rapidly improving. (KT)
1:40 (Dow Jones) Lehman Brothers managed the placement of 47 million new ADRs
from Taiwanese chip-maker United Microelectronics (UMC) on Thursday. The
company had announced earlier Thursday that its board approved issuance of
171.1 million new shares for distribution as employee bonuses and a 15% stock
dividend. UMC off 5.4% at $9.22. (SR)
1:24 (Dow Jones) Lehman technician Jeff deGraaf notes the Investors'
Intelligence numbers show an increase in bullish sentiment. Bad news for the
contrarians, right? Not so fast. He also notes thatthe percentage of bearish
respondents is also up. That's significant "because the bear numbers tend to be
more important than the bulls in determining euphoria in the market," he says.
(TG)
1:09 (Dow Jones) Thomas Weisel initiated coverage of environmental services
space with a market weight rating, putting market perform ratings on
solid-waste giants Waste Management (WMI) and Allied Waste (AW). Why the lack
of enthusiasm? Analyst Kevin Monroe counts the ways: mixed fundamentals,
historically high valuations and sector underperformance in periods of economic
growth. However, Monroe is partial to the medical waste management and
filtration sectors, which could benefit from aging population, increased
regulation and other trends. Stericycle (SRCL) and Pall (PLL) get buy ratings.
(CCW)
12:55 (Dow Jones) A new e-mail virus, likely originating in Japan, ripped
through Asia overnight and then hit the United Kingdom and the United States as
new business days began Thursday. Dubbed "Fbound.C" by anti-virus companies,
the virus is responsible for the biggest outbreak so far this year. Fbound.C
causes no damage other than clogging up e-mail servers. It spreads by mailing
itself out to everyone in a victim's Outlook e-mail address book if he clicks
on its attachment, patch.exe. The infected message carries a subject line with
one of a number of randomly generated Japanese phrases but, occasionally, reads
"important" in English. No text appears in the body of the message. (RR)
(END) DOW JONES NEWS 03-14-02
04:04 PM |
