Market Coverage
· Market Overview
· Market Update
· In Play®
· Story Stocks
· Short Stories
· Tech Stocks
Market Events
· Earnings Calendar
· Economic Calendar
· Splits Calendar
· Conference Call Calendar
· IPO Calendar
· Upgrades/Downgrades
Market Statistics
· Market Digest
· U.S. Market Indices
· World Market Indices
· Currency Exchange Rates
Latest Updates Add to My Yahoo!
11:51AM Reliant Resources placed on review by Moody's (RRI) 10.06 -1.94: -- Update -- Moody's places co's Baa3 senior unsecured issuer rating and Prime-3 commercial paper rating on review for potential downgrade.
11:44AM CIBER inks $20 mln deal with FDIC (CBR) 6.91 +0.25: Announces the Federal Deposit Insurance Corp has awarded CBR a 5-year, $20 mln contract to help develop a full range of information systems and data warehousing services to improve the collection, management, and reporting of financial institution data.
11:31AM QLogic Intraday (QLGC) 47.74 +1.56: -- Technical -- Stock has edged above its 50-day simple moving average of 47.16 and is trading towards its best levels of the day. Look for initial resistance at 48.00 followed by more important overhead at 48.50. To the downside, watch for initial support just over 47.50.
11:30AM S&P to announce new standards for calculating earnings -- WSJ : According to a story in this morning's Wall Street Journal, Standard & Poors is expected tomorrow to announce new standards for calculating operating results. The most controversial of S&Ps new standards would treat employee stock options as a quarterly expense against earnings. Using the definition of core earnings that S&P has just developed, the P/E of the S&P 500 would rise to 30x estimated 2002 earnings vs 22x under the old method.
11:30AM Reliant Resources resumes trading (RRI) 11.30 -0.70: -- Update --
11:29AM Reliant Energy resumes trading (REI) 18.01 -3.44:
11:21AM THQ Inc Intraday (THQI) 34.20 +0.42: -- Technical -- To this point in the session, stock has managed to hold its 50-day simple moving average at 33.56. Currently trading towards its best levels of the day, look for modest initial resistance at 34.25 followed by more significant resistance at 34.55 and 35.00. The favorable intraday tone would be placed in question on a failure to hold intraday support in the area of 34.00.
11:17AM Stanley Works clarifies guidance (SWK) 43.06 -0.49: Company updating guidance in light of recent decision to conduct a revote relative to its proposed reincorporation. Expresses confidence that Q2 earnings will post between $0.71 and $0.73. SWK also reaffirmed full yr 2002 guidance of $2.72-$2.81 (with a bias toward the upper end of that range). The guidance excludes any benefit from reincorporation.
11:11AM JDS Uniphase falls to new 52-week low (JDSU) 3.65 -0.13:
11:07AM EMC says ITC to investigate its patent claims (EMC) 7.66 +0.21: Announces that the U.S. International Trade Commission has voted to launch a full U.S. Government investigation into claims filed by EMC's on April 11 of patent infringement against Hitachi Data Systems and Hitachi Ltd. EMC is requesting that the U.S. government exclude Hitachi's infringing products from the U.S. market.
11:04AM Reliant Resources reports that "round trip trades" boosted revs by 10% (RRI) 12.00 halted: -- Update -- Announces its preliminary findings of its review of power trading transactions involving simultaneous purchases and sales with the same counterparty at the same price. Believes that trades had the effect of increasing revenues by about 10% over 3-yr period. RRI is calling a "time out" to reassess its mark-to-market trading activities.
10:44AM New 52-Week Lows : Dynegy (DYN 9.25 -0.63)... Cablevision Systems (CVC 21.21 -1.19)... CMS Energy (CMS 16.18 -3.11)... Telephone and Data Systems (TDS 78.90 -1.10)... WorldCom (WCOM 1.51 -0.07)... Nortel (NT 2.40 -0.30)... US Airways (U 2.48 -1.12).
10:44AM Applied Materials Intraday (AMAT) 25.06 +1.36: -- Update -- -- Technical -- Continues to touch intraday highs following a favorable call from Goldman Sachs this morning. From current levels, look for initial resistance at 25.25 followed by additional overhead at 25.50. To the downside, look for initial support at 24.65.
10:34AM eResearchTechnology announces multi-million dollar deal (ERES) 17.16 +0.01: Announces it has entered into a multi-million dollar agreement with a major global pharmaceutical co to provide digital cardiac safety services for one of the co's drug candidates in development. Terms of the deal were not disclosed, and Briefing.com notes that the shares are relatively thinly-traded.
10:31AM Sector Watch : Biotech (+3.5%) and Semis (+3.3%) continue to pace market advance, tracked higher by Software (+2.4%), Computer Hardware (+2.4%), Drugs (+1%)... Left out of market advance are Tire/Rubber (-1.5%), Homebuilding (-1.2%), Gas Utilities (-1.2%), Healthcare (-1%), Household Appliances (-0.8%).
10:28AM LM Ericsson signs deal with Triton PCS (ERICY) 2.24 +0.03: Announces that TPC has selected ERICY to supply and deploy a majority of the wireless access infrastructure for its GSM/GPRS overlay network throughout its footprint; in addition to the equipment, ERICY will provide initial network design and installation, engineering, testing, and RF design and optimization services. Terms of the deal were not disclosed.
10:21AM Nasdaq Composite Intraday : -- Technical -- Index is solidly higher on not very notable volume. From current levels, look for initial resistance at 1628 followed by additional overhead at 1637 and 1644. To the downside, watch for initial support at 1620 followed by subsequent support points at 1615 and 1610.
10:10AM Best Buy, Elec Boutique attractive on Toys R Us-related weakness-- Merrill : Merrill Lynch thinks that TOY's announcement that their video game biz slowed sharply in April could be a buying opportunity for BBY and ELBO; believes software continues to sell well, and ELBO tells firm that they are comfortable with ests and margins are increasing significantly from software sales.
9:56AM JC Penney may benefit from Sears/Land's End deal (JCP) 22.83 +0.07: Merrill Lynch believes that S's purchase of Land's End has positive implications for JCP, which has the largest catalog operations in the US; firm thinks the fact that JCP has a large catalog offering should be viewed favorably, as well as the fact that JCP plans to introduce some specialty catalogs that would likely compete with Land's End.
9:53AM Sector Watch : Biotech (1.7%) and Semiconductor (+1.5%) groups providing leadership this morning. Among the sectors ticking lower are Oil Services (-0.6%) and Networking (-0.1%).
9:42AM Leading Point Losers : CSGS -2.58, HOV -1.70, EK -1.43, ESRX -1.30, CMX -1.10, MOVI -1.10, S -1.06, THER -0.99, ADVP -0.99, ADRX -0.95, MER -0.63, MWD -0.57... PBMs weaker on U.S. Attorney's investigation; brokers pressured by reports Merrill Lynch and New York AG not yet close to settlement.
9:27AM Crude oil slides lower : London and early U.S. trade is weaker following a relatively quiet weekend in terms of violence in the Mid-East. Declines are expected to be limited as industry sources have raised projections for second half demand.
9:25AM U.S., Russia agree to nuclear arms deal : The US and Russia announce that they had agreed to a treaty that would reduce their nuclear stockpiles to a range of 1700-2200 warheads from approximately 6000+ now; Bush is due to travel to Russia to sign the treaty in Moscow later this month at a summit with Russian President Putin. While this agreement had been anticipated, there was some doubt as to whether some crucial issues would be resolved in time to sign the treaty at the previously-scheduled summit.
9:21AM Terayon Comm solution deployed by EchoStar (TERN) 2.25: Announces that EchoStar Communications has deployed the Terayon CP digital streams management system. EchoStar has installed the systems and associated equipment at its master uplink facility in Cheyenne, Wyoming, which transmits programming to the company's satellites for broadcast to its subscribers across the country.
9:20AM Gapping Up/Down : OSUR +17% (receives FDA approvable letter), CPHD +13.5% (Postal Service award), TERN +10.5% (Echostar deploys Terayon CP), GSPN +7% (CSFB starts coverage), QCOM +5.5% (UBS upgrade)... Gapping Down: RMBS -16% (USA Today article), CSGS -11% (AT&T Broadband battle).
9:15AM IBM named Action Idea of the Week at SG Cowen (IBM) 79.68: SG Cowen names IBM their Action Idea of the Week based on the belief that 2002-03 EPS will top consensus; pickup in services contract signings during Q4-Q1 may presage a resumption of double-digit rev growth in Services beginning in Q4, and OEM biz should see earnings swing as customers' inventories of IBM's chips are now in balance and the HDD loss is being eradicated. At 15x 2003 est and a 22% discount to the S&P 500, shares look "conspicuously undervalued". Price target is $112.
9:15AM Toys R Us sees narrower Q1 loss (TOY) 17.20: Expects to post a better-than-expected Q1 loss of $0.02-$0.03, compared to the current Multex consensus of ($0.09). Total net sales for the quarter increased 2%, to $2.1 bln (consensus $2.11 bln).
9:07AM Chubb downgraded at Raymond James (CB) 76.25: Raymond James downgrades to MKT PERFORM from Strong Buy; while the stock's downside is limited by the strong pricing recovery in the property/casualty industry, firm believes near-term outperformance is less likely until mgmt changes are implemented. Suspends quarterly ests and cuts FY02 est to $4.15 from $4.80 to account for potential restructuring/reserve charges.
9:05AM Cepheid part of U.S. Postal Service award (CPHD) 4.03: Announces it is part of a Northrop Grumman-led team selected by the U.S. Postal Service for a pilot program with initial funding of $3.7 mln to evaluate the use of DNA-based bio-threat detection technology to protect against biological hazards such as anthrax. Based upon results of the pilot program, the USPS plans to award a multi-million dollar contract by the end of September to install DNA detection systems in all of its nearly 300 automatic mail-sorting facilities nationwide.
9:02AM InVision: Fidelity Mid-Cap fund discloses 10% stake (INVN) 19.39: In a Statement of Beneficial Ownership filed Friday with the SEC, Fidelity Mid Cap Stock Fund disclosed a 9.997% stake in InVision as of April 30th.
9:01AM Biovail acquires US rights to Vasotec and Vaseretic from Merck (BVF) 33.63: Biovail and Merck (MRK) have entered into an agreement in which BVF will acquire the US rights to Vasotec and Vaseretic from Merck for $155 mln and semi-annual minimum payments as part of a 5-year supply agreement; sales of the two drugs in the US were $125 mln in 2001. Biovail also acquired the fixed dose combination New Drug Application of enalapril in combination with diltiazem malate.
8:55AM Thomas Weisel says it is time to return to tech : Thomas Weisel recommends that investors start to return to tech, particularly cyclical tech in the semi capital equipment related sectors; firm believes that tech demand indicators are turning positive upstream in semi capital equipment related sectors, rev outlook is stabilizing and is positioned for June YoY growth, and margins are improving, all of which creates the framework for EPS upside and stock gains. Top picks are JBL, KLAC, TSM, and VSH.
8:48AM Celestica upgraded at Soundview (CLS) 27.65: Hearing from sources that Soundview is upgrading to BUY from Hold; firm says the co is likely to benefit from any return in IT spending, has been able to hold operating margins steady despite a deteriorating mkt, and has a strong balance sheet. Although consensus numbers may need to come down, firm believes that is already discounted in share price, which is trading at trough levels.
8:45AM Opening Indications : The pre-market tone remains favorable with the S&P 500 currently trading 5.4 points above fair value while the Nasdaq 100 PMI is up 10.29 points.
8:45AM CSG Systems denies AT&T Broadband claims (CSGS) 28.20: Announces that AT&T Broadband has filed a demand to arbitrate certain disputes under the companies' long term contract. CSG emphatically denied the allegations in the arbitration demand and characterized it as AT&T's latest effort to pressure CSG into renegotiating the companies' 15-yr exclusive agreement.
8:41AM B of A cuts S&P profit forecast; price target : Banc of America's Tom McManus cut his Q2 S&P 500 profit forecast to about flat vs the prior year period, and believes second half profit estimates are still too high; cuts 12-month S&P 500 target to 1150 from 1200 (currently at 1055).
8:41AM Abbott Labs defended by Fulcrum (ABT) 51.25: Fulcrum recommends aggressively purchasing ABT shares at current prices to take advantage of last week's "misinformation"; firm contends rumors that ABT may be involved in a subpoena against their Rx joint venture TAP Pharmaceuticals are false, as TAP Pharma issued a stmt Friday night stating that it is not a target of investigation; in addition, TAP Pharma settled in Q3 2001 with the Justice Dept regarding improper marketing and pricing practices and received full indemnification from future lawsuits on this matter from federal and state authorities. Price target is $64.
8:39AM King Pharms weakness unwarranted -- CSFB (KG) 26.88: CSFB defends stock following Friday's 6.7% decline. Firm thinks concerns over selling by insider are overblown, as position is held in blind trust that makes periodic, automated share sells. Notes that mgmt cannot adjust in any way the activities of the trust. CSFB also defends stock from Altace patent concerns.
8:24AM Sears, Roebuck conference call (S) 51.81: Company will host a conference call at 9:30 ET to discuss its planned acquisition of Lands' End; dial-in 1-888-323-9693, # Sears.
8:24AM GlobeSpan Virata initiated with Buy rating at CSFB (GSPN) 4.94: CSFB initiates coverage with a BUY rating due to 1) potential for expanded footprint, 2) strong G.SHDSL position, 3) diversification relative to its competitors, 4) relationships with key service providers, and 5) move into non-DSL specific networking markets. Price target is $9.
8:21AM Centillium initiated with Buy rating at CSFB (CTLM) 8.99: CSFB initiates coverage with a BUY rating due to 1) strong position in the growing Japanese mkt, 2) potential for footprint expansion, 3) ADSL opportunities outside Japan, 4) non-DSL specific networking opportunities, and 5) technical expertise in communication protocols, DSPs, analog, mixed-signal design, silicon integration, and system design. Price target is $12.
8:13AM Allergan defended by Merrill Lynch (AGN) 57.01: Merrill Lynch says that the reaction to Wednesday's negative Alphagan ruling is overdone and that the shares now reflect the worst-case scenario for the drug; while shares may continue to be volatile as a result of the planned July 1 spin-off of the medical device biz, firm believes investors should be aggressively buying the shares. Reiterates Strong Buy rating.
8:09AM Opening Indications : The pre-market bias is positive as the S&P 500 futures, currently at 1058, trades 3 points above fair value while the Nasdaq 100 futures, currently at 1200, trades 9 points above fair value.
8:09AM Nortel registers $2.5 bln shelf offering (NT) 2.70: Files registration statement the qualifying the potential sale from time to time in the U.S. and/or Canada of up to an aggregate US$2.5 bln of various types of securities. The filings are intended to ultimately qualify for sale in the U.S. and Canada.
8:09AM Justice Dept subpoenas airlines regarding Orbitz: USA Today : USA Today reports that the Justice Dept has subpoenaed the airline owners of the Orbitz travel site, indicating that its review of the site has evolved into a formal probe; competitors such as EXPE and Travelocity (part of TSG) claim that Orbitz is receiving lower fares from the airlines in a bid to ultimately eliminate competition from other sites.
8:03AM Rambus facing FTC lawsuit: USA Today (RMBS) 6.60: USA Today is reporting that the FTC is preparing an antitrust lawsuit against Rambus, charging that the company worked with the industry to adopt a memory chip standard while simultaneously applying for patent rights to that design; article says FTC will seek to prevent RMBS from collecting royalties on SDRAM and perhaps DDR memory as well.
8:02AM OraSure Tech receives FDA approvable letter (OSUR) 7.30: Company has received notification from the FDA that the OraQuick Rapid HIV-1 Antibody Test is approvable, subject to the company meeting certain conditions.
7:59AM Williams Cos lowered to Hold by CIBC (WMB) 16.49: CIBC World Mkts downgrades to HOLD from Buy. While multiples appear attractive, rating agency issues, reduced earnings visibility and industry headlines will likely limit P/E expansion near term.
7:58AM Eastman Kodak downgraded at UBS (EK) 34.30: UBS Warburg downgrades to HOLD from Buy due to valuation and the belief that the shares are currently reflecting benefits from restructuring; maintains ests and price target of $36.
7:56AM Pitney Bowes upped to Buy at Deutsche on valuation (PBI) 39.95: Deutsche Bank upgrades to BUY from Mkt Perform based on valuation. Believes 10% pullback from high represents attractive entry point.
7:52AM Hanover Compressor misses quarter (HC) 16.53: Reports Q1 earnings of $0.18 per share, $0.06 worse than the Multex consensus. Revenues rose 13.5% to $260.9 mln vs the $303.7 mln consensus.
7:50AM UAL Corp upgraded at Goldman (UAL) 9.50: Goldman Sachs upgrades to TRADING BUY from Market Outperform; UAL shares are trading at post 9/11 lows despite boosting liquidity, achieving labor peace, improving service, and having the industry's most attractive network. Price target is $20.
7:49AM Allmerica cut by Solly -- takeover seems unlikely (AFC) 48.71: Salomon Smith Barney downgrades to OUTPERFORM from Buy. Move follows firm's April 30 "speculative" upgrade based on media report AFC might be selling off its prime variable annuity/life ops. As no evidence to substantiate this has emerged, and a possibility of a take-out now seems unlikely, firm's new rating is based solely on operating fundamentals.
7:45AM Applied Materials estimates raised at Goldman (AMAT) 23.70: Goldman Sachs raises ests due to 1) stronger than expected order recovery, 2) SEMI April book-to-bill released this Thursday, and 3) news, events, and price performance; raises FY02 est to $0.21 from $0.19 and FY03 to $0.85 from $0.75 (both above consensus).
7:40AM AOL Time Warner to de-emphasize "convergence" (AOL) 16.98: The Wall Street Journal is reporting that when Richard Parsons assume the post of CEO of AOL on Thursday, he will de-emphasize the "convergence" strategy, even though it was the major strategic rationale for the merger between America Online and Time Warner; instead, he will focus on making sure individual business units are the best in their own industry sector.
7:36AM Reliant Resources downgraded at CSFB (RRI) 12.00: CSFB downgrades to HOLD from Buy, citing the following risks: 1) potential broadening of current SEC inquiry, 2) substantial refinancings have yet to be completed, and 3) potential negative rating agency reaction. Lowers price target to $12-$13 from $19.
7:31AM Marvel Enterprises may give up recent gains-- NY Post (MVL) 7.69: The New York Post is making a valuation call on MVL, saying that even if everything goes just right it's hard to see Marvel rising from where it is. The article also notes declining revenues, a balance sheet with goodwill amounting to 75% of assets, and low royalty percentages from Spider-Man |
