From Briefing.com: 8:37AM Texas Instruments: cautious comments by SG Cowen (TXN) 19.20: SG Cowen believes that wireless risks to TXN are increasing (see 8:31 NOK comment), as co has 25-30% exposure to the wireless end mkt; firm cites the following factors for its caution: uncertain handset demand in 2H02, pricing pressure on components is likely to increase, and a potential inventory correction looms in Q4. No change to ests.
8:31AM Nokia downgraded at SG Cowen (NOK) 12.05: SG Cowen downgrades to NEUTRAL from Buy due to concerns over lack of growth in global handset mkt; firm does not believe that the co will see a return to growth in the mobile mkt until 2004 or that the data upgrade cycle will be strong enough in the current difficult economic environment; cuts 2002 est to $0.73 from $0.74 and 2003 to $0.71 from $0.80 (the latter well below consensus), and reduces global handset mkt assumption to reflect essentially no unit growth through 2006.
8:24AM S&P futures vs fair value: -1.3. Nasdaq futures vs fair value: flat. : The pre-market indicators have been able to work off the worst levels of the morning. The AMAT (-2%) commentary and this morning's downgrade have pressured semi equip but this has been offset to some extent by the favorable earnings and upgrade on NTAP (+14.8%). Nasdaq 100 PMI is up 0.24.
7:59AM Applied Materials cut to Outperform from Strong Buy at USB (AMAT) 13.46: USB Piper Jaffray downgrades to OUTPERFORM from Strong Buy. Although EPS and revs exceeded expectations, July orders of $1.78 bln were below guidance. Firm has lowered its FY03 rev est to $6.3 bln from $9.2 bln and EPS projection to $0.39 from $0.78 (Multex consensus $7.27 bln/$0.60). USB cuts price target from $35 to $15, or 20x calendar 2004 earnings.
7:57AM Business Inventories seen up 0.1% : June Business Inventories will be released at 8:30 ET; the market expects a 0.1% increase. This release is not a market-mover, though it's notable that the inventory/sales ratio remains near record lows, which bodes well for industrial production in the months ahead.
7:42AM Network Appliance upgraded at Solly (NTAP) 7.05: Salomon Smith Barney upgrades to BUY from Neutral after the co beat ests last night; firm was impressed by the co's ability to keep Filer units flat QoQ, grow Filer avg selling prices 7% QoQ, sell larger systems, continue to penetrate the enterprise, and keep costs in-line; also, stock is trading near its lowest levels since the IPO in 1995; cuts FY03 rev est to $885.1 mln from $944.3 mln, and maintains $10 price target.
7:28AM PBMs under scrutiny for ties to drug co's-- WSJ : The Wall Street Journal reports that pharmacy benefit managers such as ADVP and ESRX are turning increasingly to brand-name drug makers for revenues as margins on claims processing get thinner; the practice allegedly raises questions about whether the PBMs are steering customers to more expensive drugs rather than cheaper generics. (Note: both ADVP, ESRX, and others are already facing numerous probes into these charges... see the Archive for details.)
7:22AM AOL Time Warner execs take certification down to wire -- WSJ (AOL) 10.80: WSJ reports that AOL's CEO and CFO decided to certify the firm's financial results after holding last-minute talks with advisors. According to article, AOL's last-minute huddling reflects its delicate situation. If the SEC finds irregularities in the accounting practices it is currently investigating, the executives could be personally exposed to potential perjury charges.
7:12AM IBM cuts more than 15,000 jobs, twice as many as expected -- WSJ (IBM) 71.90:
7:12AM Mortgage applications slip in latest week : Mortgage applications for home purchases fell 5.6% in the Aug 9 week; for the month thus far this index is averaging 363.5 vs 374.3 in July; given the volatility in the series and the still strong level of the index it is too early to say the latest week represents a trend of weakness. The mortgage refinancing index fell slightly as well, but remains near record highs - these refinancings should give consumer spending a boost in the next few months.
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This cycle has barely begun Gottfried. Unfortunately we have hit a rather large pothole.
RtS |
