You are right Barry. The street is waiting for earnings to be released. However, ever wondered what could happen to the stock if the "whisper" number is not met ? The Zacks estimate is factored into the stock price.
Do you or anyone know what the whisper number is ?
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The following is from DBC newsroom:
Updated: Mon Sep 29 12:39:00 1997
U.S. stocks rise ahead of key economic reports
NEW YORK (DBC) -- Stocks crawled into positive territory Monday afternoon, as investors braced themselves for a
clutch of economic reports due out later in the week. The technology sector outperformed after three days of losses,
while brokerage issues forged higher on speculation of further consolidation. Shares of gold miners, meanwhile, notched
further gains, continuing their impressive run of recent days.
At 12:25 p.m. ET, the Dow Jones Industrial Average advanced 15.96 points, or 0.2 percent, to 7938.12.
"With third-quarter earnings about to emerge, we expect further solid moves in the broad market, led by those issues
showing nice earnings progression," said Don Hays, director of investment strategy at Wheat First Butcher Singer. "It is
our best guess that the big-cap portion of the market will spend the next four to six weeks completing the work-off of its
overbought condition of recent weeks."
Helping support prices Monday was the quarterly ritual known as window-dressing. Window-dressing refers to portfolio
adjustments by money managers who seek to put their best face on end-of-quarter statements sent to clients. Given the
tremendous move in the stock market since mid-April, most investment professionals wish to show their portfolios as
being fully invested at quarter-end.
Most important among the week's numerous economic reports are Wednesday's report from the nation's purchasing
managers on September manufacturing activity and Friday's report on September employment trends.
Additionally, the Federal Reserve's Federal Open Market Committee meets Tuesday to discuss interest rate policy.
Most analysts look for the central bank to maintain the federal funds rate target at 5.50 percent. The federal funds rate,
the Fed's key monetary policy lever, is the rate commercial banks charge each other for overnight loans. The Fed
influences this rate by altering the cost and availability of bank reserves. The federal funds rate was last raised on March
25 to 5.50 percent from 5.25 percent. The Fed last lowered the funds rate on Jan. 31, 1996. Most analysts expect the
Fed to maintain the discount rate at 5 percent. The discount rate is what Fed district banks charge commercial banks in
their area for borrowing short-term funds at its discount window.
The Standard & Poor's 500 Index rose 0.2 percent, the New York Stock Exchange Composite gained 0.2 percent, and
the American Stock Exchange Composite added 0.4 percent.
New York Stock Exchange advancing issues led decliners by 7 to 6.
On the Big Board floor, 222 million shares changed hands, 14 percent less than Friday's level at this time.
The Nasdaq Composite advanced 0.3 percent. Advancing issues led decliners by 20 to 19 on the Nasdaq Stock
Market. Volume totaled 302 million shares.
"We believe strongly that, with the S&P 500 trading at a 23.3 price-earnings ratio, we are in the latter stages of this bull
market," Hays said. "But with the broadening out of the upward move, we believe that the bull market has a
better-than-even chance of remaining alive until the first quarter of next year, at least."
In special situations, Aetna warned Wall Street of potentially disappointing earnings, its shares slipping 6 1/2 to 84 on
the news. The company said it believes third-quarter operating net will be in the range of 95 cents a share to $1.10 a
share. Most projections had called for a figure of $1.31 a share.
HPR Inc. moved ahead 2 3/4 to 22 after HBO & Co. agreed to purchase the developer of software and database
products for the managed care industry. Each HPR Inc. shareholder will receive 0.6 share of HBO stock for each HPR
share. In Monday activity, HBO shares fell 1 1/8 to 38 3/8.
Coca-Cola improved 3/4 to 62 3/4 after the beverage heavyweight said it eyes third-quarter global unit case volume
rising 9 percent to 10 percent. Analysts had anticipated growth of just 7 percent.
And SkyWest Inc. advanced 7/8 to 20 3/4 after Morgan Stanley Dean Witter Discover upped its view to "outperform"
from "neutral."
Other airline stocks flew ahead, with British Airways Plc up 1 3/4 to 111, U.S. Airways Group Inc. 1 3/4 to 42 5/8,
UAL Corp. 1 1/2 to 85 1/2, Alaska Air Group Inc. 3/4 to 32 1/2, and Southwest Airlines Co. 1/2 to 32 3/8.
In the financial sector, the brokerage group racked up gains Monday amid speculation of further consolidation within the
industry. Last week, Travelers Group Inc. offered to buy Salomon Inc. for $9 billion. In Monday's action, Paine Webber
Group picked up 1 7/8 to 47. Thursday, the company said it is not in talks to be acquired. Also, Everen Capital Corp.
lifted 1 1/2 to 39 1/2, Jeffries Group Inc. 1 1/4 to 72 3/4, Interra Financial 1 1/8 to 59 3/4, Bear Stearns Cos. Inc. 3/4
to 43 3/4, McDonald & Co. Investments 5/8 to 28 9/16, and A.G. Edwards Inc. 5/8 to 50 3/8.
Over in the technology universe, widely-held computer-related issues gained, with four issues rising for each that
declined. Compaq Computer advanced 1 5/8 to 76 after Cowen & Co. repeated its "strong buy" recommendation. And
International Business Machines climbed 1 to 103 5/8, Intel 1 1/4 to 94 3/8, Dell Computer 1 1/4 to 101, Bay Networks
1 1/4 to 39, Applied Materials 1 5/8 to 96 1/4 and Motorola 1 to 69 1/2.
U.S. BONDS:
Treasury bonds declined Monday afternoon on concerns that this week's slew of economic releases will show an
economy expanding faster than consensus projections.
Topping the week's economic calendar are Wednesday's report on manufacturing activity from the nation's purchasing
managers and Friday's report on September employment trends. As well, Tuesday will see the Federal Reserve conduct
a meeting on monetary policy.
In economic news, personal income increased 0.6 percent in August as personal spending rose 0.3 percent, the
Commerce Department reported. The figures compare with Wall Street forecasts of +0.5 percent and +0.4 percent,
respectively. See DBC Report.
Eurodollar contracts traded 1 to 1.5 basis points lower.
The 30-year Treasury declined 8/32, to yield 6.390 percent from Friday's 6.369 percent. The 10-year note fell 3/32, to
yield 6.098 percent. The short bill fell 1 basis point to 4.84 percent discount.
In the mortgage-backed market, 30-year currents declined 2-3/32.
COMMODITIES:
New York light sweet crude for November delivery declined $0.02 to $20.85.
December gold rose $0.40 to $329.40.
CURRENCIES:
The dollar traded lower versus the yen and d-mark.
Dollar/yen was quoted at 120.93 from Friday's 121.08.
Dollar/mark was at 1.7578 from 1.7603. |
