14:15 ET Greenspan Testimony: In prepared statements to the Senate Budget Committee, chairman Alan Greenspan notes that the risks of a US
economic slowdown have increased since its August 18 FOMC meeting; sees lower equity prices dampening household and business spending; tone of
report could prompt a rate cut next week when the FOMC meets on Tuesday; see prepared testimony.
13:47 ET Former Highflyers: Rally in Internet group helping lift some of the former highflyers that went on to crash-and-burn. The list includes names
such as Egghead.com (EGGS 8 11/16 +7/16), Audio Book Club (KLB 8 7/16 +1 3/8), K-tel (KTEL 8 5/16 +15/16), 7th Level Inc. (SEVL 3 9/16 +1
9/16, +78%) and Zapata (ZAP 11 7/16 +13/16).
13:15 ET eBay (EBAY): Goldman Sachs raises offering price from $14-$16 to new range of $16-$18. Number of shares offered unchanged. Given
strength of Internet stocks today, would expect the deal to hit the market tomorrow. eBay is a person-to-person online auction site. For more information on
the company, see yesterday's Story Stock.
12:55 ET Nokia (NOK/A) 80 3/16 +5 13/16 (+8%) --Update-- Shares of Finnish cell phone equipment maker opened at 78 17/32 and reached an
intraday high of 81, after company said it is experiencing stronger-than-expected mobile phone user growth. Company also noted that strong market
developments in 1998 has reinforced confidence in Q3 outlook.
12:33 ET Excite Inc (XCIT) 35 7/8 +7 1/2 (+26%): --Update-- Neither Dell or Excite revealing specifics of financial arrangement, citing competitive
reasons. However, analysts telling us that length of deal is two years and has revenue-sharing component.
12:17 ET Excite Inc (XCIT) 35 13/16 +7 716 (+26%): For our take on the Dell/Excite announcement, see Story Stocks.
12:09 ET Internets Continue Rally: Search Engines: YHOO +9 1/2, XCIT +7 1/2, LCOS +4, SEEK +2 1/4, CNWK +4 7/8... Access Providers:
AOL +5, ELNK +2 5/8, MSPG +3 5/8, PSIX +1 3/4... Software/services: INKT +6 1/4, DCLK +3 1/2, BCST +4 5/8, RNWK +3 5/8, ISSX +3.
Internet Stock Index up 7.4%.
11:30 ET Networks Solutions (NSOL) 41 +3 5/8 (+10%): BancBoston Robertson Stephens initiates coverage of exclusive registrar of Internet domain
names with "buy" rating. Says contract with government in transition, but believes NSOL will continue to be a dominant provider of registry and registrar
services; company has proprietary technology and exclusive distribution and marketing arrangements. Based on current estimates, NSOL expected to earn
$0.60 (P/E 68) for 1998 and $0.96 (P/E 43) for 1999. Chart
11:07 ET Myriad Genetics (MYGN) 11 3/4 +2 5/8 (+29%): Lehman Brothers says that while the biotech index has soared 31% from Sept 1 low,
MYGN, one of its favorite stocks, has barely budged. Notes stock currently at low-end of 52-week range with support level at $8. Says stock also close to
fundamental support level of $5.69 cash/share. Firm reiterates "buy" rating and 12-month target of $30.
10:43 ET Excite Inc (XCIT) 34 5/8 +6 1/4 (+22%): --Update-- Search-engine will provide its personalized start page for Dell's new ConnectDirect
initiative. Each Dell Dimension desktop computer will connect the customer to a personalized Excite start page.
10:37 ET Dell Computer (DELL) 62 7/16 +2 3/8 (+4%): --Update-- Company announces alliances with AT&T, Excite, and SBC Communications.
AT&T Worldnet will be featured ISP and Excite (XCIT 34 9/16 +6 3/16) will be featured search-engine.
10:33 ET Internet Stocks On Fire: YHOO +6 1/2 (setting another all-time high), XCIT +6, LCOS +3, CMGI +3 5/8, AMZN +4 1/2, ELNK +2 1/8,
SEEK +1 1/4, INKT +4, AOL +3 7/8.
10:29 ET Nordstrom Inc (NOBE) 27 1/8 -1/2: BT Alex. Brown cuts estimates, citing continued sales weakness and expectation that gross margin
expansion will be more moderate. Reduces FY98 view from $1.45 to $1.40 and FY99 estimate from $1.65 to $1.60. The current First Call mean estimates
for the two periods are $1.42 and $1.64, respectively.
10:19 ET IGI Inc (IG) 2 1/2 +9/16 (+29%): Company announced it will license to Johnson & Johnson Medical, Division of Ethicon Inc., Novasome
microencapsulation for use in some of its new products. Terms of the agreement were not disclosed. Volume 9,800.
10:10 ET THQ Inc. (THQI) 15 11/16 +15/16: Piper Jaffray initiates coverage of developer and distributor of interactive entertainment software products
with "strong buy."
10:07 ET Apparel Stocks: Goldman Sachs making extremely bullish comments on group, raising suggested weighting from "market weight" to
"overweight." Says retailers have fallen 29% from market peak on July 17. At 55% of 98 estimated S&P P/E, Goldman says stocks at lowest relative P/E
this decade. Firm raises Jones Apparel Group (JNY 24 1/2 +3/8) and Columbia Sportswear (COLM 15 1/16 +9/16) from "market perform" to
"recommended list buy." Sets price targets of $37 and $26, respectively.
09:54 ET Oilfield Drilling/Services Stocks: Group receiving lift from Dept. of Energy report that U.S. crude oil inventories fell by 9.3 mln barrels to
316.4 mln in the week ending Sept 18. Benefitting from the news are names such as HAL +1 1/8, FGII +5/8, RIG +1 3/4, CDG +1, DO +1 1/4.
09:50 ET 3Com Corp. (COMS) 32 3/4 +3/8: --Update-- Needham & Co. maintains "strong buy" rating and raises EPS estimates after the company
posted a 2% sequential revenue gain; operating margins improved to 8.4% from 6.6% in the preceding quarter; ups FY99 EPS from $1.21 to $1.28 a share
and FY00 EPS from $1.82 to $1.85 a share.
09:45 ET Market Open: MSFT +1/4, PSFT +1 1/2, (OPCO upgrade from "hold" to "buy"), DELL +1 3/4, INTC +1, AMD +9/16, MU +1, CSCO
+1, COMS +1/2, ASND +1/4, AOL +3 1/2, YHOO +4 1/4, AMZN +3 1/2, CMGI +1 5/8, XCIT +3 5/8, LCOS +1 5/8. Dow +102, Nasdaq +19,
S&P +12.
09:37 ET 7th Level Inc. (SEVL) 2 1/2 +1/2 (+25%): Former highflyer announced that RealNetwork (RNWK) is now selling from its website 7th Level's
new streamed character animation software product - Agent 7 1.0. Volume 151K.
09:34 ET Smith International (SII) 24 5/8 +1/4: Speaking at the Dain Rauscher Wessels energy conference, oilfield products and services company's
CFO suggested that Q3 and full year estimates would likely fall short of analysts' estimates. Cites storms that disrupted drilling activity in the Gulf of Mexico.
09:29 ET CIENA Corp (CIEN) 15 9/16: Telecom equipment maker's shares rose 42% yesterday on news Japan Telecom has selected CIENA's
MultiWave Sentry 4000 dense wavelength division multiplexing (DWDM) system for deployment in its national fiber optic network. CIEN indicated another
1 pt higher this morning.
09:27 ET Republic Services Inc. (RSG) 17 1/4: Merrill Lynch names provider of non-hazardous solid waste collection and disposal services as its "focus
1 stock" of the week; rates issue a near and long-term "buy."
09:25 ET CNET Inc (CNWK) 36 1/8: GIST Communications, the largest provider of TV listing guides on the Internet, announced a partnership with the
Snap Internet portal service, which is jointly owned and operated by NBC and CNET. GIST will produce co-branded television listings and editorial
content within Snap's "Local Centers" and television entertainment categories. CNWK shares indicated 3 pts higher.
09:22 ET Stock Indications: MSFT +7/8, DELL +1 1/2, INTC +1/2, CSCO +5/8, COMS +1 1/2, ASND +1/2, ERICY +3/4, YHOO +1 3/4,
AMZN +2 3/8, CMGI +1 5/8, LCOS +1, CNWK +3.
09:16 ET Answer Think Consulting (ANSR) 18 1/2: DLJ upgrades shares of knowledge-based consulting and information technology services firm from
"market perform" to "buy." Says solid outlook supports 65%-75% near-term growth and 50% longer-term growth. Firm sets a price target of $25. ANSR
shares currently trade at 43 times the mean FY99 earnings estimate of $0.43. ANSR shares indicated 1/2 higher. DLJ participated in company's May IPO
priced at $13. Chart
09:09 ET Lehman Brothers Holdings (LEH) 36 1/8: Financial services concern reports Q3 net of $1.10, in-line with analysts' downwardly revised
estimates. LEH also announces additional buyback of up to 7.5 million shares, or 6.4% of its stock. LEH shares trading 2 3/4 pts higher in pre-market.
Yesterday, Moody's Investors Service confirmed its ratings on LEH's debt, which helped squash rumors that LEH was on the brink of insolvency. Chart
09:01 ET 3Com Corp. (COMS) 32 3/8: Networking products maker reported Q1 net of $0.24 a share, 4 cents above the First Call mean; sales fell 12%
to $1.405 bln. COMS shares indicated 1 1/8 higher.
08:59 ET Cellular Stocks: Nokia (NOK/A 74 3/8) and Ericsson (ERICY 19 1/16) expected to climb this morning after Nokia made bullish comments
regarding cellular subscriber growth and near-term fundamentals of industry. Stocks have been down sharply on rumors that Ericcson would pre-announce
an earnings short-fall. NOK/A Chart---ERICY Chart
08:52 ET Peritus Software Services Inc. (PTUS) 3: Once highflying "Year 2000" conversion concern warning that it expects to record a Q3 loss of
between $4.7 and $8.2 mln, excluding restructuring charges. According to First Call, company was expected to earn $0.04 a share, vs year-ago profit of
$0.07 a share. This was a $30 stock less than a yr-ago. Chart
08:49 ET Dell Computer (DELL) 60 1/16: Company expected to announce alliances with AT&T, Excite and SBC Communications. Will hold
conference call. For details, see press release.
08:44 ET Greenspan Speech: Fed Chairman will begin testimony at 14:00 ET. Given the positive effect the Washington Post article is having on the
market, could see an intraday reversal should Greenspan not deliver.
08:41 ET Millennium Pharmaceuticals (MLNM) 17 1/4: Company announces alliance with Bayer AG. In return for a total investment of up to $465
million, including approximately a 14% equity investment in Millennium, Bayer will receive access to key technologies in modern genome research and a flow
of new genomics-based targets for drug development over a five-year period. MLNM also saying it expects to be profitable for 1998. MLNM was
previously expected to lose $0.23 for the yr. MLNM shares indicated 2 1/4 pts higher. (Press Releases)
08:35 ET Market Indication: Broader market indicated higher. Current level of S&P futures suggest Dow rally of 80 pts or more at the open... Major
overseas markets advance: France +1.5%, Germany +2.1%, Hong Kong +1.8%, London +1.2%. Japan closed for Autumnal Equinox Day... Market being
assisted by Washington Post article arguing that Fed Chairman Greenspan will use today's testimony before the Senate Finance Committee to signal a rate
cut at Tuesday's FOMC meeting. |
