Hi speed...
where you been...we only talk about this site everyday ;-)
quote.com
To: +Doug R (21900 )
From: +David J
Wednesday, Oct 7 1998 3:14PM ET
Reply # of 21914
In light of the Nasdaq move today I feel it is important that I post the magnets in the
immediate are on it
The trendlines are referenced from monday to friday values: 1390 to 1392, 1455 to
1451, 1477.7 STRONG, 1528
The 1455 trendline has a value of 1453 today. It should hold. Cramer mentioned Nas
1150 today on his site, I do have a magnet trendline in that area.
hmmmmmmmmmmmmm
-----------------------------------------------------------------
saw Cramers Dad on CNBC this morning...Cramer should buy him a toupee or tell him to get rid of that swirl top ;-)
Market Roundup: Ugly, Painful Session
Has Players Seeking Answers
By Aaron L. Task
Senior Writer
10/7/98 6:15 PM ET
Some positive international news spurs a morning rally that
quickly fades as technology stocks succumbed to
widespread selling. The Dow Jones Industrial Average
largely withstands the negativity as broader markets suffer.
Sound familiar?
Today shared many of the same characteristics of
yesterday's action, but in many ways it was a whole lot
worse. Transportation stocks and financial names joined
high techs in the line of fire as Wall Street succumbed to
confusion and a bit of panic.
Major Indices
INDEX
CHANGE
%
VALUE
YR TO DATE
DOW
1.29
-0.02%
7741.69
-2.1%
S&P 500
13.91
-1.4%
970.68
+0.0%
NASDAQ
48.28
-3.2%
1462.61
-6.9%
RUSSELL
2000
10.32
-3.1%
322.23
-26.3%
TREASURY BOND
CHANGE
VALUE
YIELD
30-YEAR
-2 3/32
109 29/32
4.867%
The biggest difference today was the action in the
fixed-income and currency markets. The dollar's loud
weakness vs. the Japanese yen helped send the price of
the 30-year Treasury bond down 2 3/32 to 109 29/32 and
its yield rising to 4.87%. The dollar was quoted down 9.32
at 120.97 yen late in the New York session, its largest drop
vs. the yen in a quarter-century.
The yen's strength was fostered mainly by allusions to
more U.S. rate cuts by Federal Reserve Chairman Alan
Greenspan and further optimism for passage of meaningful
bank reform legislation in Japan. The latter helped send the
Nikkei 225 up 6.2% overnight.
Market players debated the impact of the dollar's
movement on equity trading. Some called it a destabilizing
force while other noted that the greenback's weakness
helped multinational stocks such as Coca-Cola
(KO:NYSE) and Procter & Gamble (PG:NYSE) close with
gains, contributing to the Dow's relative strength today.
Still others saw little to no impact.
"I don't think we're getting that strong of a kick from the
dollar into the equity market," said Courtney Smith, chief
investment officer at Orbitex Management. "I think the
big impact is slow economic growth, and poor if not
negative earnings. That's the story of the market. I honestly
see no indication the bear move is over, but I would say
sometime in October we'll see the market bottom."
The blue-chip proxy rose as high as 7858.32 in the first
hour of trading. Soon thereafter the index was struggling to
fight the downdraft impacting other indices. By
midafternoon the effort became too much and the Dow shot
downward to a low of 7629.18. At day's end, however, the
Dow was off just 1.29, or 0.02%, to 7741.69.
Merck (MRK:NYSE) exerted the greatest downward thrust
on the Dow, followed by financial components J.P. Morgan
(JPM:NYSE) and Travelers (TRV:NYSE).
Financial stocks overall were hammered as the
Philadelphia Stock Exchange/KBW Bank Index closed
down 3.3% to a new 52-week low of 593.87, and the Amex
Broker/Dealer Index off 7.4% to a new low of 299.23.
The S&P 500 lost 13.91, or 1.4%, to 970.68 but closed well
off its intraday low of 957.15. The Russell 2000 declined
10.32, or 3.1%, to 322.23 after touching 319.82 at its nadir.
Meanwhile, the Nasdaq Composite Index rose as high as
1523.03 early on but then again found itself at the epicenter
of the selling. The blinded-by-tech index declined steadily
from 10:30 a.m. EDT and crashed through its Sept. 1
intraday low of 1475.59 around 2:15 p.m. The index fell as
low as 1449.06 before closing off 48.28, or 3.2%, at a new
52-week low of 1462.61.
Internet stocks such as Yahoo! (YHOO:Nasdaq) and
Amazon.com (AMZN:Nasdaq) suffered heavy blows,
sending the American Stock Exchange Inter@ctive
Week Internet Index down 4.9%. Meanwhile, tech titans
Dell (DELL:Nasdaq), Microsoft (MSFT:Nasdaq), and
Cisco (CSCO:Nasdaq) found themselves tied to the selling
post, leading the Nasdaq 100 down 2.8%.
'At what point does it stop?'
"When Dell printed 53 this cracked the bellwether further
and it broke its trend line; that set the tone for the market,"
said Peter Green, director of technical research at Gruntal.
"You're washing out the excesses further, which is a big
plus. The question remains, at what point does it stop?
Overall, the technicals are not favorable with the
transportation average making a new low." Green referred
to the Dow Jones Transportation Average, which fell
85.60, or 3.4%, to a new 52-week low of 2447.85.
"If there is a plus, it's that the decline from 1769 to 1449
occurred in about eight trading days," he said, reflecting on
the action in the Comp. "Net-net, that's a panic to some
degree. The problem remains that things are still not
reacting well to good news. [Advanced Micro Devices
(AMD:NYSE)] had good numbers and it's down 4." AMD
closed off 4 1/8, or 20.8%, to 15 3/4 despite last night's
announcement of a third-quarter profit of 1 cent a share,
above both the 22-analyst First Call forecast for a loss of 11
cents and the year-ago loss of 22 cents.
While many players have welcomed the weakness in tech
bellwethers as a sign the selling is nearing a crescendo,
Green argues the relative strength in the Dow suggests
more pain is forthcoming. "This is the worst market that I've
seen," he said. The crash of 1987 was not as troubling
because "in retrospect it was over quickly. One has to say
the [current] market is not ready for a washout. A washout
occurs when everything goes to hell at once."
As far as key levels to watch, Green said the Nasdaq could
hit 1400 "rather quickly" and fully expects the Dow to revisit
7400 in the near term, while eyeing support for the S&P
500 next at 950 and then 900.
In New York Stock Exchange trading, 977.1 million
shares changed hands -- the third-highest tally ever -- while
declining stocks outpaced advancers 2,127 to 999. In
Nasdaq Stock Market trading, 945.6 million shares were
exchanged -- good for seventh place on the all-time list --
while losers led 3231 to 1020. New 52-week lows swamped
new highs 522 to 63 on the Big Board and by 874 to 5 in
over-the-counter trading.
'Ugly, warty face of a bear'
Rather than looking for messages with the market today,
some traders were simply calling a spade a spade.
"I hope this is the cross-currents you get a market bottom,
but I'm afraid this is the ugly, warty face of a bear," said
Doug Myers, vice president of equity trading at
Interstate/Johnson Lane in Atlanta. "When you get
liquidity and logic going the way of the buffalo and
investment rationality becomes extinct, you get emotional,
gap-type trading."
The rising volatility -- the Chicago Board Options
Exchange Volatility Index climbed 9.9% today -- results
in market makers and specialists tending to "widen out
bids and offers," Myers said. That leaves stocks to
"stair-step down or up in roughly wider spreads, rather than
trading in a smooth continuous motion."
Among other indices, the Dow Jones Utility Average
gained 1.65, or 0.5%, to 319.13; and the American Stock
Exchange Composite Index fell 7.32, or 1.2%, to 585.77.
Elsewhere in North American equities, the Toronto Stock
Exchange 300 gained 65.25, or 1.2%, to 5463.37 and the
Mexican Stock Exchange IPC Index tumbled 59.38, or
1.7%, to 3375.43.
Wednesday's Company Report
By Heather Moore
Staff Reporter
(Earnings estimates from First Call; new highs and lows on
a closing basis unless otherwise specified.)
Amazon.com got struck with a poison dart in the form of
two separate deals that may put competitive pressure on
the online retailer. The stock collapsed 15, or 13.9%, to 93
7/16.
First, Bertelsmann will pay $200 million for a 50% interest
in Barnes & Noble's (BKS:NYSE) barnesandnoble.com
Web site. Bertelsmann will contribute $100 million in
capital to a joint venture between the two firms. The deal
forestalls the planned IPO of barnesandnoble.com but
appears to strengthen the company's nascent Internet
efforts. Barnes & Noble picked up 1 5/16, or 5.6%, to 24
7/8.
Second, CDnow (CDNW:Nasdaq) and N2K (NTKI:Nasdaq)
are planning a merger which could pose a threat to
Amazon.com's burgeoning music business. CDNow
hopped 5/16 to 8 1/8 while N2K shot up 15/16, or 20.8%, to
5 1/2.
And today's swinging mace bruised the entire Internet
sector (along with other techs, financials and airlines).
Yahoo! tumbled 10 1/4, or 8.2%, to 114 3/8 ahead of its
scheduled earnings report after the closing bell.
TheStreet.com ran through a quick history of the search
engine's earnings and wondered what this quarter's
announcement will mean for the rest of the sector in a
piece today.
Elsewhere, SportsLine USA (SPLN:Nasdaq) plunged 8
5/8, or 53.3%, to 7 11/16 after saying its revenue for the
third quarter will be below estimates. Though the company
added its quarter results should meet the eight-analyst
expectation for a loss of 41 cents a share. SportsLine lost
75 cents a year ago. Salomon Smith Barney cuts its
rating to neutral from buy.
MindSpring (MSPG:Nasdaq) descended 4 1/16, or 12.2%,
to 29 3/8 following last night's news that the Internet service
provider's CFO -- who led the company through explosive
years of growth -- plans to resign later this year.
MindSpring said it has already begun a search to replace
Michael Misikoff. The company also said it is comfortable it
can meet or exceed the eight-analyst forecast for
third-quarter earnings of 11 cents a share.
America Online (AOL:NYSE) lost 5 5/8, or 5.8%, to 92.
Netscape (NSCP:Nasdaq) lost 1 15/16, or 10.2%, to 17
1/16. Lycos (LCOS:Nasdaq) lost 3 1/16, or 10.2%, to 27
1/8.
Mergers, acquisitions and joint ventures
Urologix (ULGX:Nasdaq) soared 3/4, or 21.4%, to 4 3/8 on
word it has inked a two-year agreement with Boston
Scientific (BSX:NYSE) to co-market its Targis System.
Boston Scientific added 1 3/8 to 54.
Resource America (REXI:Nasdaq) slipped 1/8 to 8 5/16
after the firm received a 15-per-share buyout offer from
privately held investment concern Radcliffe Mitchell &
Weiss. TSC's Herb Greenberg did some digging in a
special update, asking: Who the heck is Radcliffe Mitchell
& Weiss?
Earnings/revenue reports and previews
Somnus Medical (SOMN:Nasdaq) gave up 11/16, or
33.3%, to an all-time low of 1 3/8 after warning last night it
expects to report a third quarter loss of between 30 and 35
cents per share. The two-analyst estimate was for a loss of
26 cents per share.
Loewen Group (LWN:NYSE) skidded 3 3/8, or 29%, to an
annual low of 8 1/4 following the company's profit warning
last night. The 11-analyst estimate was for third quarter
profits of 19 cents versus 15 cents a year prior.
Faroudja (FDJA:Nasdaq) plummeted 1 1/8, or 28.1%, to
an all-time low of 3 following its warning that it expects to
lose up to 15 cents a share in the third quarter. The
four-analyst consensus was for a loss of 3 cents vs.
year-ago profits of 4 cents.
Advanced Lighting Technologies (ADLT:Nasdaq)
slouched 1 1/2, or 21.4%, to an all-time low of 5 1/2 after
forecasting its first-quarter results will fall 30% to 40%
below its year-ago 17 cents a share due to global
economic weakness, which the company said is causing
customers to adjust their inventories. The three-analyst
view called for earnings of 20 cents.
Trend Lines (TRND:Nasdaq) powered up 5/16, or 20.8%,
to 1 7/8 after recording a second-quarter loss of 34 cents a
share, missing the three-analyst outlook for a loss of 12
cents and falling below the year-ago profit of 4 cents.
Global Industries (GLBL:Nasdaq) sank 1 5/16, or 14.6%,
to an annual low of 7 13/16 after saying it expects
second-quarter earnings to fall about 40% below the
year-ago 21 cents a share because of bad weather in the
Gulf of Mexico. The nine-analyst outlook called for another
21 cents during this year's second quarter.
Winn-Dixie (WIN:NYSE) declined 4 7/8, or 13.8%, to an
annual low of 30 7/16 after announcing first-quarter earnings
of 10 cents a share, 17 cents below the five-analyst view
and behind the year-ago 32 cents.
Safety-Kleen (SK:NYSE) slid 5/16, or 11.4%, to an annual
low of 2 7/16 after reporting fourth-quarter earnings of 6
cents a share, in line with the six-analyst forecast but
below the year-ago 38 cents.
MBNA (KRB:NYSE) jumped 1 1/4, or 9.1%, to 15 after
reporting third quarter profits of 27 cents per share, in-line
with the 18-analyst estimate and up from year-ago results
of 21 cents.
Symantec (SYMC:Nasdaq) dropped 9/16, or 5.1%, to 10
9/16 following its warning that it expects second-quarter
revenue to fall 10% below estimates and earnings to come
in around 18 cents a share. That would be below both the
seven-analyst outlook of 37 cents and the year-ago 35
cents. SG Cowen cut its recommendation to neutral from
buy.
Jabil Circuit (JBL:NYSE) took in 1 3/8 to 36 3/8 after
reporting fourth-quarter earnings of 35 cents a share, 3
cents higher than the 18-analyst estimate but behind the
year-ago 47 cents.
Greater Bay Bancorp (GBBK:Nasdaq) shed 7/8 to 25 3/4
after reporting third-quarter earnings of 47 cents a share, 2
cents higher than the five-analyst forecast and above the
year-ago 33 cents.
Tenet Healthcare (THC:Nasdaq) sloughed off 1 5/16 to 27
1/2 after posting first-quarter earnings of 44 cents a share,
1 cent above the 18-analyst forecast and above the
year-ago 38 cents.
Analyst actions
Prudential Securities dropped United Cos. Financial
(UC:NYSE) and Aames Financial (AAM:NYSE) to the
candid, and rarely said aloud, sell from hold. United Cos.
fell 1, or 22.5%, to an annual low of 3 7/16 while Aames fell
15/16, or 39.5%, to an annual low of 1 7/16.
Prudential also lowered FirstPlus Financial (FP:NYSE)
and American Business Financial (ABFI:Nasdaq) to the
more euphemistic hold from accumulate. FirstPlus plunged
1 5/8, or 36.6%, to an all-time low of 2 13/16 and American
Business plunged 3 9/16, or 34.3%, to an all-time low of 6
11/16.
Donaldson Lufkin & Jenrette (DLJ:NYSE) slid 1 to 22
15/16 following a downgrade to market perform from market
outperform from Goldman Sachs. Among today's other
flailing brokerages, Merrill Lynch (MER:NYSE) sank 4
3/16, or 10%, to an annual low of 37 3/4 after Morgan
Stanley Dean Witter started coverage with a neutral.
Morton's Restaurant (MRG:NYSE) shaved off 6 11/16, or
34%, to an annual low of 13 following a downgrade at
Lehman Brothers to neutral from buy.
IndyMac Mortgage (NDE:NYSE) stumbled 1 1/4, or
12.5%, to an annual low of 8 3/4 following a downgrade to
market perform from buy at BT Alex. Brown and to
attractive from buy at PaineWebber. PaineWebber issued
the same downgrade on Impac Mortgage (IMH:AMEX),
which collapsed 1 3/4, or 30.4%, to 4.
Anthracite Capital (AHR:NYSE) shed 7/16, or 9.6%, to 4
1/8, matching an annual low, after Prudential cut it to hold
from strong buy.
T. Rowe Price Associates (TROW:Nasdaq) lost 2 7/16, or
9.4%, to an annual low of 23 3/4 after Goldman
downgraded the stock from its recommended list to a
market outperform.
Veritas Software (VRTS:Nasdaq) lifted 2 3/8, or 9.1%, to
28 1/2 despite a downgrade to market perform from buy at
Bear Stearns. Amresco Capital Trust (AMCT:Nasdaq)
slipped 5/8, or 8.2%, to 7 after the firm lowered it to
accumulate from strong buy.
AON (AOC:NYSE) gave up 4 5/16, or 7%, to 57 9/16 after
Warburg Dillon Read cut the stock to buy from strong
buy.
Miscellany
Waste Management (WMI:NYSE) plummeted 8 3/16, or
17.4%, to 39 after the Chicago Tribune reported a California
prosecutor charged the company with 23 felony counts of
corporate espionage related to its efforts to frustrate
opponents of a Mohave Desert landfill beginning in 1995.
Deutsche Bank Securities cut its 1999 earnings
estimates on the company to $3.03 from $3.10. A couple of
other solid-waste stocks were down after Deutsche
trimmed earnings estimates for the companies on concerns
about the economy: Allied Waste Industries
(AWIN:Nasdaq) lost 1 5/8, or 7.5%, to 20 1/16 and
Browning-Ferris (BFI:NYSE) lost 1 5/16 to 31 11/16.
Bankers Trust (BT:NYSE) dived 4 1/8, or 7.7%, to an
annual low of 49 3/16 amid continued feebleness in
financeland. Today's Options Buzz took a look at the
stock's recent volatility.
American Express (AXP:NYSE) advanced 2 1/2 to 73 1/4
on the news that the Justice Department sued Visa USA
and MasterCard on antitrust grounds. The feds objected to
the credit card companies' policy of prohibiting banks that
carry their cards from offering competitors' cards.
Eli Lilly (LLY:NYSE) skidded 6 1/8, or 7.9%, to 71 3/8
after receiving a nonapprovable letter from the Food and
Drug Administration about Lilly's Zyprexa drug. The
popular drug is now used to treat schizophrenia, and Lilly is
seeking to have it approved for treating bipolar disorder.
Quaker Oats (OAT:NYSE) dropped 3 3/16, or 5.2%, to 57
15/16 following a negative Heard on the Street article in The
Wall Street Journal.
See Also
MARKET UPDATE
Stocks Set a
Slew of
Downside
Marks on Heavy
Volume
10/7/98 4 PM
OPTIONS BUZZ
Bankers Trust
Volatility Spikes
10/7/98 1 PM
MARKET ROUNDUP
Queasy Market
Lurches Lower,
Dow
Notwithstanding
10/6/98 5 PM
MARKET ROUNDUP
ARCHIVE
VIEW CHARTS
Dow
S&P 500
Nasdaq
Russell 2000
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