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To: Dealer who wrote (26408)	7/24/2000 9:26:50 AM
From: abuelita	Read Replies (2) \| Respond to of 35685

Good morning Dealie Quiet this morning isn't it. Rose

To: Dealer who wrote (26408)	7/24/2000 10:16:54 AM
From: Dealer	Respond to of 35685

MARKET SNAPSHOT Mild losses for shares Another heavy earnings week in store By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 9:52 AM ET Jul 24, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) - The major averages retreated modestly Monday as trading kicked off for another earnings-packed week. Among the early gainers were drug, biotech and transportation shares while retail, Internet, computer hardware and financial issues declined. The Dow Jones Industrial Average trimmed 35 points, or 0.3 percent, to 10,698 at 9:47 a.m. The Nasdaq Composite slipped 17 points, or 0.4 percent, to 4,076 while the Nasdaq 100 Index lost 8 points, or 0.2 percent, to 3,899. The Standard & Poor's 500 Index erased 0.2 percent while the Russell 2000 Index of small-capitalization stocks edged up 0.1 percent. In the meantime, volume stood at 71.6 million on the NYSE and at 112 million on the Nasdaq Stock Market. Decliners beat advancers by 10 to 9 on the NYSE while winners bested losers by 15 to 13 on the Nasdaq. Separately, Trim Tabs said equity funds had redemptions of $1.1 billion in the three days ending June 20 for a monthly rate of negative $8.4 billion. While aggressive growth funds saw an inflow, tech funds had their largest outflow for any period during the past six weeks. Trim Tabs said it's becoming cautiously bearish due to slowing inflows as well as pressure from a relatively large backlog of new offerings. Stock market liquidity remained positive, Trim Tabs said, chiefly because of two big cash takeovers of U.S. public companies, including Deutsche Telekom's offer for VoiceStream. Also contributing to the enhanced liquidity was a pickup in announced stock buybacks, the most since the end of May, Trim Tabs said. In strategy news, Donaldson Lufkin & Jenrette's Tom Galvin remains overweighted in technology, health care and communication services stocks. Despite continued worries about valuation, Galvin believes tech companies will continue to offer superior new-business prospects and returns on capital compared to other sectors that now face a moderating economy. Meanwhile, PaineWebber's Edward Kerschner sees 10 to 15 percent gains in the S&P 500 over the next 12 to 18 months. "While modestly attractively-valued on a price-to-earnings basis, stocks remain modestly overvalued relative to bonds and cash," Kerschner said. Specific movers In merger news, Deutsche Telekom (DT: news, msgs) has agreed to buy VoiceStream Wireless (VSTR: news, msgs) in a cash and stock deal valued at $50.7 billion. Deutsche Telekom is paying a 30 percent premium to purchase VoiceStream. Read the story. VoiceStream lost 4 1/4 to 145 1/2 while Deutsche Telekom lost 3 1/2 to 48. Canada's Nortel Networks (NT: news, msgs) climbed 2 to 83 1/4 following A Wall Street Journal report that it's in talks to engineer a $100 billion union with Corning. The deal would call for Nortel to sell its optical-parts unit to Corning in a stock swap resulting in Nortel owning 50 percent of Corning. Read the full story. Corning's shares fell 15 1/2 to 267 3/4. Another parade of earnings releases will make its way through Wall Street this week. First Call notes that 135 Standard & Poor's companies will reveal their quarterly results this week while another eight Dow companies will report. So far, over half of the S&P 500 and Dow companies have reported, First Call added. Dow-component Merck (MRK: news, msgs) posted second-quarter earnings of 73 cents a share, beating the First Call estimate of 69 cents a share. The company made 61 cents in the year-ago period. Merck also said it's reasonable to expect full year 2000 results to come in above Wall Street's current estimates, which Merck said stand at $2.76 to $2.81. The Dow company also said the earnings growth rate for the first two quarters might be somewhat stronger than the remaining two quarters. The stock added 3 to 66 3/4. In other earnings news, Priceline.com (PCLN: news, msgs) said it lost a penny a share in its second quarter, beating the First Call estimate of a loss of 3 cents a share. The company lost 10 cents a share in the year-ago period. See full story. The stock ended off 2 1/2 to 37 9/16. Treasury focus Bond prices sloshed around at mildly negative levels in early trading. The week may be an active one for Treasury securities as there's a good deal of economic news to react to. The 10-year Treasury note shed 1/8 to yield 6.02 while the 30-year bond lost 6/32 to yield 5.805 percent. See Bond Report. Key economic reports set for release this week include: the second-quarter employment cost index -- which is a broad measure of wages and benefits -- as well as the advance reading of second-quarter gross domestic product. Further, July consumer confidence and June durable good orders will be out to give investors a view of the economy's performance. No economic news is set for release on Monday. View Economic Preview, economic calendar and forecasts and historical economic data. And Alan Greenspan will bring his thoughts on the U.S. economy before the House Banking Committee on Tuesday. It will be a repeat of the Fed Chief's speech before the Senate Banking Committee last Thursday. In the currency market, the dollar edged up 0.3 percent to 109.05 yen following an impressive rally on Friday that saw the pair climb to levels not witnessed since early June. Euro/dollar slipped 0.3 percent to 0.9338. See latest currency rates. In the commodity market, September crude lost 6 cents to $28.50 while the Bridge CRB index fell 2.06 to 220.10. Julie Rannazzisi is markets editor for CBS.MarketWatch.com.