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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (2155)	9/19/2000 9:27:31 AM
From: Dealer	Read Replies (2) \| Respond to of 65232

<FONT COLOR=BLUE>MARKET SNAPSHOT UPDATE: Shares look to rebound Housing starts up 0.3% in August By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 9:21 AM ET Sep 19, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) - The stock market is poised for some gains at the open Tuesday after Monday's ugly sell-off. The question is: Will buyers remain enthused or will sellers use bounces as yet another opportunity to unload shares? December S&P 500 futures added 3.70 points, or 0.3 percent, and were trading roughly 4.90 points above fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, gained 34.50 points, or 0.9 percent. Among tech stocks witnessing gains in pre-market dealings, Cisco Systems (CSCO: news, msgs) edged up 26 cents to $60.32 over the Island ECN while Sun Microsystems (SUNW: news, msgs) added 25 cents to $115.50. See Indications. On the earnings front, Goldman Sachs (GS: news, msgs) posted third-quarter earnings of $1.62 a share, well ahead of the First Call estimate of $1.51 a share. The stock ended off 5.1 percent to $118.56 on Monday. In other earnings news, FedEx (FDX: news, msgs) reported first-quarter earnings of 58 cents a share, surpassing the First Call estimate of 54 cents a share. The company made 52 cents in the year-ago period. Shares ended off 59 cents to $38.61 on Monday. Late Monday, Dow-component Alcoa (AA: news, msgs) warned that third-quarter earnings will be in the range of 40 cents to 43 cents a share, less than the 49 cents per share expected by First Call. The company blamed softening in the transportation, building, construction and distribution markets as well as higher energy costs for the shortfall. Shares fell $1 below Monday's official NYSE close to $27.25 in Instinet. On the economic front, August housing starts edged up 0.3 percent to a 1.531 million rate, less than the 1.55 million rate expected from economists surveyed by CBS MarketWatch.com. Building permits fell 2.8 percent to a 1.468 million rate. See Economic Preview, economic calendar and forecasts and historical economic data. Over in the bond market, prices were a sliver higher after another sell-off on Monday as rising oil prices stoked inflation concerns. The 10-year Treasury note added 3/32 to yield ($TNX: news, msgs) 5.86 percent and the 30-year Treasury bond gained 2/32 to yield ($TYX: news, msgs) 5.95 percent. In the currency arena, dollar/yen (C_JPY: news, msgs) edged up 0.1 percent to 106.90 while euro/dollar (C_EUR: news, msgs) shed 0.1 percent to 0.8531. The euro reached a fresh all-time low against the dollar in intra-day dealings on Tuesday, falling to 0.8489. Multinationals, including Gillette (G: news, msgs) on Monday, cited the sagging euro as reason for a profit shortfall in its third quarter. "The strength in the dollar adds to the list of forces creating a drag on U.S. corporate profitability," noted Bridgewater Associates. "In the near future, corporations will be faced with paying the tab caused by today's heavy capital investment, which is being financed through debt. Add to that the surge in oil prices -- which is having the impact of squeezing profit margins. With these drags in place, it seems unlikely that U.S. corporations will be able to meet up to the lofty earnings growth that the marketplace is expecting," Bridgewater said. Julie Rannazzisi is markets editor for CBS.MarketWatch.com.