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

To: Dealer who wrote (5809)	10/5/2000 8:40:16 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

INTC--U.S. stocks seen flat to lower; Dell impact may be limited By Haitham Haddadin NEW YORK, Oct 5 (Reuters) - U.S. stocks were seen flat to a little softer at the open on Thursday after several warnings of disappointing financial results, including one from the world's No. 2 personal computer maker, Dell Computer Corp. (NasdaqNM:DELL - news). Technology stocks managed a modest rally on Wednesday as investors took a break from fretting over Corporate America's profit growth and snatched up some key technology shares. But Dell Computer put a damper on sentiment, warning in a statement issued after the close of trading that weak demand in Europe would lead to softer-than-expected revenues in the third quarter. Dell stock slumped to $25 in after-hours trading, and was again down at $26-1/4 in pre-open trade, from its Wednesday close at $28-3/16. Another warning came from mail-metering giant Pitney Bowes Inc. The Dell warning could put the heat on the high-tech sector, analysts said, but the damage could be limited as key indices like the Nasdaq are already discounting similar warnings that had rocked the market earlier, including a bombshell announcement Sept. 21 from leading chip maker Intel Corp. (NasdaqNM:INTC - news) that its revenues would lag. Another warning had come from Apple Computer (NasdaqNM:AAPL - news). ``On the Dell situation, we know by now after Intel and Apple (warned) that the PC business is slowing down, so by the time Dell tells you the same thing, you are not going to get the same reaction,'' Larry Wachtel of Prudentials Securities. ``After Intel and after Apple there were violent reactions,'' he said. With more than an hour to go to the open, Nasdaq 100 index futures for December were down 7.50 points at 3,470, off earlier lows, and S&P 500 index futures were up 2.80 points at 1,453. ``What other technology companies have been saying has been built into the market over the last several weeks,'' said Scott Bleier, chief investment strategist at Prime Charter Ltd. after the Dell announcement. ``I think Dell is fairly valued, and the damage may be less than expected.'' Meanwhile, the market is awaiting jobless claims data for the week ended Sept. 30, with forecasts calling for an increase in these claims to 300,000 from the previous week's 287,000 claims. The figures are due at 8.30 a.m. EDT (1230 GMT). Another warning came late Wednesday from Pitney Bowes Inc. (NYSE:PBI - news), which also had bad news about its third-quarter earnings after the close, saying they would fall almost 4 percent below previous estimates because of competition in office products and weakness in foreign currencies. And clothing retailer Gap Inc. (NYSE:GPS - news) on Wednesday said same-store sales fell 8 percent in September, falling short of the company's expectations, as margins also slipped and the company continued to struggle with an inventory backlog at its Old Navy division. Gap shares finished at $19-7/8; its sales report came after the close. On Wednesday, the technology-heavy Nasdaq Composite Index (^IXIC - news) rose 67.27 points, or 1.95 percent, to end at 3,523.10, as it staged a late-day rebound. The blue-chip Dow average rose 64.74 points, or 0.60 percent, to 10,784.48, also helped by demand for the high-tech heavyweights, and the shares of manufacturing and chemical companies in addition to retailers. On the good news front, Micron Technology Inc. (NYSE:MU - news), the memory chip maker, late on Wednesday reported fiscal fourth-quarter earnings that easily topped analysts' forecasts. Its shares rose to $49 in pre-open trade from a $46-15/16 close, and the strength could help some of the other semiconductor stocks which had accounted for much of Nasdaq's advance on Wednesday. The Philadelphia Stock Exchange Semiconductor Index (^SOXX - news) rose more than 6 percent on the day. In other news, the head of U.S. computer printer maker Lexmark (NYSE:LXK - news) said on Thursday he expected 2000 earnings little changed compared to the year before in the $2.30 to $2.35 per share range, with the weak euro a factor hurting the bottom line. Lexmark shares closed at $37-1/8 on Wednesday.