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

To: Dealer who wrote (8467)	10/18/2000 7:15:07 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

IBM--U.S. stocks shaky in Europe as IBM rankles LONDON, Oct 18 (Reuters) - U.S. stocks looked set for a shaky opening on Wednesday, as disappointing figures from bell-wether IBM (NYSE:IBM - news) revived worries about the health of corporate America, European dealers said. ``The mood at the moment is obviously still very cautious,'' said one. ``The market is being driven by fear and there is a lot of negative comment around the techs.'' International Business Machines Corp. traded at $101 on Instinet, up from its lows around $100 seen in after hours trading, but still well below a $113 close in New York as the company posted an unimpressive three percent rise in sales in the third quarter. The sale figure overshadowed IBM's 18-percent profit rise, which met expectations, as well as reassuring figures from chipmaker Intel Corp. (NasdaqNM:INTC - news), which said third-quarter earnings rose 52 percent to 41 cents a share, topping recently lowered expectations. Intel traded at $37-1/8 on Instinet, up from its $36-3/16 close but slightly below its $37-1/2 level seen in after-hours trade. Declines in December futures contracts on key U.S. indices were signalling a weak opening in New York, with the Nasdaq Composite trading at 3,142.0, a sharp discount to fair value seen at 3,206.77. The broadly-based S&P 500 index was changing hands at 1,354.20, also a discount to fair value of 1,362.08. However dealers said the day's performance also hinged on a further heavy schedule of earnings from U.S. companies, as well as on consumer price data due before the market opening. Companies reporting ranged from Internet group America Online (NYSE:AOL - news) through planemaker Boeing Co. (NYSE:BA - news) and software giant Microsoft Corp (NasdaqNM:MSFT - news) to financial services group Chase Manhattan Corp. (NYSE:CMB - news). Consumer price figures for September were expected to be up 0.2 percent excluding volatile food and energy items, in line with the increase seen the month before. ``We have a bunch of top names reporting as well as the CPI numbers and all of that could affect the market,'' anther dealer said. On Tuesday, U.S. stocks fell sharply amid deepening worries about earnings trends in the key semiconductor sector, with the Dow Jones Industrial average threatening to dip below the 10,000 mark. The Dow closed down 149.09 points or 1.5 percent at 10,089.71, while the broader Standard & Poor's 500 index fell 24.65 points or 1.8 percent to 1,349.97. The Nasdaq composite index dropped 76.35 points or 2.3 percent to 3,213.93.#