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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (117939)	12/3/2000 11:30:55 AM
From: Jenna	Read Replies (2) \| Respond to of 120523

Is MSFT and INTC next to issue earnings warnings? The Tech Wreck Deals 75% (they finally admit as we have the last 2 weeks best place to have left money was in cash, 2 months too late)....It is the end of a valuation era but not the end of technology stocks.. Companies will be able to boos their shoares only with real earnings power, NOT HYPE AND HOT AIR which is what we have been saying since September. Investors had better pray that November doesn't set a trend. Battered by continued confusion surrounding the U.S. presidential elections, further signs that the economy's slowing and some unexpectedly savage warnings about corporate earnings, markets headed lower over much of last week. Despite modest rallies Monday and Wednesday, the Dow Jones Industrials closed the week down 96 points, at 10,373. The S&P 500 fell 26 points, to close at 1315. Rounding out this Fearsome Threesome, the Nasdaq Composite, on the heels of Friday's fading rally, tumbled 259 on the week, nearly 9%, to 2645. The Nasdaq now has declined almost 50% from its March 10 high. If the Nasdaq cedes more ground in December, that would add up to three consecutive months of losses -- only the third such quarterly drop in a decade. It would take a decline of only another 200 points or so for the index to begin testing the lows established in early '99. At that point, it would be safe to say that technology investors would have done much better had they kept their money in cash. Although the market's southerly trend was well established before Thursday's session, the week's key event was an announcement from Gateway, the personal computer maker, that prompted shellshocked analysts and investors to throw out the window their longstanding confidence in the company's ability to meet Wall Street's earnings targets. As CEO Jeff Weizen noted, poor sales over the Thanksgiving weekend prompted a major rethink about both immediate earnings prospects and the general outlook for computer sales. In short, Gateway warned that fourth-quarter earnings would be about 37 cents a share, compared with Street expectations of 62 cents. This was hardly the year's first earnings warning from the PC crowd; Dell Computer alone has had four. Coupled with bad news from several other technology companies, however, it sent shudders through the market. In late trading Thursday, Gateway stock plunged as low as 17.50, before rebounding to 19.12 Friday, still down 14.38 on the week, and the week's worst performer in the S&P 500 Index. Other tech stocks suffered in the backlash, with Cisco falling from 52 through the magic 50 level, to 48.50. Dell fell to 18.44 from 24.30, Microsoft slid to 56.63 from 70, and Intel (the week's worst Dow performer) gave up 9.88 to 34.12. The market also was rife with rumors that Microsoft and Intel would be next to issue earnings warnings.