MARKET TALK: How Much Lower Can Intel Go?
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
4:41 (Dow Jones) The optimist might say, "Well, at least this news isn't
coming with Nasdaq at 5000," but things are getting a little dicey. After
Intel's (INTC) news, Priceline (PCLN) says it has cut 11% of its workforce
and is postponing some initiatives and taking a charge. With Intel crushed
in recent months, how much selling is left? There wasn't a lot left in
Motorola today. (MOT). (TG)
4:27 (Dow Jones) Friday's session is going to be a wild one. Intel (INTC) 4Q
revenue is going to be well short, a big payroll number gets released, and a
Fla. court could provide a huge ruling regarding the election. For what it's
worth after this Intel news, Three-Five Systems (TFS) also warned. (TG)
4:18 (Dow Jones) Intel (INTC) halted on Nasdaq. News pending. There has been
talk of preannouncement in recent weeks. (TG/MLP)
4:13 (Dow Jones) Despite easy comparisons and a kids' meal promotion tied to
"The Grinch" hit movie, Wendy's International (WEN) November sales were
"somewhat disappointing," says J.P. Morgan's John Ivankoe. While company
stores had a 3.4% gain, the number was below expectations. Concerned about
flattening traffic at fast-food restaurants, he would "trade around this and
recent strength of Wendy's stock and prefer to buy at lower levels." (RLG)
4:05 (Dow Jones) Shares of Anheuser-Busch (BUD) pushed higher as investors
headed for consumer staple stocks and out of some high-flying technology
stocks. Other consumer stocks that were up include Coca-Cola Co. (KO),
Coca-Cola Enterprises Inc. (CCE), PepsiCo Inc. (PEP) and Adolph Coors Co.
(RKY). (DJH)
4:03 (Dow Jones) Stocks close lower, but session was timid in front of
Friday's key data and possible election ruling. Actually, for all the bad
news Thursday, in the form of lower EPS estimates, the market held up pretty
well. Techs mostly soft, and internals not too good, but decent employment
number - i.e. more people out of work - could give us a boost. Stocks are
definitely starting to digest bad news a little better, a good sign. We just
don't need anymore of that news. DJIA off 45 to 10617, Nasdaq falls 44 at
2752, and S&P 500 loses 7 to 1344 (preliminary). (TG)
3:55 (Dow Jones) President Clinton, discussing post-White House plans in
interview with Rolling Stone magazine, says "the challenge is to trade power
and authority broadly spread for influence and impact tightly concentrated."
(JC)
3:40 (Dow Jones) Despite slight recovery in stock futures, the light volume
and trading pattern in late afternoon is not lending stability, floor
traders say. "The market is feeling kind of weak," says one. Volume on the
outright March Nasdaq and S&Ps was particularly weak. (ZHS)
3:38 (Dow Jones) Rep. Ron Paul voices agreement with those who say a
recession is on the way, and says the Fed is "the real cause of the business
cycle," bringing booms that inevitably lead to busts. (JC)
3:28 (Dow Jones) Merrill economist Hartnett revises down U.S. growth to 3.3%
in 2001 from previous 3.7% because of weaker outlook for capital spending,
especially telecom equipment. Given weaker growth outlook, Merrill Lynch
expects Fed to cut rates 25 bp at March 2001 FOMC meeting and ease again by
25 bp in June. (JNP)
3:25 (Dow Jones) Former Treasury spokesman Howard Schloss appointed senior
VP of communications and government relations for NASD and its subsidiaries.
(JC)
3:14 (Dow Jones) Merrill Lynch international economist Michael Hartnett
downgrades OECD countries 2001 global growth outlook to 2.6% from 2.9%. U.S.
downgraded to 3.3% from 3.7%. Euroland growth revised down to 2.8% from 2.9%
(JNP)
3:07 (Dow Jones) March S&Ps sink to new lows and dip into the gap area from
earlier this week, taking out support at 1362.50. Next support area not
until gap is closed, at 1355.50, which would wipe out all gains seen on
Tuesday, trader says. (DMC)
2:54 (Dow Jones) Signs of a slowdown in the U.S. economy prompted Credit
First Boston analyst Gibboney Huske to cut her 2001 earnings estimates for
the stocks in her imaging sector. She lowered her view on Lexmark
International (LXK) to $2.60 a share from $2.65; Eastman Kodak (EK)to $5.10
from $5.40; Pitney Bowes (PBI) to $2.60 from $2.65; and Polarois (PRD) to
$1.40 from $1.60. (DDO)
2:49 (Dow Jones) Cutting its deal price to sell helped Harvard Bioscience's
(HBIO) stock. After pricing an IPO of 6.4 million shares at $8 - well below
original price talk of $11 to $13 a share - the stock is now trading at $11,
for a 37.5% gain. (RJH)
2:44 (Dow Jones) Stocks pulling back a bit, with tech names building on
earlier weakness. Given MOT, MSFT, and NSM developments, not a lot of
impetus to dive in. Short-term players may be nervous about payroll numbers
tomorrow, or possibility of more after-the-close warnings, and shorts likely
don't want to get squeezed by a Fla. court ruling that could basically end
the election fiasco. DJIA off 55 at 10609, Nasdaq drops 71 to 2726, and S&P
500 loses 10 to 1341. (TG)
2:30 (Dow Jones) A.G. Edwards downgraded Bank of America (BAC), but believes
dividend is secure and that credit quality issues are largely priced into
the shares. Price could be limited near term, though, until trends begin to
improve. Price target now $51, a 10 multiple on next year's earnings, a
below-average valuation assumption. (TG)
2:18 (Dow Jones) Motorola's (MOT) profit warning is not a reflection of weak
global handset demand, noted Merrill Lynch analyst Michael Ching. "The
company did indicate that demand for handsets looks relatively robust,"
Ching said. "They haven't changed their global forecast for handsets for
this year or next." Ching said the announcement was a sign of a problem with
execution at Motorola. He cut his intermediate term rating from buy to
accumulate, saying a lower rating was not warranted given Motorola's low
valuation. (JDB)
2:08 (Dow Jones) Health-care investors might want to take note of some
recent comments by Sen.-Elect Hillary Clinton. Clinton, who was sharply
criticized by health-care providers and HMOs in her first attempt to reform
the U.S. system, said Thursday in an Associated Press interview that the
matter is "still one of my priority concerns." There's one important change
in her position, though: This time, she tells AP, any reform will be done
"in a step-by-step way." (RJH)
2:04 (Dow Jones) March S&Ps inch to new session lows, with locals dominating
trade. Weakness in Nasdaq and DJIA also lends pressure, traders say. "What
we're seeing is a continuation of the weakness. The fundamentals are still
bad, nothing has changed," one trader says. Another says reason not selling
of harder is that shorts don't want to get caught in pro-Bush ruling. (DMC)
1:54 (Dow Jones) Ventro Corp.'s (VNTR) stock is off 17% after the company
announced it's closing two of its online marketplaces, including its
original business. Ventro said the closing of the two unprofitable
marketplaces -- Chemdex and Promedix -- would result in the laying off of
almost half its employees. Ventro began life as Chemdex, an electronic
marketplace for chemicals and other life-sciences supplies, and later it
expanded into other vertical markets. (RS)
(END) DOW JONES NEWS 12-07-00
04:41 PM |
