To: SSP who wrote (73736 ) 12/7/2000 5:40:42 PM From: Jim Bishop Respond to of 150070 Good evening Jim, Here is your Money Mail for Thursday, December 7. ALERT: As Money Mail was going to press, Intel warned that fourth quarter revenues will not grow by 4% to 8% as earlier predicted, but will be flat. THE BUZZ AT THE BELL The parade of bad news continued to bang and toot its way down Wall Street today, driving investors nuts for yet another day. Motorola warned that its earnings will be about 15 cents a share in this quarter, compared with its previous estimate of 27 cents. That previous estimate was itself a downward revision from 37 cents a share announced in October. And Goldman Sachs cut its 2001 earnings estimate for Microsoft from $1.91 a share to $1.88 a share, blaming softer sales of PCs. Motorola's shares lost 2% and Microsoft lost 6%, and that seemed to set the tone for today's trading. The Dow lost 45 points and the NASDAQ lost 43. Trading volume was moderate to heavy. From our "Terrors of the Times" file: * Ford and Firestone tire owners aren't the only people who should go slow in the turns these days. Now scooter and bicycle owners are facing recalls, lest they knock out their front teeth. Profile Design, a maker of mountain-bike parts, is recalling 8,000 handlebar stems that may break during use (if you call bouncing from boulder to boulder down a mountain trail "use.") And about 100,000 scooters from two firms - Kent Kickin' Mini Scooters and Kash 'N Gold - will be recalled, according to the Consumer Product Safety Commission, because the handlebars can cause the riders to lose control. Really? As a one-time rider of both bikes and scooters whose greatest pleasure in riding was to go beyond control, I wonder how anyone knows when it's the equipment's fault. Anyway, as parents we appreciate the effort. Moms and Pops everywhere, take note. * Speaking of recalls, can IPOs be recalled? Or underwriting ommissions? Rumors circulated today that the Securities and Exchange Commission is investigating commissions paid to underwriters for the first sales of some of the hot IPOs in 1998 and 1999. The suggestion is that some commissions may have been adjusted according to the size of the profits accumulated at the end of the first trading day. We wouldn't be surprised: Regulating the price of anything in scarce supply usually leads to payments under the table. It goes by a lot of names depending on the circumstances: Scalping, kick-backs, bribes, blackmarket etc.. Which reminds us: Have we told you about our recent shopping trip for a Sony Playstation 2? Now there's a hot, initial public offering. Peter Nulty Editor, Money Mail moneymail@online.cnbc.com MAJOR INDEXES AND VOLUMES * Dow Jones Industrials: 10618.49, down 45.89 or 0.43% * Dow Transports: 2795.74, down 19.97 or 0.71% * Dow Utilities: 385.45, up 1.73 or 0.45% * S&P 500: 1343.6, down 7.86 or 0.58% * Nasdaq Composite Index: 2752.87, down 43.63 or 1.56% * Russell 2000: 461.13, down 2.41 or 0.52% * 30-Year Bond Yield: 5.55%, up 0.02 * NYSE volume (preliminary): 1,067 million shares * Nasdaq volume (preliminary): 1,657 million shares * To see our complete U.S. index list:wwwrd.0mm.com SCOUTING REPORT: FRIDAY All eyes will be on two things on Friday: * The Florida Supreme Court may issue a ruling that finally puts and end to the presidential contest. If the court rules for the Bush team, there will be a good chance of another relief bounce in the market. If the decision goes to Gore, Bush- sensitive stocks like tobacco, drugs, and Microsoft might face selling pressure. Bear in mind, however, that the market's reactions to political events this fall have been short lived. * Friday's unemployment data. Wall Street is expecting unemployment to rise from 3.9% to 4%, signaling a loosening in the labor market that might help the Federal Reserve to relent somewhat from its high interest rate policies. Economic Calendar * Employment data (November) from Labor Dept. at 8:30 am EST STOCKS * It's a Value Investors' Market * Colin Ferenbach of The Haven Fund says the technology sector is not out of the woods yet, but much of the correction is over. The market, he adds, is now favorable for value investors. His picks...wwwrd.0mm.com * Stocks to Watch * Bob Pisani's stocks for Thursday:wwwrd.0mm.com