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

To: Dealer who wrote (22910)	12/8/2000 12:51:59 AM
From: Dealer	Respond to of 65232

STOLEN STUFF: Recap and Stocks to watch for Friday, 12- 8-00 Stocks sank today as Motorola (MOT) and National Semiconductor (NSM) joined Gateway, Altera, Apple and Banc of America on the list of high-profile earnings warnings. The Nasdaq was stung by the news that Microsoft (MSFT) had its 2001 earnings estimate clipped by Goldman Sachs because of slowing PC sales. The Nasdaq Composite finished with a 43- point loss to close at 2,752. Volume was an anemic 1.7 billion shares, with 40 stocks making new highs compared to 309 new lows. Blue chips felt the sting as well, as the Dow finished with a 47-point loss at 10,617. Volume on the NYSE was 1.1 billion shares, with 140 stocks making new highs compared to 105 new lows. After the close, Intel (INTC) issued a not so surprising ( the stock has slid 31% in the last 2 weeks in anticipation of a warning) revenue warning for Q4. The chipmaker expects revenue to be flat for the quarter “plus or minus a few percentage points,” as opposed to an expected 4% to 8% rise. The stock was halted pending the news, dropped as much as 7% after it reopened, but came back to trade higher on heavy volume. As I said last night, we’re now entering earnings warning season, and the volume of warnings will reveal to us exactly how much the U.S. economy has weakened. Most of the bad news is already factored into the tech stocks, and is unlikely to be a major event for more than a few hours, as evidenced by Intel (INTC) this evening. All eyes will be on Friday’s employment report as a weak report will raise the possibility of an actual rate cut by the Fed at the Dec. meeting, as opposed to just the expected shift in bias. Conference Spotlight: Lehman Brothers continues with its Telecom Trends and Technology Conference on Friday. Some of the companies giving presentations include ADC Telecom (ADCT), Avici Systems (AVCI), Juniper Networks (JNPR), Redback Networks (RBAK), Cisco Systems (CSCO), Extreme Networks (EXTR), Tellabs, Inc. (TLAB), Qualcomm (QCOM), Foundry Networks (FDRY), Ciena Corp (CIEN), and Akamai Technologies (AKAM). Intel (INTC): Company warns that it sees Q4 revenues below expectations; expects revs to be flat with Q3. Company had previously guided sequential revenue growth up 4-8% from Q3's $8.7 bln, now expects flat sales from Q3. INTC sees gross margins unchanged at 63%. Company cites slowing worldwide economy impacting PC demand. Emulex (EMLX): Announces the acquisition of Giganet Inc. for about 4 mln pre-split common shares or about $645 mln. EMLX sees a $10 mln charge for acquisition. Also announces it sees revenue of $285 mln for FY01; expects EPS of $1.48 for FY01 vs the First Call mean of $1.43. Priceline.com (PCLN): Announces it will eliminate about 11% of workforce (48 positions). Company will indefinitely postpone the implementation of previously planned business-to-business, term life insurance and cellular telephone services. Advanced Digital (ADIC): Reports Q4 earnings of $0.14 a share, $0.02 better than the First Call consensus of $0.12, vs year-ago earnings of $0.09; revenues rose 20.8% to $76.09 mln from a year-ago of $62.99 mln. Ask Jeeves (ASKJ): Company announced that Rob Wrubel is stepping down as CEO and resigning his Board position. Company warns that it expects to report revenue of approximately $25 mln (lower than past two quarters) and a pro forma net loss from continued operations of approximately $18 mln, or ($0.50) per share. Current First Call estimate is ($0.33). Stock was halted pending the news and traded down 3 points when it reopened.