MARKET TALK: March S&Ps May See Late Pressure
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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3:35 (Dow Jones) Floor traders say a well telegraphed trade, selling S&Ps
and buying mid-caps to rebalance portfolios, is expected to surface and put
some pressure on S&Ps going into the close. "Supposedly after 2:30 (CST)
they're going to do it today and Monday," one trader says. Word is as much
as 6,000 S&Ps could be sold and 3,000 mid-caps could be bought, he said.
(DMC)
3:33 (Dow Jones) Maybe it's the "We like to see you smile" promise. For
whatever reason, McDonald's (MCD) now will Webcast its two Q&A sessions with
Wall Street on Monday. Initially analysts say they were told the meetings
were accessible by invitation only. But now the fast-food chain says the
noontime and afternoon events will be open for the world to hear live (at
www.mcdonalds.com/corporate/investor/. (RLG)
3:17 (Dow Jones) In upgrading Intel (INTC), A.G. Edwards says shares reflect
most of the bad news, though there may be cause for more "bloody" days for
tech stocks. Says there is little downside risk to stock - maybe to the $25
level as more bad news comes out of the industry. Says don't chase stock
above price target of $40-$45. (TG)
3:06 (Dow Jones) Teligent (TGNT) slides in heavy volume on the view that the
telecom upstart's $250 million in new funding from Rose Glen Capital
Management, announced Friday afternoon, is no slam dunk. "There are some
smart money investors" - including previous investors Liberty Media and
Hicks Muse - "that we would have liked to see step up and they were
conspicuously absent," says BB&T Capital Markets analyst Ryon Acey. "You've
got to ask yourself if they're not willing to get in now, when will they be
willing to get in?" (JAW)
2:51 (Dow Jones) Airlines are rallying thanks to recent declines in crude
and jet fuel prices and confidence the economy is cooling without hurting
airline revenue. Cheap valuations and a respite in a flurry of estimate cuts
are also helping. AMEX airline index up 5.2%. UAL, AMR up more than 6%,
Delta (DAL) ahead more than 5%. (SON)
2:46 (Dow Jones) March S&Ps and Nasdaq pare back gains, but remain strong as
the markets briefly moved to new highs on the Fla. court news. "It's almost
getting to be predictable, that we pop up on election news and come back to
where we were," one trader says. (DMC)
2:41 (Dow Jones) Nymex crude hovers above $28 a barrel after falling to
intraday low of $27.85 on continued reaction to agreement between UN and
Iraq on Dec. oil prices. Pushes through $28.25 and $28 support also
accelerated selling. Although Iraq's resumption of exports would not bring
new oil onto the market traders took the development as a reason to sell.
"This is a market that is absolutely refusing to look at anything bullish,"
said one analyst. Jan. crude down 95 cents at $28. (MSX)
2:33 Treasurys flicker after Florida Court in Seminole Co. goes against
Gore., with 30-year moving 5/32 lower, then recovering almost immediately,
now at same level as prior to court announcement, down a point at 109 24/32,
yield up 6 bp on session at 5.57% (JNP)
2:24 (Dow Jones) Stocks taking off on favorable Bush ruling in Martin and
Seminole counties, even though ruling was largely expected. DJIA up 177 at
10797, Nasdaq jumps 170 to 2923. (TG)
2:21 (Dow Jones) Widespread talk of accounting irregularities at Sun
Microsystems (SUNW) weighing on its stock, which is off 6% on four times
average volume. Merrill out defending company, saying Sun CFO is
conservative and co. "denied there are any accounting issues from the past
or going forward." (MLP/RR)
2:16 (Dow Jones) Credit quality of commercial paper continues to erode, with
19 downgrades in 4Q, says Moody's. CP downgrades now topping upgrades by 5-1
margin and could hinder borrowers looking to raise capital, Moody's says.
2:06 (Dow Jones) Next week, two of the nation's largest drug makers will
meet with Wall Street to showcase their wares, flash their pipelines, and
maybe even give detailed guidance for next year. Pfizer Inc.'s (PFE) meeting
takes place Monday in New York. Merck & Co.'s (MRK) is Tuesday at its
Whitehouse Station, N.J. headquarters. (BMM)
1:57 (Dow Jones) Stocks near session highs in front of expected Fla. court
ruling, seen favorable for Bush. Unless there's a surprise, rest of session
should go smooth. SOX up 10%, tech in general surging, along with biotech,
financials, transports. DJIA up 125 at 10742, Nasdaq Composite up 142 at
2894, and S&P 500 gains 27 to 1371. (TG)
1:51 (Dow Jones) Stock mutual funds rallied in the week ended Thursday as
the market received an early Christmas present in the form of a broad hint
that the Federal Reserve could be ready to start easing soon. Funds that
invest in technology stocks, which had been hit particularly hard by earlier
concerns about a slowdown in the economy, enjoyed the strongest recovery
this week. Science and technology funds returned an average 11.28%,
according to Lipper Inc. By contrast, the average U.S. diversified equity
fund tracked by Lipper returned 3.87% in the week. (AMB)
1:43 (Dow Jones) Treasurys: long bond now down more than a point, as market
players square positions, anticipating possible good news for Bush in his
quest for U.S. presidency, says trader. A Bush victory would be broadly
perceived as more negative for bonds than a Gore victory, since Bush
perceived likely to attempt tax cuts that might eat into surplus more.
30-year down 32/32, at session low, at 109 24/32, yield up 6 bp to 5.57%
(JNP)
1:39 (Dow Jones) "Perhaps the most telling evidence that profit projections
are still too optimistic is the spread of A-rated bonds over Treasuries,"
says Kent Engelke of Anderson & Strudwick. The gap is higher than the LTCM
induced credit crunch, he says, which at the time was the greatest in a
decade. He adds that the fact Moody's is calling for more defaults is
frightening in an economy that is still expanding. (TG)
(END) DOW JONES NEWS 12-08-00
03:35 PM
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