Tuesday Data To Move Stocks? Very Confident
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
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11:59 (Dow Jones) Some real interesting possibilities for stocks on Tuesday.
Tons of data, but focus likely to home in on confidence (10 a.m. ET). Chance
of early rate cut may largely rest on these numbers, so big drop in
confidence, while likely pushing us closer to recession (if we're not
already in on) may well spur rally in stocks. A stable number, while perhaps
leaving economy on more solid footing, may disappoint intermeeting-cut
hopefuls, perhaps causing pullback in stocks. Nothing groundbreaking in
these thoughts, given investors'
what's-good-for-Main-Street-is-not-always-good-for-Wall-Street stance, but
something to think about. (TG)
11:47 (Dow Jones) Retail report: Sector generally better, with share gains
from mild to very strong. Lowe's (LOW), of course, is standout after meeting
4Q number and waxing cautiously optimistic about future. LOW up 7%. JC
Penney (JCP) up 4% despite being named one of worst-performing companies in
a three- to five-year span by a special section in Monday's Wall Street
Journal - that article also said JCP now on right track with CEO Allen
Questrom. Other leaders: Home Depot (HD), likely riding up with LOW, and May
Dept. (MAY), up 3%. On May, by the way, J.P. Morgan's Shari Eberts told CNBC
Monday that dept. stores' earnings will better discounters this year. (GC)
11:41 (Dow Jones) CSFB cuts estimates on Cisco (CSCO), citing mounting
evidence the slowing U.S. economy is having a worse-than-expected impact on
technology companies. "Because Sun's (SUNW) and Cisco's markets and growth
patterns bear so much similarity to one another, we believe Cisco's current
quarter is likely to come in below the range recently projected by
management," the firm says in note. Price target goes to $40 from $45.
Shares off 3% at $26.25. (TG)
11:35 (Dow Jones) Nymex crude lower on continued concerns about the U.S.
economic slowdown and expectations for weaker oil demand. Seasonally weak 2Q
demand might be lower still if consumers and corporations cut back spending
due to slowdown, analysts say. Latest comments from OPEC officials
suggesting an output cut at March meeting may not be a foregone conclusion
are also weighing on prices. April crude down 44 cents to $28.60. (MXF)
11:31 (Dow Jones) Merrill Lynch remains "somewhat cautious" on the
advertising sector, until analysts can determine whether big marketers will
delay spending during the first half of the year in anticipation of more
spending in the second half, or if they are simply cutting ad budgets dead.
The most likely outcome, the firm says, "is probably a mix of the two." (BS)
11:24 (Dow Jones) ADRs of Turkish cellular company Turkcell (TKC) are up
9.6% to $4.55 on a recovery round after having lost 39% of their value last
week amid political and economic turmoil in Turkey. (AG)
11:20 (Dow Jones) Does Revlon (REV) deserve a second (tenth?) chance? After
closing in the red for the ninth straight quarter, the cosmetics maker is
trying to convince investors that its restructuring plan will soon turn
things around. Wall Street is wary but has put any decision on a hold until
1:30 p.m. ET today, when Revlon will explain its story to analysts. The
shares were down almost 3%. (ELM)
11:13 (Dow Jones) Human Genome Sciences (HGSI) rejoiced at the good news
that one of its collaborators, GlaxoSmithKline PLC (GSK), has begun testing
products developed from Human Genome's genetic data supplied under a 1993
agreement. GlaxoSmithKline is conducting clinical trials on a possible drug,
called SB-435495, that reduces the level of an enzyme forming fatty plaques
inside the blood vessels. As a result, heart attacks could be prevented.
Human Genome shares rose 10.6%. (BMM)
11:07 (Dow Jones) Investors pulled $3.4 billion from stock mutual funds over
Wednesday and Thursday last week, according to TrimTabs.com. Outflows are
estimated to have totaled $1.06 billion for aggressive growth funds, $1.16
billion for growth funds, and $1.43 billion for international funds.
Conservative growth & income funds attracted a moderate inflow of $255
million. After the latest data, TrimTabs downgraded its February flow
estimate to outflows of $12.5 billion, compared to a healthy $27.3 billion
inflows in January. That would be the largest-ever monthly outflows,
exceeding $11.7 billion in August 1998. (YXH)
11:01 (Dow Jones) Emmis Communications' (EMMS) stock under pressure as Banc
of America Securities sees company pre-announcing its FY01 4Q earnings and
lowering 2002 guidance. Firm is worrried that co's TV business maybe
"significant drag" and radio businesses face challenging environment. Emmis
announced Friday it will hold a conference call tonight. Shares off 10% at
$27. (ALF)
10:55 (Dow Jones) Wall Street underwriters remain skittish about filing new
IPOs. So far this year, just 32 companies have filed to go public, according
to Thomson Financial Securities Data. This time last year, 145 companies had
filed. (RJH)
10:50 (Dow Jones) Tough start for Microsoft (MSFT) in its landmark antitrust
appeal. The seven appeals court judges grilled Microsoft attorney Richard
Urowsky with questions during his opening statements on the issue of
monopoly maintenance as he defended the company's actions in the Web browser
market. Stock up 2%. (MLP)
10:42 (Dow Jones) Expect more weakness in stocks, says Bernie Schaeffer,
citing the same problme that had him correctly calls the last round of
selling: there's still too much bullish sentiment.
10:36 (Dow Jones) Don't go there. UBS turns negative on lodging sector after
talking to industry and others and seeing some weak numbers in Feb. for
lodging's key metric: Revpar, or revenue per available room. In a note, UBS'
Keith Mills lowers 2001 and 2002 Revpar growth outlook for some companies by
a whopping 50%, to 2% to 2.5%. In addition to fewer vacationers, UBS also
expects corporate travel to fall off. Downgrades Host Marriott (HMT) and
Starwood Hotels (HOT) to hold from strong buy, and Four Seasons (FS), Hilton
(HLT), Marriott (MAR) and others to hold from buy. (GC)
10:27 (Dow Jones) In upgrading Dow Chemical Co. (DOW) to buy, Deustche Banc
Alex. Brown analyst John Moten said the petrochemical cycle has troughed
because all the classic indicators are in place: excess capacity, depressed
cash margins and slower macroeconomic growth. He expects these conditions to
persist for the next two to three quarters. The good news is the bad news is
already priced into Dow's stock, Moten said. He has set a 12-month price
target of $36 for Dow shares, which recently traded at $30.49, up $1.04, or
3.5%. (CCC)
10:21 (Dow Jones) The sell-off in the banks is yet another chance to snap
them up on the cheap, says analyst Ruchi Madan of Salomon Smith Barney, as
investors were spooked by confusing economic and inflation data. "We expect
upcoming data and comments by Greenspan will calm these fears," Madan said.
She expects either an economic recovery, or a more aggressive Fed, will be
positive for the banks. Bank of New York (BK) looks particularly cheap,
trading at only 18 times its 2002 earnings forecast, despite 15%-17%
revenue-driven sustainable EPS growth, she said. She also has buy ratings on
Fifth Third (FITB), FleetBoston (FBF), J.P. Morgan Chase (JPM), SouthTrust
(SOTR), Synovus (SNV), Sovereign (SVRN), Wells Fargo (WFC), Bank of America
(BAC), Bank One (ONE), BB&T (BBT), PNC (PNC) and TCF Financial (TCB). (TAS)
10:17 (Dow Jones) Decline in existing home sales most likely a consequence
of plunging consumer confidence, says High Frequency Economics. If so, it's
"seriously bad news for retailers and manufacturers of housing-related items
- and the whole economy." (JMG)
10:09 (Dow Jones) Procter & Gamble (PG) and other major consumer-products
firms will have a chance to elaborate on their exposure to Turkey and other
issues Tuesday, when Merrill Lynch holds its annual "global branded consumer
products" in New York. (GC)
10:06 (Dow Jones) Existing home sales weaker than expected in January at
4.65M annual rate, a 6.6% decline from December. DJ/CNBC survey had called
for 5M rate. While lower mortgage rates should keep housing market in good
shape, given how strong it's been in recent years, they won't have the same
stimulative they've had in the past. (BB)
(END) DOW JONES NEWS 02-26-01
11:59 AM |
