MARKET TALK: 100% Chance Angell Didn't Have Inside Info...LOL!
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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3:23 (Dow Jones) Wayne Angell, the chief economist at Bear Stears and former
Fed governor who stoked hopes for an interest rate cut this week, is not
contrite now that one hasn't materialized. Angell tells CNBC he had "no
inside information," that the Fed might move. It's just that consumer
confidence and other economic indicators have fallen to near recession
levels that could have prompted an intra-meeting reduction, Angell says.
(KJT)
3:19 (Dow Jones) Shares of Avanex (AVNX) down nearly 20% after the company
slashes fiscal 3Q earnings expectations. But the optical component supplier
may end up among technology stocks that surprise to the upside down the
line, said Morgan Stanley analyst David Jackson. "We believe the company is
being conservative and that its fundamentals look good." (KJT)
3:10 (Dow Jones) Stocks at lows of session. No buying in tech, next to none
in blue-chips, and momentum continues to draq equities lower. Earthquake in
Seattle probably didn't help, although there are no reports of injuries or
extensive damage. We're still a ways away, but drop below 10300 on DJIA
points to move below 10000. Next stop on Nasdaq is 2000. March S&Ps at limit
down. DJIA off 195 at 10440, Nasdaq falls 72 to 2136, and S&P 500 loses 26
to 1231. (TG)
3:01 (Dow Jones) Up 200 points Monday, down 180 Wednesday - which way will
the Dow Jones Industrial Average ultimately trend. Lower, suggests Terry
Danish, chief technical analyst at Investec Ernst & Co. Only four of the
Dow's components - Alcoa (AA), Minnesota Mining and Manufacturing (MMM),
Philip Morris (MO), and United Technologies (UTX) - are charting positively,
Danish said. Nine Dow stocks are in negative patterns, while the rest are
neutral. (KJT)
2:54 (Dow Jones) Amazon.com (AMZN) shares are worth about $9 each, or 13%
below already depressed levels, says SG Cowen analyst Scott Reamer. He says
that the company's core business of selling books, music and video has
weakened. Meanwhile, it's boosting its dependence on electronics and toys
sales, but the overall retail landscape is blurry. If Amazon misses 1Q and
2Q revenue views, its target of breakeven in 4Q is questionable. The
uncertainty could trigger a liquidity crunch as a result of dwindling
confidence among creditors and suppliers. Due to the concerns, Amazon should
be valued like a traditional retailer, at one times projected annual
revenue, or $9, Reamer says. (PDL)
2:44 (Dow Jones) Here's part of the reason why JDS Uniphase's (JDSU) layoffs
within its passive manufacturing business went over so poorly, courtesy of
Merrill, which says the high-margin passive business may be seeing some
changes to its business model: The business represents about 50%-60% of
sales, and delivered operating margins of 43% last quarter, vs. 28% in the
actives business. JDS off $1 at $26.75. (TG)
2:37 (Dow Jones) Greenspan's testimony today doesn't support an "emergency"
rate cut, says economist David Orr of First Union, who sees Fed waiting
until March 20 to act, "unless something now unforeseen happens before
then." (JC)
2:26 (Dow Jones) Shares of merger partners MCN Energy (MCN) and DTE Energy
(DTE) were halted for news Wednesday. DTE Energy said a press release would
be issued shortly. MCN Energy couldn't be reached for comment. At least one
trader thinks the release may be an update on the progress of the company's
negotiations with regulatory agencies. Volatile energy prices have changed
the economics of the deal since it was announced, raising questions that the
deal might not be completed before its April 15 walkaway date. (CCC)
2:23 (Dow Jones) Nice vote of confidence for Philip Morris (MO) - from
Philip Morris. Companies with beaten-down share price often say they will
buy back stock, citing the underpriced stock (sometimes those buybacks are
actually carried out.) But Philip Morris completed its $8 billion buyback,
and announced another one of $10 billion earlier Wednesday. What's notable
is that Big Mo is by far the best-performing stock among DJIA components
over the past six months, up more than 60%. (TG)
2:02 (Dow Jones) Pall Corp. (PLL) reported on-target 2Q earnings, but Banc
of America analyst Mark Gulley notes that the filtration company continues
to suffer from an inability to control expenses. So Gulley is trimming a
nickel each from his earnings estimates for fiscal 2001 and 2002. The
analyst expects a "lively" conference call Thursday morning, when Pall
management will likely have to field a lot of questions regarding SG&A, R&D,
and margins at its medical business. (CCW)
1:55 (Dow Jones) Stocks take it on the chin again, largely on erasure of
hope that rates are going lower before March 20. But take a step back and
consider a few things: the NY Purchasing Managers index increased for the
first time in three months, the Chicago PMI rose as well, home sales, while
down, are down from unsustainably high levels and are are still strong, and
spending in general hasn't decreased to worrisome levels (so far). While
your average day trader may want lower rates just for the sake of lower
rates, that isn't the game - we're just going to have to worry about
inflation down the road. Maybe the worst is behind us, or close - Greenspan
still deserves benefit of the doubt. (Of course, this whole argument could
go out the window tomorrow, when NAPM and personal spending are unveiled,
but heck, it's time for some good news.) (TG)
1:39 (Dow Jones) Insmed Inc. (INSM) climbed after the company reported that
two phase II trials of its lead compound, the oral-insulin sensitizer INS-1,
showed positive results in patients suffering from polycystc ovarian
syndrome and dyslipidemia. CEO Geoffrey Allan says the company expects to
bring the product to market by 2004 or 2005, and will not show a profit
before then. Insmed currently has $80 million in cash and will not be
looking for additional funding through licensing partnerships. Shares up
18%. (SPJ)
(END) DOW JONES NEWS 02-28-01
03:23 PM
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