Market tidbits....prior to the rallleee
DJ MARKET TALK: Nasdaq Turns Up; IBM Has DJIA Looking Better
01 Mar 15:32
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
3:32 (Dow Jones) Nasdaq turns positive, DJIA slashes losses. Big turnaround
in tech, with IBM and semis among impressive reversals. DJIA off 51 at 10443,
Nasdaq higher by 1 at 2153. IBM up 5% at $104.50, down to $97.50 intraday. (TG)
3:27 (Dow Jones) Prudential says recent devaluations in biotech have created
some decent buying opportunities. Reiterates strong buy on Dendreon (DNDN),
Ilex Oncology (ILXO), and NeoPharm Inc. (NEOL). (TG)
3:10 (Dow Jones) Stocks staging comeback. DJIA, which crept as low as 10302,
has regrouped, down 100 at 10392. In recent months, the 10300 area has provided
solid support for blue-chips, and it's encouraging the Dow was able to hold
there. Nasdaq has also pared its losses by more than half, down 38 at 2111.
(TG)
2:53 (Dow Jones) No change in UBS' outlook for Fed action: half-point ease on
March 20, and another 50 basis points in 2Q. (TG)
2:45 (Dow Jones) More signs that economy continued to firm in February. North
American-made auto sales at roughly 14.5M annual rate, about 1M more than
expected. "A good, solid month," says UBS Warburg economist Jim O'Sullivan.
(BB)
2:38 (Dow Jones) In a twist on the Rolling Stones classic, investors said,
"Hello, Ruby Tuesday," bidding shares of RI up as much as 15% after it upped
its projected same-store sales growth for its fiscal 3Q to about 6%, or triple
the growth it projected Jan. 8. when it released 2Q results. (MM)
2:28 (Dow Jones) One trader believes he knows why the interest rate cut
prediction by Bear Stearns chief economist Wayne Angell had such a profound
effect on stocks. "In a sea of bad news, he raised an island of possibility,"
said Steve Massocca, head trader and president of Pacific Growth Equities.
"When was the last time youheard anything encouraging about the market?" (KJT)
2:23 (Dow Jones) The lone IPO Thursday, Canadian anemia-treatment company
Hemosol (HMSL), has been pretty much dead on arrival in its U.S. debut. Shares
recently traded at $8.75, a hair below their $8.78 offer price. (RJH)
2:14 (Dow Jones) Some analysts say the joint decision by Northwest Airlines
(NWAC) and KLM Royal Dutch Airlines (KLM) to stop paying commissions to online
travel agencies could have a negative impact on companies like Expedia Inc.
(EXPE) and Travelocity.com Inc. (TVLY). But name-your-own-price site
Priceline.com (PCLN) is making it clear that such moves by airlines will not
affect its business one bit; with its business model, Priceline doesn't receive
commissions on airline ticket sales. (RS)
2:09 (Dow Jones) March Nasdaq hits limit down at 2:04 p.m. ET, falling to
1848. A 10-minute trading curb is in effect. If the market remains at limit
down, a 2-minute trading halt will occur. (DMC)
2:02 (Dow Jones) Nymex crude rally comes apart and prices drift into negative
territory as early attempt at recovery from Wednesday's sell-off falters. No
news cited. Heavy selling in gasoline futures, largely on a weak Gulf Coast
cash market, exerts further downward pressure, traders say. April crude down 14
cents at 27.25. (MXF)
1:48 (Dow Jones) The U.S. "will face progressively harder choices and more
difficult debt management tradeoffs" as it confronts the new fiscal reality of
budget surpluses and shrinking debt, the General Accounting Office said. The
Congressional watchdog agency said U.S. policymakers will have to address the
questions "sooner rather than later" of whether and how to maintain a domestic
market for Treasury debt and whether and how to hold excess cash. (MSD)
1:41 (Dow Jones) Technical analysts are keeping a close eye on the Nasdaq,
off 73 points to 2079. Support is next at 2050 and 2002. A break through this
zone would nullify a 10-year positive trend line and subject theNasdaq to
1795, said Terry Danish, chief technical strategist at Investec Ernst & Co.
(KJT)
1:24 (Dow Jones) The Dow Jones Industrial Average may be positioning to make
a run at its 52-week low of 9654. At 10315, down 180 points, the index is
closing in on key support at 10292. The Dow has successfully bounced back from
this point three times in the last three months. But what if the index falls
through? "The probability is for downward acceleration," said Terry Danish,
chief technical strategist at Investec Ernst & Co. Dow would next hit support
at 10141, then 9908, with selling potentially continuing as it heads to 9654.
(KJT)
1:16 (Dow Jones) Jeff deGraaf's checklist for capitulation: extremely heavy
volume, accelerating downward momentum, spikes in option volatility numbers,
and heavy put activity (put/call ratio over 1.00 intraday.) "After such events,
the market usually will test the lows, and these indicators will fail to
expand," says the Lehman technician. "That's when the risk of buying is at its
nadir." (TG)
1:02 (Dow Jones) Given current conditions, no one should be surprised by
Corning (GLW) layoffs in photonics business. Merrill says risk reward scenario
for company has improved in recent weeks, especially for investors with 12- to
18-month time frames. Price target over that period is $40. Shares faring well
Thursday in tough market, up 5% at $28.36. (TG)
12:50 (Dow Jones) Mandalay Resort Group's (MBG) current fiscal 2002 could
prove to be a difficult "transition year" for the casino hotel company, Bear
Stearns analyst Jason Ader said. Mandalay faces increased competition in
Laughlin and Reno, Nev. and Tunica, Miss.; decelerating growth rates on the Las
Vegas strip; increasing utility costs and a flat economy, Ader says. (DDO)
12:39 (Dow Jones) Cerner Corp.'s (CERN) stock fell 12% in morning trading
after Morgan Stanley Dean Witter analyst Marie Rossi made negative comments
about the stock. Internet rumor sites were attributing the decline to online
whispers of accounting irregularities, but analysts dismissed that talk.
Company hasn't responded yet. (RR)
12:33 (Dow Jones) Here's an interesting turn of events - the price/earnings
ratios of Old Economy stocks are outstripping those of techs. At 92,
International Paper (IP) carries the biggest P/E on the Dow. That's followed by
Coca Cola (KO) with a 60 and Walt Disney (DIS) with 54. Among the Dow's tech
components, Intel (INTC) carries a P/E of 18, Hewlett-Packard (HWP) is at 19
and SBC Communications (SBC) is 20. (KJT)
12:26 (Dow Jones) Target (TGT) trading off 4% Thursday, despite expectations
the retailer will put up better than expected numbers when it reports fourth
quarter Tuesday. But J.P. Morgan, which has higher forecasts than Street
concensus, says stock is trading at 15-year high relative to the market, so any
strength would be a good time to lighten up. (ROB)
12:20 (Dow Jones) Stocks sliding lower and near their lows for the day. DJIA
down 161 at 10333. Nasdaq losing 47 at 2104. The only DJIA components in the
green are Philip Morris (MO), Exxon Mobil (XOM), Johnson & Johnson (JNJ) and
Caterpillar (CAT). Among the biggest losers on the Dow are Boeing, down 5.6%;
AT&T, off 4.6%; and Wal-Mart, losing 3.6%. (GS)
(END) DOW JONES NEWS 03-01-01
03:32 PM |
