MARKET TALK: Stocks Will Get Another Shot At Ignoring Bad
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
4:44 (Dow Jones) The market is getting credit for brushing of warning from
Applied Micro (AMCC) earlier. Now, let's see it do it again Friday. SBC sees
1Q net well below views. (TG)
4:15 (Dow Jones) Perhaps this is the last thing this company needs: Fighting
a delisting because its shares trade under 50 cents, once-lofty TheGlobe.com
(TGLO) is warning that it sees "slower growth from 2001 than originally
expected." Company says it is "premature" to give specific guidance. (RJH)
4:03 (Dow Jones) Nice late-day bounce in stocks, helped in part by rebound
in IBM and tech. IBM said to have met with SG Cowen privately, and analysts
there are speaking well of Big Blue. Thursday's session may spark talk of
capitulation, given steep selloff earlier. DJIA bounced nicely off 10300
mark. Sentiment Friday could be interesting. DJIA down 37 to 10457, Nasdaq
up 32 to 2183, and S&P 500 gains 1 to 1241 (preliminary). (TG)
3:55 (Dow Jones) If airlines can't raise ticket prices much further, maybe
it's time to cut costs. In the latest of their efforts to slash distribution
costs, Northwest (NWAC) said it will eliminate its 5% commissions paid on
online bookings for US/Canada point-of-sale travel effective today. Merrill
Lynch's Linenberg calculates the move would have saved Northwest up to $20
million in commissions last year. The question now is whether other carriers
will match the move. If they do and online agents rescind the commissions
(which are capped at $10), the industry could save as much as $500M a year
by 2005, the analyst predicted. (SON)
3:39 (Dow Jones) Traders say upbeat presentation from IBM at Cowen
conference may be boosting stock, and apparently rest of sector. Big Blue up
$5.60, or 5%, at $105.50. (ROB)
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 you heard 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 the Nasdaq
to 1795, said Terry Danish, chief technical strategist at Investec Ernst &
Co. (KJT)
(END) DOW JONES NEWS 03-01-01
04:45 PM
*** end of story *** |
