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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: GrillSgt who wrote (32865)	3/9/2001 9:54:37 AM
From: Dalin	Respond to of 65232

Top o da mornin Porchies!! Zippity do dah, zippity day...wonderful feelin.........HAPPY FRIDAY!!! Don't watch dis kwazy market........ From Briefin: 09:45 ET Dow -100, Nasdaq -61, S&P -15.87: [BRIEFING.COM] A decidedly negative bias to start Friday trading with each of the major indices in the red. The February employment report this morning came in stronger than anticipated and this is likely to keep a lid on expectations for overly aggressive Fed easing. The chances for an inter-meeting rate cut are significantly reduced as are the chances for a rate cut greater than half a point. Early buy interest in the traditionally defensive sectors, tobacco, drugs, gold, paper, steel is indicative of the uncertainty in this market. Broad-based weakness in technology is being led by semiconductors which are lower following Intel's (INTC -2.68) earnings warning last night. Looks like 2100 has served as very near-term psychological support on the index but the more important technical level to watch is 2070 which is the year's low. 09:15 ET: [BRIEFING.COM] Still a negative bias in pre-market trading. S&P futures at 1277 are trading roughly 8 points under fair value while the Nasdaq pre-market indicator is lower by 42 points. The February employment report shows a clear upturn from the prior report. Initially, we're seeing sell pressure on this news as investors in favor of aggressive Fed easing are disappointed with the data. While this data is certainly consistent with a rate cut at the March 20 policy announcement, it doesn't lend itself to an inter-meeting rate cut, or a cut in excess of a half point as some investors were beginning to suggest. Also weighing on the market is an earnings warning out of Intel (INTC -2.75). The company now sees a sequential revenue decline of 25% and will be cutting 5,000 jobs. This will be yet another test of exactly how much negative earnings news has been priced in to the technology-heavy Nasdaq. 09:05 ET: [BRIEFING.COM] Investors will have quite a bit to mull over today. The February employment report came in stronger than anticipated. In the short term this is likely to lead to disappoinment among investors who wanted to see more aggressive Fed easing. The pre-market activity is consistent with this line of thought as futures have traded off on the report. In the broader perspective, this release may be encouraging as it suggests that macro-economic conditions may not be deteriorating to the extent some feared. The numbers largely fit with Greenspan's stance that recent economic data, while demonstrating signs of slowing, is consistent with growth. Intel's (INTC) warning last night that revenues will see a sequential drop of 25% counters the stronger than expected employment data and is likely to weigh on the technology market. 08:40 ET: [BRIEFING.COM] Results of the February employment report with expectations in parenthesis; nonfarm payrolls 135K (75K); unemployment report 4.2% (4.2%); hourly earnings 0.5% (0.3%); average workweek 34.2 (34.2). Initial response to the headlines was negative and futures continue to trade somewhat lower on the release. Prior to the report, S&P futures were -8.00 (roughly six points under fair value) and the long bond was higher 5 ticks at 5.290%. The S&P futures now trade -10.00, eight points under fair value, while the Nasdaq 100 futures -48.00 are 13 points under fair value. 06:42 ET: [BRIEFING.COM] S&P futures trading at 1268.60, 8.4 points below fair value, Nasdaq 100 futures trading at 1934.50, 5.5 points below fair value. The 30-year bond is up 8 ticks at 5.284%. Strength in fixed-income a function of Intel-related equity weakness. February employment the highlight of the day. 06:41 ET: FTSE -0.39%, DAX -0.33%: [BRIEFING.COM] Surprise, surprise, European stocks have also suffered from the Intel warning. Infineon and ARM Holdings hit the hardest. Phone stocks victim of some profit-taking following a nice run-up this week. Sector also hit by Goldman Sachs' decision to cut earnings forecasts for Alcatel in 2001 and 2002 Global economic weakness evident in Skandia declines, as the insurer said that plunging equity markets has reduced demand for investment products. 06:41 ET Nikkei -0.18%, Hang Seng -0.10%: [BRIEFING.COM] Asian equities traded with a fairly sluggish tone last night, as chipmakers were hit on the back of Intel's warning that Q1 sales will fall short of expectations (said revenues will fall 25% versus 15%). Intel said US slowdown has led to a deterioration in demand for personal computers and networking equipment. That said, it was not all bad, as while the Nikkei lost another 0.2%, market internals remained rather positive. Exporters once again outperforming on rencent yen weakness. Korea fell for the first time this week, not surprising when considering all of the chip stocks. Samsung Electronics, the world's largest, lost more than 4%, while Hyundai Electronics shed 3.8%. Singapore, Taiwan and Hong Kong were all lower, though we did come across reports of better bank and real estate buying in HK on more Fed easing hopes. :0) Ramblin