Big Day For Stocks; Can MOT Keep Party Going?
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
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4:04 (Dow Jones) Heck of a day for stocks. Gains were great, and perhaps
most satisfying was feeling that much of the money being directed toward
stocks was fresh, not simply a result of short covering. Big volume, too.
Motorola can keep the party going later tonight, or end it just when it was
getting fun. One more time, though: As nice as these gains look, it's not
the first time we've seen sizable up moves within this bear market. No one
can tell us this is bottom - only time will tell that tale. DJIA jumps 252
to 10097, Nasdaq climbs 106 to 1852, and S&P 500 adds 30 1168 (preliminary).
(TG)
3:46 (Dow Jones) Lehman technician Jeff deGraaf notes there's more puts than
calls in Amazon (AMZN), but suggests sticking with downtrend, with short
opportunity at $14. Stock is overbought. Shares up 9% at $12.13. (TG)
3:28 (Dow Jones) Stocks continue to look strong, with Nasdaq 100 up nearly
9%. Tuesday will mark second session in a row in which the DJIA and Nasdaq
Composite both post gains, an accomplishment not seen since March 6 and 7.
DJIA up 280 at 10125, Nasdaq surges 117 to 1863. (TG)
3:20 (Dow Jones) Stronger USD against foreign currencies seen driving gold
prices, but price volatility is low, says trader in London. Physical demand
solid, but trader wonders how long before more selling comes in. Given
holiday ahead, doesn't expect breach of $255-$260 range in spot gold. Spot
recently around $257.10/oz. (DGB)
3:08 (Dow Jones) Motorola (MOT) due out after 5:00 p.m. ET. Estimate is for
a 1Q loss of 7c a share, compared with last year's profit of 20c. The
company's outlook is obviously key, but given recent interest in MOT's
financial health, its cash position and debt levels will be important. Also
reporting tonight is ETrade (ET), which is expected to post break-even
results. (TG)
2:58 (Dow Jones) Bullish trades began surfacing in the options market as
traders report call buying beyond the typical covering of short positions.
Investors remain cautious and used options to hedge positions, but traders
say they are seeing some new money moving in off the sidelines. Investors
who had been stung betting on individual stocks but who think some sectors
are poised to recover also turned to index options, which also traded
briskly. (KXT)
2:52 (Dow Jones) RSA Security (RSAS) rose as much as 18% after the
Internet-security systems company reported 1Q earnings in-line with analyst
estimates. The news provided a signal that leading security firms are
keeping their heads above water, despite a slowing economy that has caused
endless waves of earnings warnings from technology companies. (RR)
2:43 (Dow Jones) With DJIA over 10000, look for move to 10200-10300, an area
where it will find tons of resistance, says Investor's Edge technical
analyst Gary Kaltbaum. His short list of sectors acting well: Energy (Coal),
Railroads, S&Ls, Tobacco, and Electric Utilities. With Nasdaq down 41% since
Feb. 1, bounces have to happen somewhere. He's not convinced yet that this
is bottom. (TG)
2:30 (Dow Jones) Citing continued weakness in fundamental lodging industry
trends, Deutsche Banc Alex. Brown lowered 2000 and 2001 earnings estimates
on Boca Resorts (RST), Crestline Capital (CLJ), Felcor Lodging Trust (FCH),
Hilton Hotels (HLT), Host Marriott (HMT), Marriott International (MAR),
Meristar Hospitality (MHX), Meristar Hotels & Resorts (MMH), Prime
Hospitality (PDQ), Starwood Hotels & Resorts Worldwide (HOT), and Wyndham
International (WYN). (DDO)
2:19 (Dow Jones) Raymond James analyst Damon Brundage cut his price target
on Harrah's Entertainment (HET) to $35 from $38 based on valuation. However,
the analyst expects the casino hotel company to report strong first quarter
results and its New Orleans casino to begin adding earnings now that its
state tax bill has been cut to $50 million from $100 million. (DDO)
2:02 (Dow Jones) All eyes on the Nasdaq 100 Trust (QQQ) as tech stocks
rally. Since late January, this tracking stock has rarely broken above its
10-day moving average - until today. Investors are watching to see if the
QQQs will test or break above the 20-day moving average, which is at $40,
notes Schaeffer's Investment Research. If there is a clear break above $40,
where there is huge call option open interest of more than 150,000
contracts, traders who hold short positions could stage a significant
delta-hedging rally, which means more upside for the index. The Qs most
recently at $39.90, up $2.85 or 7.7%. (KXT)
1:49 (Dow Jones) Anchor Gaming's (SLOT) new Pala Casino in San Diego is
going like gangbusters since opening April 3, according to Bear Stearns
analyst Jason Ader. The property could contribute 40 cents a share to as
much as 80 cents in fiscal 2002. The mix of Pala Casino and meaningful
growth from Anchor's gaming machine business should contribute to Anchor's
stock rising 15% to 20% from current levels in the next six to 12 months,
Ader says. (DDO)
1:37 (Dow Jones) Bear Stearns is moving to market weight from underweight on
telco debt, reflecting the largely played out rating downgrade cycle and
expectations of a manageable supply of new issues during the remainder of
this year, say analysts at the bank. (RGB)
1:34 (Dow Jones) Technology stocks are well ahead Tuesday, but the CBOE's
Nasdaq Volatility Index has barely eased, most recently down 0.02 to 75.16.
This suggests that even as investors bought into tech stocks, they remain
anxious and nervous about the sector. In the broader market, the CBOE market
volatility index, or VIX, eased more, falling 3.36 to 33.38. Nasdaq Comp up
6%, Nasdaq 100 jumps 8%. (KXT)
1:24 (Dow Jones) Pitney Bowes (PBI) agreed to pay a "reasonable amount" for
Danka Business Systems PLC's (DANKY) Danka Service International outsourcing
unit, says Credit Suisse First Boston analyst Gibboney Huske. Cost synergies
should result from the pending $290 million cash acquisition, she adds.
Huske says Pitney should see market share gains in the outsourcing arena at
the expense of weaker competitors such as Xerox (XRX). (DDO)
1:13 (Dow Jones) Railway operators might not be the sexiest companies, but
Deutsche Banc analyst Lloyd sees more upside to the sector. The S&P Rail
Index has slid 22% from its high on July 31, 1997, while S&P 500 has risen
18% since then, he noted. With merger-related operational problems largely
resolved and many operators cutting costs, the sector should rally further
on top of a 13% year-to-date rise, he predicted. Separately, appearing on
CNBC, Union Pacific (UNP) chairman said he is comfortable with 1Q Wall
Street estimates. (SON)
1:00 (Dow Jones) ADRs of China Mobile (CHL) are up 9.3% to $22.70 as
investors toss aside global concerns about telecommunication shares and run
with the rally in New York. Market movers had been holding back from the
stock even though China Mobile, which has the world's second-largest number
of wireless subscribers and is the most widely-held emerging Asian stock,
reported Monday that its net profit rose nearly four-fold in 2000. (ADG)
12:51 (Dow Jones) Another rally that's left Procter & Gamble (PG) behind.
Shares of the consumer-products giant are among the few in the red in the
DJIA, and the stock has fallen behind on other good days, too. Factors
weighing on the stock are myriad, with critics having cited everything from
the company's habitual accounting charges and restructuring pain to high
operating costs. PG off 3% to about 58, and near(ish) year low of 52.25.
Year high, back in December, was just under 80. (GC)
12:43 (Dow Jones) Sawtek's (SAWS) fiscal 2Q results released late Monday and
lower 3Q projections led JP Morgan H&Q wireless equipment analyst Ed Snyder
to trim his estimates Tuesday on the wireless phone component maker - but he
kept the stock rated Market Performer. "While orders firmed somewhat in late
March, we believe the market will remain flat and visibility poor through
the June quarter," Snyder wrote in a morning note. However, he added, the
company should not face liquidity difficulties even in a bear market and,
"its continued investments in R&D will payoff in diversified revenues and
high growth once fundamentals improve." (JDB)
(END) DOW JONES NEWS 04-10-01
04:05 PM
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