June Nasdaq, S&Ps Suggest Higher Close...we'll see .
Edited by Ray Hennessey
Of DOW JONES NEWSWIRES
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11:51 (Dow Jones) June Nasdaq and S&Ps pare losses as Nasdaq looks to test
session high of 1668. Traders say there's a chance of seeing the markets end
on an up note. "So far we're actually up on the week and that give a lot of
incentive to give the markets a higher close," one trader says. (DMC)
11:47 (Dow Jones) The Nasdaq Composite has straddled the red and green for
much of the morning, and the DJIA, after being down about 80 points, is now
off roughly 21. Retailers Wal-Mart (WMT) and Home Depot (HD) are weighing on
the Dow, as is Coke (KO), offsetting a 2.1% rise from Microsoft (MSFT). S&P
is now slightly positive.
11:38 (Dow Jones) Citing continued advertising weakness, Lehman Brothers
analyst William Myers cut his 2001 radio industry revenue growth projection
to 3% from a range of 4% to 5%. Myers sees growth of 7% to 8% in 2002, with
Radio One Inc. (ROIA) and Cox Radio Inc. (CRX) making the greatest gains.
(DDO)
11:27 (Dow Jones) Workers of the world, get wired! In a sign of the
broadening reach of the Internet, home Web access for blue-collar workers
grew 52% over the past year - faster than it did for any other occupational
group - according to Nielsen/NetRatings. Overall Internet access grew only
25% in the same period. Blue-collar workers accounted for 9.5 million of the
people who went online last month. Homemakers were the second-fastest
growing group. (RS)
11:18 (Dow Jones) Robertson Stephens analyst Harry Curtis raised his 2001
earnings estimate for Pinnacle Entertainment (PNK) to 58 cents a share from
50 cents. The analyst, who kept his market perfromer rating on the casino
company, said earnings should benefit from the approval of dockside gaming
in Louisiana, which began April 1. (DDO)
11:10 (Dow Jones) Since when is 2% revenue growth worthy of applause? When
its reported by the venerable General Electric (GE) and when it's
accompanied by 15% first-quarter EPS growth. In this weak economic
environment, those results, reported earlier Thursday, are pretty good, say
analysts, and show the diversified strength of GE. With the results
generally in line with expectations, analysts say investors would be anxious
to hear what kind of outlook GE provides with the results. In the earnings
release, GE said what it's been saying for awhile: It expects another record
performance in 2001. Not much. But sweet words when other major companies
are running for cover. (CCW)
11:04 (Dow Jones) Variable annuities won't be a bright spot for life
insurers in the first half of 2001, according to Morgan Stanley. Morgan said
Thursday it expects variable annuity sales to decline 14% in the first
quarter, followed by a 10% decline in the second quarter and a recovery in
the second half of the year. The prediction is based on the securities
firm's new variable annuity sales model. (CUB)
10:56 (Dow Jones) Lehman Brothers analyst Joyce Minor said she has lower
confidence in Hilton Hotels Corp. (HLT) meeting earnings expectations,
compared with its peers, because of its spotty track record. In a research
note Thursday, she shaved her 2001 projection to 74 cents a share from 77
cents. (DDO)
10:49 (Dow Jones) UBS Warburg economist Maury Harris says weak spending and
confidence data "keep alive the risk of an inter-meeting Fed move." He puts
odds at just over 50%, and says next week would be likliest time for such
move. (BB)
10:43 (Dow Jones) Biotech earnings are off to a good start - they didn't
warn and they didn't miss. Biogen Inc. (BGEN) posted earnings of 46 cents a
share, in line with Street views, on revenues of $237 million, higher than
the $232 million-consensus estimate. Sales of multiple sclerosis treatment
Avonex fueled results as more patients and physicians are convinced by
clinical evidence supporting the use of this treatment over other multiple
sclerosis medicines. Executives anticipate Avonex to drive sales in the
second quarter and beyond. Shares rose 4.5%. (BMM)
10:36 (Dow Jones) Shares of computer data-storage company Network Appliance
Inc. (NTAP) fell 10% in trading Thursday after the company issued a profit
warning for its fiscal fourth quarter late Wednesday. The warning comes on
the heels of EMC Corp.'s (EMC) earnings preannouncement earlier Wednesday.
So much for storage being recession proof. (DLF)
10:30 (Dow Jones) Traders say day session weakness could be related to
last-minute tax selling. "Anyone who hasn't done so yet really only has
today left to do it," a floor trader says. But he adds after the big run up
this week, there's still a little nervousness out there. "There's still some
apprehension getting long at the higher levels," a trader says. (DMC)
10:27 (Dow Jones) Salomon Smith Barney analyst Thomas O'Donnell says Fannie
Mae (FNM) and Freddie Mac (FRE) shares "will go through periods of
volatility this year" and that investors should "either ignore the near-term
volatility or use it to add to, or initiate, positions." (JC)
10:20 (Dow Jones) Medical products giant Abbott Labs (ABT) reported first
quarter profits in line with Wall Street estimates, even though sales fell a
bit short of expectations. Operating profits totaled $734.9 million, or 47
cents a share compared to $692.9 million, or 44 cents a share last year.
Revenues, however, fell about $50 to $70 million, short at $3.6 billion.
That miss, however, did not worry several analysts, who attributed it to a
bigger-than-expected hit from foreign currency issues. (JJO)
10:11 (Dow Jones) The 87.8 mid-April Michigan sentiment reading is the
lowest since 1993, one economist notes, adding that weakness spread to
current conditions, which had been holding up better than expectations. (BB)
10:07 (Dow Jones) Wal-Mart's (WMT) anouncement at the bottom of its March
sales report that its 1Q earnings "may come in below our original estimate
of $0.32 but will be up slightly from the prior year's 1Q of $0.30 a share"
is a bad sign for the retail sector, says Emme Kozloff, an analyst at
Sanford C. Bernstein & Co. Wal-Mart is the most powerful merchandise buyer
in the country, and "if Wal-Mart is experiencing margin pressure, the rest
of the sector has got to be experiencing the same pain." (JMC)
10:05 (Dow Jones) With the air out of the Internet bubble, Geocapital
Partners has decided to take a breather. The Fort Lee, N.J., venture-capital
firm pulled the plug on its latest fund-raising effort in December,
returning $200 million in committed capital to investors, because of the
tough climate for investing in start-ups. A new round of fundraising isn't
likely until the fourth quarter "at the earliest," says Steve Clearman,
managing general partner and co-founder of Geocapital. (JAW)
10:00 (Dow Jones) The good news is that Research In Motion (RIMM) "blew away
our best-case revenue estimates" in its fiscal fourth-quarter, Merrill Lynch
says. The bad news is that the company is saying the next two quarters will
see revenue at the low end of expectations. Research In Motion is likely to
stay in a $20 to $30 trading range until the economy improves, the firm
says. (RJH)
(END) DOW JONES NEWS 04-12-01
11:51 AM
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