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To: 2MAR$ who wrote (286)	6/21/2001 9:02:24 AM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

MARKET TALK: IBM Faces Some Challenges, Pru Says 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 9:00 (Dow Jones) Prudential not sounding too optimistic on IBM. Says business challenges will increase as year moves on, and company's ability to weather storm based on its geographic diversity is getting more limited as weakness here finds its way into Europe and Asia. Sees limited upside to shares, and without signs of upturn in IT spending before year-end, anticipates IBM revenue-growth outlook to weaken. Keeps hold, $111 target. Shares closed Wednesday at $113.09. (TG) 8:54 (Dow Jones) EUR/USD slides following ECB's no move on rates. Press conference not providing any support either despite Duisenberg citing "transitory" upward price factors affecting EU inflation. Admits weak regional growth, urges need to keep wage pressures down. Pair at 0.8532 vs 0.8565 just prior to rate decision. (JMG) 8:51 (Dow Jones) It seems the IPOs that are priced most aggressively are the biggest failures lately, but now the market gets a test from a deal that priced a bit more modestly. Multilink (MLTC), which makes chips used in optical networks, priced 8 million shares at $9, the mid-range of price talk. Of course, there will be some investors who think any new company in the optical networking space right now is too expensive at any price. (RJH) 8:48 (Dow Jones) While the jobless claims decline was encouraging, the other data in this report raise warnings. The total number of beneficiaries in the week ended June 9 was 2,999,000, just below a psychological threshold, and the covered jobless rate rose to 2.4%, the highest level since the week ended March 23, 1996. (JM) 8:45 (Dow Jones) Potential is there for upside surprise from Bed Bath & Beyond (BBBY) when company reports after the bell. Company has beaten 1Q views in four of past five years. Stock remains one of favorite picks given history of company posting strong sales and EPS gains irrespective of a difficult macro economic environment. Ups price target to $36. (TG) 8:39 (Dow Jones) The trade deficit narrowed a bit to $32.17 billion in April from $33.08 billion in March. This was the first set of trade data for 2Q and since it was larger than the 1Q average of $31.06, suggests that the trade sector will act as a drag on GDP growth this quarter. (JM) 8:36 (Dow Jones) The current account narrowed in 1Q to -$109.6 billion from -$116.3 billion in 4Q of 2000. The current account is the broadest measure of the U.S. foreign trade flows and shows that the sector provided a modest boost to growth in 1Q. (JM) 8:35 (Dow Jones) Jobless claims fell by 34,000 to 400,000 in the week ended June 16. The consensus had looked for a 2,000 increase to 430,000. The four-week moving average fell to 422,500 from 425,250. This number has been above 400K for the past five weeks, which hasn't happened since 1992. (JM) 8:30 (Dow Jones) If it's Thursday, it must be time for another look at weekly jobless claims. When things are sailing along smoothly, these numbers typically don't have much impact on the market, but over the past several months this reading has taken on new meaning - consumers can't keep spending (and, depending on who you talk to, keep us out of a recession) if they don't have a job. Leading up to claims report, stocks looking flat. Sanmina (SANM) will miss big, Morgan Stanley (MWD) tops views, while Cisco (CSCO) and Kodak (EK) back estimates. As expected, no rate cut from ECB. Philly Fed survey later. Tsys higher.(TG) (END) DOW JONES NEWS 06-21-01 09:01 AM * end of story *