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To: 2MAR$ who wrote (630)	6/22/2001 8:58:48 AM
From: 2MAR$	Read Replies (2) \| Respond to of 208838

MARKET TALK: Here's A Vote For Half-Point Cut 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 8:56 (Dow Jones) The reversal in jobless claims reported Thursday was too abrupt to be totally credible, says UBS Warburg's Maury Harris. Also, trade gap data provide some downside risk to his 2Q forecast of a 1% contraction in real GDP growth. Taken together, the reports don't alter his call for half-point cut Friday. (TG) 8:49 (Dow Jones) Junk bond mutual funds reported cash outflows of $633.2 million for the week ended June 20, marking two straight weeks of outflows, according to AMG Data Services. (JD) 8:41 (Dow Jones) Bear Stearns analyst Amy Butte was quite surprised with the 9% climb in Morgan Stanley Dean Witter's (MWD) stock Thursday after the firm beat Wall Street expectations. Butte says Morgan Stanley's 18.6% return-on-equity in the 2Q doesn't represent the trough for the firm. Butte's outlook is for an ROE of about 15% in the 3Q, a significant drop from the 30%-plus return investors have come to expect, she said. (CUB) 8:36 (Dow Jones) Given magnitude of Symantec (SYMC) shortfall, Lehman expects shares to trade to mid-$30s. Uncertainty over the 2H precludes firm from recommending the stock at these levels. Collateral damage can be expected in other names in the sector, though Lehman continues to recommend Internet Security (ISSX), Network Associates (NETA), and VeriSign (VRSN). (TG) 8:30 (Dow Jones) A profit warning from Merck (MRK) will put some pressure on stocks in the early going, at a time when the recent advances on major indexes is seen as somewhat suspect to begin with. Symantec (SYMC) is getting buried after lowering 1Q views sharply, while Micron Tech (MU) posted a wider-than-expected loss of 53c/share. Wall Street shrugged aside some somber earnings news Thursday, and very well could do the same as today's session progresses, but the current environment probably isn't conducive to much more than a trading bounce. Market players will also continue to make bets on next Wednesday's FOMC announcement, with a quarter-point cut the most popular wager. A fairly rare data-free Friday, but, in front of next week's FOMC gathering, there will be plenty to digest, including durable goods and new home sales. Stock futures soft, Tsys essentially unchanged. (TG) (END) DOW JONES NEWS 06-22-01 08:57 AM

To: 2MAR$ who wrote (630)	6/22/2001 9:04:55 AM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

BEFORE THE BELL: Merck Drops Bomb On Mkt, Manugistics Dn By Chinita L. Anderson Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Merck & Co. (MRK) dropped a bomb on Wall Street Friday morning, pushing pre-market activity into negative territory as the "confessional" season continues. The company's stock dropped $3.72 at $70.75, according to RediBook.com. The powerhouse drug marker revised its second-quarter and full year outlook because it doesn't expect Vioxx to reach "the top of its range" because of slower than expected penetration of the coxib class into the analgesics and arthritis market. The company also cited the adverse impact of foreign exchange on its overall business. The Whitehouse Station, N.J., company said it is comfortable with second quarter estimates of 77 cents to 79 cents a share and 2001 earnings of $3.12 to $3.18 a share. Manugistics Group Inc. (MANU) shares fell 14% to $31.46, according to RediBook.com, after it reported adjusted first-quarter earnings of 3 cents a share late Thursday. The Rockville, Md., company also said it expects second-quarter adjusted earnings to be flat, in line with first-quarter results. Analysts polled by Thomson Financial/First Call had forecast the company earning 4 cents a share for the second-quarter. Symantec Corp. (SYMC) stock plumped $15.31 to $46.00, according to RediBook.com. Late Thursday, the company lowered its first-quarter guidance to between 39 cents and 47 cents a share, citing weak spending in the consumer and small business segments worldwide and negative foreign currency effects. Twelve analysts surveyed by Thomson Financial/First Call had a consensus estimate of 65 cents a share for the first quarter ending June 30. On a more upbeat note, Research In Motion Ltd. (RIMM) shares rose $2.80 to $32.20, according to RediBook.com, after it reported first-quarter earnings of 5 cents a share, in line with analysts expectations. The Canadian company also said it's maintaining a "positive outlook" for the second half of the year. -By Chinita L. Anderson, Dow Jones Newswires; 201-938-4513; chinita.anderson@dowjones.com (END) DOW JONES NEWS 06-22-01 09:04 AM * end of story *