MARKET TALK: Not In Semis? Keep Holding Off
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
11:23 (Dow Jones) May semi book-to-bill worse than expected, and UBS Warburg
sees further order declines into the summer. If you're not invested in the
sector, hold off. "We think this projected order decline, coupled with a
reset of planned 2002 semi industry capex levels, will provide more
attractive entry points as optimistic investor expectations are reconciled
with deteriorating fundamentals," says analyst Byron Walker. (TG)
11:16 (Dow Jones) Sept. S&Ps are in the grips of a lackluster trade, floor
traders say. Volume is light and market is caught in a tight trading range,
bounded by initial support and resistance levels. Some pressure comes from
profit taking after strength over past few days. Cash market mixed,
generally soft - DJIA off 72 at 10643, Nasdaq adds 4 to 2063, and S&P 500
off 8 at 1229. (DMC)
11:02 (Dow Jones) Though some regional Bundesbank officials have warned
about the risk of recession in Germany, most economists aren't that
pessimistic - even after the Ifo index of western German business sentiment
Friday fell to 90.9 in May from 92.5 in April, well below an expected 92.1
level. (CLL)
10:55 (Dow Jones) As things stand, all the major indexes remain in
short-term downtrend, so a big drop in volume on a further rally would
probably indicate a short-lived, counter-trend move, says Hilliard Lyons
technician Dick Dickson. Here are the levels to watch: 10900 on DJIA, 1250
on S&P 500, and 2100 on Nasdaq. A close above these levels would be good
indication that rally is more than just short-term counter-trend move. (TG)
10:43 (Dow Jones) The cat's out of the bag. Keefe Bruyette analyst Thomas
Theurkauf downgraded shares of Dime Bancorp (DME) to market perform from
outperform after a Wall Street Journal story said Washington Mutual (WM) is
reportedly in talks to acquire the New York institution. "While this fit
appears to be logical, in our view the market has fully discounted the
potential for an acquisition," he said, noting he estimates WaMu would pay
$38 to $40 a share for Dime. Dime was recently off 0.67, or 1.8%, at 37.41
(TAS)
10:37 (Dow Jones) Network chip-maker Multilink's (MLTC) 24% first-day gain
Thursday marks an important shift away from safer non-tech names in the IPO
market, says David Menlow of IPOfinancial.com. "The security that was
available from these big-name IPOs...are no longer on the wish list for
investors," he says. "We may actually be at the dawn of a new beginning in
which smaller, more speculative deals may come back into rotation." (RJH)
10:24 (Dow Jones) Tech space getting some welcome news from analysts. JDS
(JSDU), Nortel (NT) upgraded at Wit, and ABN Amro has nice things to say
about Research In Motion (RIMM). Results in 1Q looked good, and in weak
macro environment, says RIMM's ability to make numbers is more a function of
its own product cycles than reliance on strength in broader IT market.
Long-term growth chances and lead in wireless enterprise market remain
"stellar." Reiterates buy and $90-$100 price target. Shares up 2.3% at
$30.07. (TG)
10:11 (Dow Jones) EUR/USD continues to defy expectations of a test lower on
weak German data and is now at intraday high of $0.8548. USD/JPY heads to
low side of Y124, reflecting the "instability" of that level, trader says.
(JEN)
10:05 (Dow Jones) Zions Bancorp (ZION) CFO Dale Gibbons was suspended from
his post at the Salt Lake City bank after being arrested on drug possession
and related charges, the company said. While the stock is under mild
pressure early Friday, UBS Warburg analyst Robert Patten says that will
likely be offset by buying tied to the stock's addition to the S&P 500 Index
after the market close. "This does not impact our view on the company and we
reiterate our buy rating," Patten said. Shares recently off 1.36, or 2.3%,
at 58.18. (TAS)
9:56 (Dow Jones) Sept. Nasdaq holding gains in early trade. Market is
hitting resistance at 1776, which could keep the market at bay. Above there,
resistance is seen at 1793 and then 1815. Support comes in at 1755 and 1736,
which could uncover buying interest. (DMC)
9:45 (Dow Jones) Nymex crude seen 30-40 cents a barrel higher early on very
oversold technicals. Comments Thursday that OPEC may leave output unchanged
triggered a correction overnight and follow through is expected Friday,
analyst says. Resistance for Aug. crude, up 43c to $26.99 in overnight
trade, is seen at $27.40. (MSX)
9:40 (Dow Jones) Not much doing on major averages in the early going. DJIA
off 3 at 10714, Nasdaq eases 10 to 2048, and S&P 500 drops 2 to 1234. Merck
will put more weakness on Dow when the stock opens, expected between 67-70
after close around 74. SOX off 1.1%, AMEX Internet index down 1.2%. Telecoms
trying to add to very recent gains. Honeywell, Intel, American Express best
acting on Dow. (TG)
9:25 (Dow Jones) Micron Tech (MU) still appears well positioned as a low-
cost provider, Merrill says, but firm has concerns about demand and pricing
environment. Reiterates intermediate-term neutral and long-term accumulate,
cuts FY02 revenue and EPS view to $3.55B and 59c from $3.98B and 66c,
respectively. (TG)
(END) DOW JONES NEWS 06-22-01
11:24 AM |
