DJN: DJ MARKET TALK: Look Before Jumping Back Into DoubleClick
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
12:53 (Dow Jones) Lehman is taking a wait-and-see attitude on DoubleClick
(DCLK) and other Internet ad stocks. "While anecdotal evidence suggests the
market has bottomed, it is likely premature to call for a strong rebound in
online advertising. We look for management to provide some much needed
visibility." Lehman expects DoubleClick to meet or beat the firm's 2Q
estimates of an 8 cents a share loss and $101 million in revenue. Lehman
also doesn't see DoubleClick reducing year guidance because views are
already low enough. However, "we are waiting for a re-acceleration of growth
before becoming more positive on the shares." DCLK rising 21 cents to
$13.68. (GS)
12:42 (Dow Jones) Bear Stearns likes Ford bonds over GM bonds. Ford Explorer
rollover issues aside, the company has a stronger balance sheet, higher
profit-margins and a better cost structure. Ten-year Ford paper trades at a
bid of 178 bps over Treasurys while GM trades at 165 bps. Bear says the
sector is at fair value. (CSE)
12:29 (Dow Jones) The euro's fall Thursday is being tied as much to long
term factors as to day-to-day developments. "The decision by the E.U. to
reject the Honeywell/GE merger is a negative for the euro," said one
analyst. EUR/USD now at $0.8366; EUR/JPY is at Y105.20; USD/JPY is firm at
Y125.71. (JRH)
12:25 (Dow Jones) Shares of Callaway Golf (ELY) were up nearly 8% as
speculators bid up shares, believing the company's board would be more open
to acquisition on sad word that Ely Callaway, the company's founder, has
died. Shares now are off their highs at $17, up 75 cents on the day. (EGS)
12:12 (Dow Jones) With its drop today, the Dow Jones Industrial Average has
lost its holdout status. Coming into the session, the Dow was the only major
stock index not down over the past 12 months. The Dow began the day ahead
0.35% over the past year but is now showing a 0.50% decline. Of course,
that's a pittance compared with technology-laden barometers. For instance,
the Nasdaq 100 Index of largest nonfinancial stocks is off 51% over the past
year. (KJT)
12:03 (Dow Jones) The single currency earlier slipped to yet another new low
for the year at $0.8371. Traders now look long term and are linking the
euro's problems (in addition to the usual suspects) to concerns about the
ability of U.S. companies to carry out merger business in the euro zone
following failure of the GE/Honeywell deal. (JRH)
11:53 (Dow Jones) Verizon Wireless' reported net subscriber additions of
807,000 for the second quarter, barely more than net adds of 800,000 a year
ago. The comparison consolidates the wireless operations of Vodafone, Bell
Atlantic and GTE. For the first quarter of this year, Verizon Wireless
posted net subscriber additions of 518,000. Verizon Wireless is a joint
venture between Verizon Communications (VZ) and Vodafone PLC (VOD). (CBN)
11:43 (Dow Jones) A N.Y. judge awarded PaineWebber $2.9 million, plus
$416,000 in interest, after ruling that NetRatings Inc. (NTRT) failed to
honor an agreement with the financial advisor. NetRatings plans to appeal
Tuesday's decision, and warned it expects to incur "substantial" additional
legal fees and expenses in connection with the appeal, which may also result
in the diversion of internal resources. (TAG)
11:34 (Dow Jones) Credit spreads will narrow further as fundamental outlook
for U.S. economy is improving, says JP Morgan. Don't be spooked by poor 2Q
earnings, as these are backward looking. That said, JP Morgan cautions many
already have positioned themselves for the rebound by getting long
corporates. (CSE)
11:24 (Dow Jones) Knight Trading Group (NITE)'s profit warning on a slow
trading day Thursday was largely a non-event. Analysts have recently been
taking down numbers anyway and as of Tuesday had expected the firm to earn
10 cents a diluted share, according to Thomson Financial/First Call. Now the
market-maker, which reduced its domestic workforce by 6% last month, is
predicting earnings of 7 cents to 10 cents, excluding a non-recurring charge
for severance and other one-time asset writedowns. Shares traded recently at
$10.35, up 14 cents, or 1.4%. (CWM)
11:14 (Dow Jones) Arnhold's John Roque advising investors stay away from
biotech. Sees the AMEX Biotech index working its way back to 400 (currently
at 592). Believes Amgen (AMGN), which is below its downward-sloping 200-day
moving average and below its 50-day MA, too. Looks like it will go to $50
before long, he says - recently at $59.49. (TG)
11:03 (Dow Jones) Salomon analyst Thomas O'Donnell has upped the ante for
the mortgage market. "With refinancings waning but still substantial and a
purchase market that still remains strong," he's increasing Q2 EPS estimates
for Fannie Mae (FNM) to $1.30 from $1.26 and for Freddie (FRE) to $1.03 from
$1.01, both above consensus. (TL)
10:46 (Dow Jones) Non-manufacturing NAPM rebound above 50 points might be an
argument for Fed coming close to end of monetary easing cycle and the bond
market appears to be taking it that way, says Carol Stone, deputy chief
economist at Nomura Securities in NY. However, Challenger job layoffs were
at very high levels. Economy is not out of the woods yet, especially
considering non-manufacturing NAPM index does not have long track record,
Stone says. (JNP)
10:40 (Dow Jones) Nothing seems able to help the euro and the single
currency has just slipped to a new low for the year at $0.8384. EUR/JPY is
at Y105.35; USD/JPY is firm at Y125.66. (JRH)
10:32 (Dow Jones) Stocks come back after nice reading on non-manufacturing
NAPM. Just another in a series of increasingly encouraging pieces of
evidence that things may be brightening, at least a little. Layoff picture
disheartening, though. DJIA off 8 at 10562, Nasdaq eases 15 to 2125, and S&P
500 falls 2 to 1231. (TG)
10:27 (Dow Jones) Lawrence Bossidy is back at Honeywell International (HON),
but for how long? During a conference call Tuesday, Bossidy, who takes over
for the retiring (yeah, right) Michael Bonsignore, said he has a one-year
contract to turn the faltering aerospace giant around. He said he will then
turn over the reins to a successor - but possibly, Bossidy, who retired as
Honeywell chairman last April following the merger with AlliedSignal, is
prettying up the company for a merger partner. Investors seem to like the
controversial management shakeup, bidding up the stock 3%. UBS Warburg cut
its rating on the stock to buy from strong buy and lowered price target to
$45. (CCW)
10:23 (Dow Jones) Wells Fargo chief economist Sung Won Sohn says that the
worst in the economy is behind us, due to rate cuts, rebounding confidence,
stable stock market, tax cuts, falling energy prices, and resilient consumer
spending. But it won't be a quick process, since the tech slump will
continue, consumers and businesses remain highly leveraged, and the rest of
the world is sluggish. Lagging indicators - particularly employment and
corporate profits - will get a bit worse, keeping growth at sub-potential
levels for "the foreseeable future." (SV)
(END) DOW JONES NEWS 07-05-01 |
