DJ MARKET TALK: Cheer Up, Team - We ARE Being Investigated
2001-08-08 11:01 (New York)
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
11:00 (Dow Jones) In one of the oddest bits of corporate-speak, PolyMedica
(PLMD) says in a release "it comes as a kind of relief to discover the
unsubstantiated rumors of criminal investigations that we have been battling
for so long have finally been resolved." The company is off the hook, right?
Actually, the opposite. In the very next sentence, the company reiterates what
it said yesterday: they are under criminal investigation by the Feds in
Florida. So, why crow? PolyMedica says the criminal probe was "only recently
initiated" not started nine months ago, as others suggested. Comforting indeed.
(RJH)
10:50 (Dow Jones) Shares of TMP Worldwide (TMPW) are up about 6% after the
company, which operates the Monster.com job-hunting Web site, reported 2Q
results that were better than Wall Street estimates. Revenue was $384M,
compared with a consensus for $382M, while pro forma earnings of 32c a share
were ahead of the 30c consensus. In June, the company announced an agreement to
acquire rival HotJobs.com (HOTJ), which it expects to complete by the end of
the year. (RS)
10:45 (Dow Jones) Treasurys are enjoying a quiet morning with most buying
toward the short-end of the curve on stock-related plays. The 10-year sale is
seen going well. The two-year is up 2/32 to yield 3.84%, and is the biggest
mover of the day. The 2s/30s curve is 2 BP steeper. (MSD)
10:37 (Dow Jones) Everyone knows the online advertising market is in a slump.
But here's an interesting reason why, offered up by Jupiter Media Metrix (JMXI)
President Gene DeRose at his company's online ad conference Wednesday in
Manhattan: The faulty Internet infrastructure. Think of the bankruptcy of
Northpoint Communications, which terminated the DSL accounts of tens of
thousands of customers. Think of slow connections and all the times you've
failed to log onto the Web. Now, ask yourself: When was the last time your
television set suddenly stopped working and flashed an error message, like a
PC? When was the last time a commercial suddenly blanketed your entire TV
screen while the sit-com you were watching was still in progress, a la pop-up
ads? When was the last time the newspaper you were reading suddenly vanished,
like a lost Web connection? (PDL)
10:26 (Dow Jones) More crackle and chatter on Clear Channel Communications
(CCU). Lehman broadcasting analyst William Meyers notes the San Antonio company
issued 3Q guidance "below already tempered expectations." Still, he says, the
broadcaster's long-term fundamentals remain strong. He suggests investors "use
a dip as a buying opportunity and would look to add or to create positions in
the $55 area." Shares up 1.3% at $58.20. (BS)
10:19 (Dow Jones) Wholesale inventories fell by 0.2% in June, but were
revised up from +0.2% to +0.3% in May. Two implications: the net decline in
manufacturing and wholesale inventories in June undermines the 2Q estimate for
an already-small 0.7% increase in GDP; and since most wholesale inventories are
imports, the June data suggests a decline in imports in June. (JM)
10:15 (Dow Jones) Troubling trend on Nasdaq 100 Trust (QQQ) unearthed by
Bernie Schaeffer. Monday's trading volume on triple Qs ranked among lowest five
of all trading days over the past eight months. In the previous four examples
of such minimal volume, here's what happened to QQQs: Dec. 12, 2000, dropped
24% in next six days; Dec. 28, 2000, dropped 18% in next two days; Jan. 29,
2001, dropped 18% in next 10 days; July 3, 2001, dropped 13% in next five days.
Nasdaq 100 Trust off 0.5% Wednesday, having eased slightly Tuesday. (TG)
10:07 (Dow Jones) The MBA refinancing index rose 5.3% to 1730.1 for the week
ended Aug. 3, from 1643. The increase is not surprising, considering mortgage
rates were lower for the week, analysts say. The purchase index was also up by
2% to 318.2 from 312. (JSX)
10:01 (Dow Jones) Telecom companies have not had a good year. But now, the
implied volatility of the options of large telecom carriers like WorldCom
(WCOM), Sprint (FON), BellSouth (BLS) are hovering at or near 52-week lows.
This is an early indication of stability and of some investor anxiety moving
out of the sector, noted Paul Foster, options strategist at 1010WallStreet.com.
(KT)
9:54 (Dow Jones) U.S. Bancorp Piper Jaffray has been under the radar screen
when it comes to equity underwriting for the past year or so, but it's had a
strong run over the past two days. The firm led the IPO yesterday for Omnicell
(OMCL), which closed up 36% in its debut, making it the fifth-best first-day
performer this year. Now, it's priced an upsized follow-on for Integra Life
Sciences (IART), selling 4.4 million shares at $25.50. The deal was filed at
$24.50 a share. (RJH)
9:48 (Dow Jones) What to make of Clear Channel Communications' (CCU) 2Q
earnings performance Tuesday. Merrill analyst Jessica Reif Cohen believes the
broadcaster, which posted a 13% downturn in year-over-year Ebitda, as expected,
offers a look at how radio is doing in general. Third-quarter pacings are
weaker than expected for Clear Channel, she says, and near-term concerns exist
over U.S. and European advertising. Still, investors should "get a clearer
perspective on the true underlying demand for radio advertising" in August and
September, she says. Also of note: Radio begins to cycle out of the collapse of
dot-com advertising in the third quarter. (BS) |
