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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (39918)	8/7/2001 9:29:20 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

M A R K E T .. S N A P S H O T --Investors find relief in productivity Investors wait for Cisco's news By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 8:42 AM ET Aug 7, 2001 NEW YORK (CBS.MW) -- The futures markets staged a sharp reversal following the release of economic news revealing that second-quarter productivity rose by a larger-than-expected 2.5 percent. Analysts surveyed by CBS MarketWatch.com had expected productivity to increase by 1.4 percent. The increase was the largest in a year. The market also got positive news on the inflation front, as unit labor costs rose only 2.1 percent as hourly compensation was up 4.7 percent. But chip stocks are likely to be the tech sector's sour spot following a downgrade of the equipment segment by CS First Boston. The lowered view comes one day after cautious notes on Intel from Lehman Brothers and Salomon Smith Barney. Last week, though, Merrill Lynch sparked a rally in the group following a sweeping upgrade of the industry. September S&P 500 futures added 2.40 points, or 0.2 percent, and were trading about 1.10 points below fair value, according to HL Camp & Co. And Nasdaq futures gave up 5.50 points, or 0.3 percent. Investors are bracing for bellwether Cisco Systems' earnings report, due out after the closing bell. The stock traded down a touch in the pre-market. Among other shares trading before the opening bell, Dow stock Boeing (BA) was down 60 cents to $57.80 after rival Airbus confirmed on Tuesday it was planning to slow production due to delays from purchasers. CDW Computer Centers (CDWC) dropped over 6 percent in pre-market action after the company said late Monday it's uncertain it can meet its sales targets for August and September due to the economic slowdown. And Serena Software (SRNA) plunged 28 percent after warning late Monday that its second-quarter and full-year results would fall short of expectations. The company also announced a work force reduction. In merger news, Textron (TXT) announced it's selling its automotive trim unit to rival Collins & Aikman Products in a stock, debt and cash deal valued at about $1.4 billion. Under the terms of the deal, Collins & Aikman (CKC) will pay $1 billion in cash and debt assumption as well as stock in C&A Products valued at about $245 million. Market maker Knight Trading Group (NITE) detailed plans Tuesday to cut 10 to 20 percent of its workforce in its European operations amid the downturn in European stock markets. Treasury focus Checking the Treasury sector, prices were little changed ahead of the first leg of the Treasury's refunding auction. On tap Tuesday is an $11.0 billion sale of 5-year notes. The 10-year Treasury note was off 2/32 to yield ($TNX) 5.17 percent while the 30-year government bond added 3/32 to yield ($TYX) 5.59 percent. Still ahead on Tuesday's economic agenda is June consumer credit, expected to come in at $7.6 billion. and economic calendar and forecasts. In the currency sector, dollar/yen shed 0.1 percent to 123.77 while euro/dollar gave back 0.5 percent to 0.8766. --------------------------------------------------------------------------------