SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: Dalin who wrote (42550)9/25/2001 5:05:49 PM
From: Dealer  Read Replies (2) | Respond to of 65232
 
Two-day winning streak for stocks
But confidence sees biggest 10-year tumble

By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 4:13 PM ET Sep 25, 2001

NEW YORK (CBS.MW) -- Stocks squeaked out a gain Tuesday for a second straight session in the face of a plunge in consumer confidence and an earnings warning from AOL Time Warner. The session was punctuated by extremely choppy dealings.

"Everyone is so focused on the world events, what the U.S. strategy will be, what military actions will be exercised. As these events unfold, the market will react. This is an unusual situation, impossible to predict, and it's overwhelming anything else," remarked Steve Massocca, head of trading and president of Pacific Growth Equities.

In sector action, oil service shares were the hardest hit, along with utility, natural gas, transportation, gold and airline stocks. Among the upside movers: retail, drug, insurance, biotech and financial issues. All tech stocks surrendered early gains and ended lower, with the exception of the chip sector. Check market stats and latest sector performance.

The Dow Jones Industrial Average ($INDU) climbed 56 points, or 0.7 percent, to 8,659. Upside movers included AT&T, Boeing, Eastman Kodak, J.P. Morgan, United Technologies, Wal-Mart, Procter & Gamble and SBC Communications. Among the biggest losers were DuPont, American Express, General Motors, Honeywell, Merck, and Walt Disney.

Coca-Cola (KO) shed 0.1 percent after telling investors that it's on track to meet earnings targets for 2001. Thomson Financial/First Call is forecasting full-year earnings of $1.57 a share and third-quarter earnings of 40 cents per share. The beverage giant said it has seen slower U.S. sales since the Sept. 11 terrorist attacks but added that it's confident it'll deliver "strong growth" worldwide. The stock rose 2.0 percent in recent action.

The Nasdaq Composite ($COMPQ) gained 2 points, or 0.1 percent, to 1,501 while the Nasdaq 100 Index ($NDX) fumbled 3 points, or 0.3 percent, to 1,187.

The Standard & Poor's 500 Index ($SPX) added 0.9 percent while the Russell 2000 Index ($RUT) of small-capitalization stocks edged up 0.6 percent.

Volume came in at 1.58 billion on the NYSE and at 2.15 billion on the Nasdaq Stock Market. Market breadth was mixed, with winners beating losers by 19 to 13 on the NYSE while decliners bested advancers by 19 to 18 on the Nasdaq.

A.G. Edwards raises equity allocation

A.G. Edwards' investment strategy committee Chairman Mark Keller expressed confidence in the equity market, raising his equity allocation to 80 percent from 70 percent and reduced his fixed-income allocation to 20 percent from 30 percent with cash at zero.

"The pessimism that stock prices have reflected in the aftermath of the Sept. 11 attacks remind us of the emotional extremes that have characterized past important market lows -- and highs, for that matter, when the emotional extremes were optimistic," he said in a note to clients.

Keller noted that equity valuations are cheap in most sectors, as stock prices appear to have discounted a deep recession. "Even if we get the deep recession many stock prices seem to be looking for, we doubt that prices will decline much further."

A.G. Edwards said its economic outlook calls for no more than a mild recession.

"This tips the odds of making money in stocks over the next year strongly positive, in our opinion. With virtually every sector of the market at very low valuations, we think it is important to stay diversified," Keller said.

But Stephen Roach, chief economist at Morgan Stanley, cut his global economic growth estimate for 2001 to 1.8 percent from 2.1 percent and for 2002 to 2.1 percent from 3.4 percent.

The economist believes Japan and the U.S. are now in "outright recessions," and expects Europe to follow suit.

The day's data

September consumer confidence plunged even before the horrific terrorist attacks that occurred two weeks ago. The index, in fact, dropped to 97.6 from a revised 114.0 in August -- the biggest one-month drop in the gauge since October 1990 and much lower compared to expectations for a 103.9 reading. and check economic calendar and forecasts.

"This index is merely a reflection of the rising unemployment rate and we would have expected it to fall -- and keep falling -- even without the Sep 11 attacks. At its current level, however, the expectations index is consistent with real consumer spending rising at roughly a 1.50 percent pace -- bad but not a catastrophe," commented Ian Shepherdson, chief economist at High Frequency Economics.

Additionally, existing homes sales rose 5.8 percent to a 5.50 million rate vs. the 5.18 million that had been expected by economists surveyed by CBS MarketWatch.com.

Market not too disturbed by day's warnings

Investors had to digest a high-profile profit warning from AOL Time Warner (AOL) late Monday but the stock managed to stage an advance on Tuesday after hours of choppy trading. AOL rose 1.6 percent.

AOL Time Warner said its 2001 sales and cash flow would come in lower compared to expectations in the aftermath of the horrific Sept. 11 terrorist attacks in the U.S. and the sluggish advertising environment. AOL is expected to report cash flow of about $10.1 billion and revenue of some $38 billion -- both well below earlier estimates.

In the brokerage segment, Lehman Brothers (LEH) added 1.1 percent after announcing that its third-quarter profit fell 32 percent, although the broker still managed to beat Wall Street's profit targets, posting third-quarter earnings of $1.14 a share vs. $1.68 a share in the year-ago period and surpassing the $1.08 estimate.

Drug stocks climbed in the face of a 3.8-percent decline in shares of Merck (MRK), which struggled after the U.S. Food and Drug Administration ordered Merck in a warning letter to stop using certain promotional materials related to its arthritis drug Vioxx.

Airline stocks ($XAL) declined on nagging concerns over revenue following the terrorist attacks two weeks ago. Goldman Sachs analyst Glenn Engel said he now forecasts the airline industry to witness a 40 percent decline in revenue over the next six months as a result of the Sept. 11 events and sees a gradual industry recovery in 2002. But he said the group has fully discounted these losses. Continental shed 1 percent, Delta rose 3 percent and AMR rose over 2 percent.

Read for the latest individual stock market action.

Treasury focus

Treasury prices found decent support across the yield curve.

The 10-year Treasury note was up 7/32 to yield ($TNX) 4.69 percent while the 30-year government bond added 7/32 to yield ($TYX) 5.56 percent.

In the currency sector, the dollar traded mixed, adding 0.1 percent to 117.53 yen while the euro added 0.7 percent to 92.26 cents.

--------------------------------------------------------------------------------



To: Dalin who wrote (42550)9/25/2001 11:58:21 PM
From: stockman_scott  Read Replies (1) | Respond to of 65232
 
Jordan makes it official; he's coming back for two more seasons

By JOSEPH WHITE
AP Sports Writer
September 25, 2001

WASHINGTON (AP) -- The worst-kept secret in sports is out: Michael Jordan will play again in the NBA -- and not just for one season, but two.

After months of hints, smiles and winks that kept his fans on edge, Jordan finally announced his comeback Tuesday, saying he would play for the Washington Wizards through 2003 and donate his first year's salary -- $1 million -- to victims of the Sept. 11 terrorist attacks.

``I am returning as a player to the game I love,'' said Jordan, 38 and three years removed from what seemed to be a storybook ending to an unparalleled career. ``I am especially excited about the Washington Wizards, and I'm convinced we have the foundation on which to build a playoff-contention team.

``The opportunity to teach our young players and help them elevate their game to a higher level, and to thank the fans in Washington for their loyalty and support, strongly influenced my decision,'' he said in a statement issued through his management agency.

The five-time league MVP, who retired for a second time in 1999 after leading the Chicago Bulls to their sixth title of the decade, made it official after clearing up a licensing issue with one of his sponsors -- a disagreement that delayed the announcement by a day. NBA rules also required Jordan to sell his ownership stake in the Wizards.

Jordan never completely ruled out a comeback when he retired in January 1999, hedging his bets with the statement that he was ''99.9 percent'' certain he would never play again. Leaving the door open, even by one-tenth of 1 percent, meant Jordan could slip back into a uniform without going back on his word.

Now, he has.

``I am happy to welcome Michael Jordan, the player, back to the NBA, although, as commissioner, I am sorry to lose him in the board room,'' NBA commissioner David Stern said. ``Michael has always brought joy to basketball fans around the world, and, in these difficult times, we can all use a little more joy in our lives.''

Jordan's announcement was sure to hearten a city -- and entire country -- shocked by terrorism. Washington's economy has suffered since the Sept. 11 attacks, with Reagan National Airport remaining closed and hotel bookings far below capacity.

His regular-season debut will be Oct. 30 at Madison Square Garden against the New York Knicks, and his first home game for the Wizards will be Nov. 3 against Allen Iverson and the Philadelphia 76ers.

``This is certainly an extremely important moment in the history of our franchise, however our excitement is muted by the world events that surround us,'' Wizards owner Abe Pollin said.

``The greatest player in the history of the game is joining my team, and for that I am extremely honored and pleased.''

Jordan will be in the unusual position of playing for the coach he hired, Doug Collins, who joined the Wizards in April and also coached Jordan for three seasons with the Bulls in the 1980s. Jordan will share the court with players he signed, drafted and traded for, including high school sensation Kwame Brown, selected No. 1 overall by the Wizards in June, and veteran forward Christian Laettner -- a graduate of Duke, the archrival of Jordan's alma mater, North Carolina.

``We'll see how fast the No. 23 Wizards jersey becomes the No. 1 selling jersey in the NBA. That probably will start today,'' Collins said.

NBC said it would change its television schedule to include some Wizards games. Turner Sports will do the same, with TBS in line to air the season-opener.

``It will be fun to watch the greatest player ever match up against the NBA's new generation of stars, such as Allen Iverson, Kobe Bryant, Vince Carter, Tracy McGrady, Ray Allen and others,'' NBC Sports chairman Dick Ebersol said.

Jordan has been in training for about six months, at first saying he was simply trying to lose the extra weight he had gained in retirement. Inspired by his friend Mario Lemieux's successful comeback with the Pittsburgh Penguins, Jordan rigorously worked himself into playing shape during the summer by holding several invitation-only camps of pickup games with other NBA players at a gym in Chicago.

Jordan said he would no further comment on his return until Oct. 1. His first official practice with the Wizards will be the next day, when training camp opens in Wilmington, N.C.

He occasionally worked out with the team last season when he was president of basketball operations, a job he used to almost completely overhaul Washington's roster and put the team into a rebuilding mode.

His supporting cast will include the likes of Jahidi White, Richard Hamilton and Courtney Alexander -- none of whom were in the NBA when Jordan played for the Bulls.

Turning a team that won only 19 games last season into a winner might be an insurmountable challenge -- even for Jordan.

``I think he will return to being one of the top players in our league. His comeback certainly puts the Wizards in a position to make the playoffs this year,'' Knicks coach Jeff Van Gundy said.

With his announcement, Jordan immediately overshadowed the arrival in Washington of another winter sports star, Jaromir Jagr. The NHL's leading scorer last season was acquired by the Capitals in the offseason.

Jordan actually owned a piece of the Capitals, buying it when he acquired shares in the Wizards on Jan. 19, 2000.

The paperwork to sell his stake in both teams was completed Friday, and Jordan's lawyers ironed out the last few wrinkles to clear the way for his comeback announcement.

The final holdup involved the video game licensing rights to Jordan's likeness, according to Jeff Brown of EA Sports, a game manufacturer.

Jordan suffered three physical setbacks during the summer, raising doubts about whether his body could endure the rigors of an 82-game schedule. Back spasms and knee tendinitis curtailed his workouts, and two cracked ribs from a collision in a pickup game took him off the court for a month.

Jordan will return without the all-star cast that he hoped would accompany him. Charles Barkley, who spoke of playing with Jordan, abandoned his comeback bid, and the Wizards were unable to sign any marquee players.

But by ridding the Wizards of the high-salaried, long-term contracts of Rod Strickland, Juwan Howard and Mitch Richmond, Jordan has given the Wizards enough salary cap flexibility to restock the roster next summer.

Jordan's first-year salary of $1 million was confirmed by a team source, speaking on condition of anonymity.

When he returns for the 2002-03 season, the Wizards could have a roster that bears little resemblance to the current one.

``Who is to say that great things are not ahead with Michael and the Wizards,'' said Dean Smith, who coached Jordan at Chapel Hill. ``He has made excellent decisions in the past and I know he has given this one a lot of thought.''

Jordan won 10 scoring titles and is the NBA's fourth all-time leading scorer with 29,277 points. He has averaged a league-record 31.5 points per regular season game throughout his career and 33.4 in the playoffs.

Jordan's first retirement came in October 1993, after he led the Bulls to three titles. He played baseball in the Chicago White Sox organization for one season, but he couldn't make it out of the minor leagues and returned to the Bulls in March 1995.

Jordan led the Bulls to three more titles and retired again in January 1999, shortly before the start of the lockout-shortened season. He made his final shot in a Chicago uniform, sinking a jumper over Bryon Russell of Utah in Game 6 of the 1998 NBA Finals -- a play that came to be known as Jordan's ``last shot'' -- to give the Bulls their sixth title of the decade.

``While nothing can take away from the past,'' Jordan said, ``I am firmly focused on the future and the competitive challenge ahead of me.''



To: Dalin who wrote (42550)9/27/2001 1:31:34 PM
From: stockman_scott  Read Replies (2) | Respond to of 65232
 
Semiconductor Industry : Just how bad is it in the chip sector? Take a look at these numbers: the SOX Index is down 6.7% today, 32% since Sept. 10, and 43% since its intra-day high on August 28... That's a 43% decline in one month! The natural inclination would be to suggest that traders are panicking, and that the sector is now so deeply oversold that it should stage a near-term bounce... Only problem with that argument is that there's no obvious catalyst to trigger the reversal... Yes, stocks are a lot cheaper today than yesterday, last week or last month, but at this point most investors must be thinking that if they just wait a few more days, the group will be cheaper still... Technicals lend credence to this way of thinking, as SOX blew through important support in today's action... Next support of note not until the 325-310 area, or another 6%-10% away... The scope of the selling is staggering, but given the weakness in the PC and wireless markets, not terribly surprising... Sector had also escaped the severe pounding administered to others such as Net, storage and networking... No longer... Selling is ruthless, with communication chip companies absorbing the worst of the pounding... Applied Micro (AMCC 6.55, -8%), PMC-Sierra (PMCS 9.83, -16%), Broadcom (BRCM 19.14, -17%), TriQuent (TQNT 14.68, -16%), TranSwitch (TXCC 2.94, -14%) and Vitesse (VTSS 7.03, -9%) pacing the retreat... Though sector is overdue for a bounce, until the economic picture brightens a bit, investors should continue to steer clear of this group. -- Robert Walberg, Briefing.com



To: Dalin who wrote (42550)9/30/2001 11:39:41 AM
From: RR  Read Replies (1) | Respond to of 65232
 
Dalin, thanks for the pictures. Really enjoyed them.

Where did you go? Looked a little cold.

RR