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

To: Venkie who wrote (42783)	10/3/2001 1:57:43 PM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Stocks Surge, Cisco Stands by Targets Wednesday October 3, 1:36 pm Eastern Time NEW YORK (Reuters) - Stocks surged in early afternoon trading on Wednesday after Cisco Systems Inc. (NasdaqNM:CSCO - news) stood by its earnings targets, lifting sentiment already underpinned by upbeat economic data and the prospect of more fiscal stimulus from the Bush administration. The technology-packed Nasdaq Composite Index (.IXIC) rallied 81.29 points, or 5.45 percent, to 1,573.62. The Dow Jones industrial average (.DJI) jumped 95.62 points, or 1.07 percent, to 9,046.21. The broader Standard & Poor's 500 Index (.SPX) was up 14.29 points, or 1.36 percent, at 1,065.62. Cisco, a technology bellwether, leaped $2.46 to $13.94 and pulled the market higher. The company's chief executive said he is comfortable with analysts' quarterly estimates for the world's largest maker of Internet networking equipment. The rally added to gains on Tuesday after the Federal Reserve cut interest rates for a ninth time this year to boost the economy. Wednesday's advance had gained momentum after Treasury Secretary Paul O'Neill said a legislative package to boost the economy after the Sept. 11 attacks could total up to $75 billion. This would come on top of emergency money already approved by Congress. The National Association of Purchasing Management's non-manufacturing report for September showed the non-manufacturing business activity index rose to 50.2 last month from 45.50 in August, which was then a record four-year low. Economists on average were expecting the latest reading to come in even lower -- at 43. A reading above 50 indicates growth, while one below 50 shows contraction. _________________________________________ BTW, it's a FANTASTIC DAY....confidence is coming back....What a great day to be LONG...=) Regards, Scott

To: Venkie who wrote (42783)	10/4/2001 3:20:20 AM
From: stockman_scott	Respond to of 65232

Dell Paints Rosier Picture for 4Q Thursday October 4, 1:20 am Eastern Time By CONNIE MABIN AP Business Writer AUSTIN (AP) -- When Dell Computer Corp. executives speak with analysts Thursday many believe the company will lower its fourth-quarter earnings expectations like others in the slumping industry further injured by the economic fallout of the terrorist attacks. ``I don't think anybody is going to have a happy time moving through the next few months in the PC business,'' said Steve Kleynhans, an analyst with Meta Group. The industry was already hurting from a slowing economy and since the attacks Sept. 11 consumers have cut back even more on spending. Stocks also took a hit, with Dell shares plummeting to a 52-week low of $16.01 Sept. 21. Shares were boosted when founder and chief executive Michael Dell bought 4.3 million company shares worth $72 million in the past two weeks, according to the U.S. Securities and Exchange Commission. Wednesday, shares were up $2.62, or 14 percent, to $21.16 in trading on the Nasdaq Stock Market. The Round Rock-based company is focusing on a rosier picture of the future, playing up their push to strengthen services, storage and expansion overseas to augment slow PC sales. ``Given the economy and the events of the last couple of weeks I think we're still feeling pretty good about the consistency and the trajectory of our business,'' said Kevin Rollins, president and chief operating officer. Earlier this week, Houston-based Compaq Computer Corp. [NYSE:CPQ - news] said that it lost about a week's worth of business as a result of the attacks and would report an operating loss in the third quarter. Analysts said Dell likely will be the best in the worst of times because of a tight supply chain and its direct sales model. ``Having those fundamentals really operating well -- a strong supply chain, good customer relations, a terrific buying experience and solid machines -- having those things all together positions them about as well as you could be positioned going into what is promising to be a blisteringly bad quarter,'' he said. ABN AMRO last week reduced its Dell revenue estimates to $7.2 billion from $7.4 billion and earnings estimates to 15 cents per share from 16 cents per share. U.S. Bancorp Piper Jaffray, Bear Stearns and Gardner of Salomon Smith Barney have all cut estimates. Wall Street is expecting 17 cents per share in the fourth quarter, according to a survey of analysts by Thomson Financial/First Call. Dell has not given a formal forecast for either the third or fourth quarters, but Rollins said in an interview with The Associated Press that Dell could get a boost from strong computer sales to government in the third quarter, typically a government-driven quarter. The company replaced 10,000 computer systems just in the first two days after the attacks on the Pentagon and World Trade Centers, Rollins said. Dell plans to continue slashing prices to gain market share even though it has hurt profits. Dell is the only company making money on PC sales. Barry Jaruzelski, a management consultant with Booz Allen & Hamilton, said Dell needs to make good on its promise to expand beyond PCs. ``They can fight the cost battle but there's only so far they can go,'' he said. On the Net: dell.com