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

To: Jill who wrote (43257)	10/15/2001 8:40:37 AM
From: Dealer	Read Replies (2) \| Respond to of 65232

M A R K E T .. S N A P S H O T -- Shares look to take a break By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 8:29 AM ET Oct 15, 2001 NEW YORK (CBS.MW) -- Stock prices are heading for a lower open Monday as investors prepare to wade through a downpour of earnings this week and next. While investors have discounted bleak earnings for the third and fourth quarters, they will comb through results to see what companies expect for early next year, when the economy is expected to recover thanks to the economic and fiscal stimulus already in place. "How the major averages handle themselves at the resistance areas we are now approaching will be key. An early look may well be provided by the pharmaceutical and biotech stocks, which are now struggling to break some very important down trendlines of their own," commented Mike Hurley, technical strategist at SoundView Technology Group. December S&P 500 futures gave up 7.00 points, or 0.6 percent, and were trading about 7.20 points below fair value, according to figures provided by HL Camp & Co. And Nasdaq futures lost 12.50 points, or 0.9 percent, and were trading about 22.30 points below fair value. Finally, the Dow Jones Indicative Index erased 60 points, or 0.6 percent, to 9,284. Among shares trading before the official opening bell, Oracle (ORCL) shaved 64 cents to $14.30 in Instinet. The chip sector will have to contend with a number of downgrades in the group, including ones from Lehman Brothers and J.P. Morgan H&Q. In the meantime, U.S. airstrikes on the Afghan capital Kabul and eastern city of Jalalabad continued Monday after President Bush rejected a Taliban offer to negotiate turning over prime terror suspect Osama bin Laden. On the fund flow front, Trim Tabs said U.S. equity funds took in an estimated $1.8 billion in the three days ending Oct. 11 for a monthly rate of $14.1 billion. Bond and hybrid funds lost $59 million during the same period. Trim Tabs said corporate liquidity weakened considerably last week, with new offerings rising to $3.9 billion and cash takeovers and stock buybacks less than $1 billion combined. "Now that Wall Street is pretty much back to where it was before Sept. 11, until corporate investors turn bullish, there is no new money to take prices higher," Trim Tabs commented in a research note. The fund flow tracker said it's turning fully bearish from cautiously bearish, as corporate investors aren't stepping up to buy shares at the same time the new offering calendar is surging. Trim Tabs said this indicates that corporate investors do not yet see a bottom to the current economic decline and are unwilling to use up cash to buy stock at this time. Treasury focus Treasury bonds traded a sliver higher, gaining traction as stocks headed for a sloppy start. The 10-year Treasury note was up 6/32 to yield ($TNX) 4.64 percent while the 30-year government bond ascended 7/32 to yield ($TYX) 5.41 percent. On the economic front, only August business inventories will be out. and check economic calendar and forecasts. In the currency arena, the dollar added 0.1 percent to 120.90 yen while the euro lost 0.1 percent to 91.06 cents. --------------------------------------------------------------------------------