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

To: Dealer who wrote (45712)	12/31/2001 12:38:38 AM
From: RR	Read Replies (1) \| Respond to of 65232

Howdy Dealer! Brrrrr... still well below freezing. No snow. Just stepped outside and took a look around. Overcast with moon trying to break through the clouds. Was thinking we might just get the edge of the snow line sometime tonight but looks like it now is going south of us. Heading your way!!! Have a good week. Let's kick in this new year. RR

To: Dealer who wrote (45712)	12/31/2001 9:25:18 AM
From: Dealer	Respond to of 65232

M A R K E T .. S N A R S H O T -- Investors look to take a pause By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 9:14 AM ET Dec 31, 2001 NEW YORK (CBS.MW) -- Stocks are set to open on the downside Monday in a week that will be marked by the release of a cluster of crucial economic reports. Among the smattering of data due out this week: the December National Association of Purchasing Management Index, weekly jobless claims, November construction spending, the December employment report and the NAPM services index for December. Check economic calendar and forecasts. Glancing at the futures markets, the March S&P 500 contract edged up 1.20 points, or 0.1 percent, but was trading about 1.60 points below fair value, according to HL Camp & Co. Nasdaq futures gained 2.50 points, or 0.2 percent, while the Dow Jones Indicative Index inched up 25 points, or 0.2 percent. On the fund flow front, Trim Tabs reported that U.S. equity funds took in an estimated $86 million in the three days ending Dec. 27 for a monthly rate of $0.6 billion Aggressive growth funds took in $2.4 billion while technology lost $38 million and bond and hybrid funds saw outflows totaling $369 million. "We remain bearish. We expect that the liquidity trends of December will continue into the new year, with corporate liquidity to remain quite bearish as new offerings set records while there are few cash takeovers and stock buybacks," commented Charles Biderman, president of Trim Tabs. Lehman Brothers believes that stocks, while richly valued, should move higher in 2002 as earnings-per-share turn and inflation remains under wraps. "Key to our expectations of positive equity returns in 2002 is the robust policy response to the recession. Although further fiscal stimulus failed in Congress this month, previously legislated tax rate cuts will take effect later in the year. The evidence is mounting that the worst of the EPS news will soon be behind us [and] expect cyclicals to continue to lead this market rally," Lehman said in a research note. Lehman's portfolio remains overweight in the consumer discretionary, financials, industrial and materials sectors while the firm reduced its information technology exposure due to valuation concerns. Among shares trading before the official opening bell, ImClone Systems (IMCL) tumbled 18 percent in Instinet after the Food & Drug Administration didn't accept the company's filing for Erbitux, an experimental cancer treatment drug. The biotech company said it will meet with the FDA to discuss the agency's requests for additional information in order to accept the filing. Bristol-Myers Squibb (BMY), which has licensed the rights to market Erbitux, shed $1 to $50.80 in the pre-open. Merrill Lynch cut its rating on ImClone to an "intermediate-term buy" from an "intermediate-term string buy." "FDA actions against companies always raise concerns about the long-term risk factors with biotech companies. We expect the company to be in a better position to provide a roadmap for the filing once this meeting has been conducted," commented Merrill analyst Eric Hecht. Merrill noted that the rejection of the application could be "serious" and require additional clinical trial data. But the brokerage notes that it's entirely possible the application could be accepted after reanalysis of the radiologic data. Checking the tech group, Oracle (ORCL) added 22 cents to $14.28 in the pre-open. The software company announced late Friday that it would trim 800 positions, or 2 percent of its workforce, to decrease costs in its consulting division. Chip colossus Intel (INTC), meanwhile, added 9 cents to $32.33 in the pre-open. Commenting on the semiconductor sector, Goldman Sachs analyst Terry Ragsdale said the first quarter is expected to bring seasonal weakness, although lower inventory should provide some underlying stability. "We're bullish on the sector over six to 2 months and remain overweight but believe the recovery has been priced into stocks, limiting the upside over the near-term," the Goldman analyst told clients. Treasurys little changed Over in the government bond arena, prices kissed the flat line in early action, with no economic reports on tap until later in the week to incite trading activity. Checking levels, the 10-year Treasury note was up 1/32 to yield ($TNX) 5.105 percent while the 30-year government bond erased 2/32 to yield ($TYX) 5.535 percent. In the currency corner, the dollar slumped 0.1 percent to 131.13 yen while the euro rose 0.1 percent to 88.52 cents. --------------------------------------------------------------------------------