No shorting. Mostly cash now. From Briefing.com: Close Dow +87.60 at 10259.74, S&P +7.24 at 1172.51, Nasdaq +15.11 at 2059.38: The major averages finished Friday's session in positive ground. Total volume traded was once again notably strong with the Nasdaq exceeding 2 billion shares for the second consecutive session. For the week, the Nasdaq rose 3.6% while the Dow put in a 1.2% advance...
A batch of generally favorable economic data contributed to Friday's positive market tone. First out was the December Employment Report which was released prior to the market open. Non-farm payrolls fell by 124,000 which was better than the consensus estimate for a 155,000 decline. In addition, the unemployment rate for December came in at 5.8% which was in line with consensus expectations...
While the well received employment report set the early tone for the session, investors had another economic report to consider shortly after the market open. The non-manufacturing ISM (formerly NAPM) index -- a measure of general health in the service industry -- rose 2.9 points to 54.2 for December. The better-than-expected December number marks two months of expansion following October's record low. In addition, the index is now at its highest level since last June. A significant contributor to the index' rise was new orders which rose 4.3 points to 52.6... Next week is the last relatively light week on the earnings calendar before earnings season swings into full gear. Nonetheless, there are a few reports due out early next week that are worth a passing mention. Tuesday before the open, look for aluminum maker Alcoa (AA) to report its quarterly results. That's followed by reports from homebuilder Lennar (LEN) and apparel retailer Nautica (NAUT) on Wednesday. The economic calendar is also reasonably sparse next week though the Producer Price Index or PPI is set for release next Friday morning.DJTA +3.8%, DJUA -0.7%, Nasdaq 100 +0.5%, Russell 2000 +0.8%, SOX -0.1%, S&P Midcap 400 +1.3%, XOI +0.4%, NYSE Adv/Dec 1997/1163, Nasdaq Adv/Dec 2168/1470
3:30PM : Next week is the last relatively light week on the earnings calendar before earnings season swings into full gear. Nonetheless, there are a few reports due out early next week that are worth a passing mention. Tuesday before the open, look for aluminum maker Alcoa (AA) to report its quarterly results. That's followed by reports from homebuilder Lennar (LEN) and apparel retailer Nautica (NAUT) on Wednesday. The economic calendar is also reasonably sparse next week though the Producer Price Index or PPI is set for release next Friday morning. DJTA +3.7%, DJUA -0.7%, Nasdaq 100 +0.9%, Russell 2000 +1.0%, SOX +0.1%, S&P Midcap 400 +1.3%, XOI +0.6%, NYSE Adv/Dec 1969/1121, Nasdaq Adv/Dec 2133/1422
2:00PM : The major averages continue to hold in positive ground at this point in the session. Large cap technology names have performed relatively well due in part to two positive pre-market research notes on key names. First, Salomon Smith Barney was out with positive comments regarding Intel (INTC +1.5%). The firm believes all indicators show Intel had a strong finish to its fourth quarter, driven by solid P4 demand and modestly firmer pricing. Going further, Salomon said higher revenues should give a slight boost to gross margins, which should in turn drive higher profits. The firm is maintaining its Buy ratin and has increased fourth quarter revenue and EPS estimates to $6.98 billion and $0.12 from $6.8 billion and $0.10 respectively. Separately, Banc of America issued a positive research note on EMC Corp. (EMC +2.0%) this morning. The firm believes EMC is at an inflection point and says fundamentals are poised to improve over the next few quarters. The analyst calls are contributing to buy interest in both names today with Intel posting a gain despite general sell pressure on the SOX. DJTA +3.6%, DJUA -1.1%, Nasdaq 100 -0.3%, Russell 2000 +0.4%, SOX -0.6%, S&P Midcap 400 +0.8%, XOI +0.4%, NYSE Adv/Dec 1815/1236, Nasdaq Adv/Dec 1912/1558
3:26PM Earnings Calendar : Will begin to see some earnings reports trickle in next week. Among those reporting will be ATYT, CREE, RATL, ACN, RMBS. The tidal wave begins the following week (Jan 14-18), with ADTN, ET, TTWO, ET, EBAY, INTC, JNPR, RFMD among the co's releasing early in the week.
2:30PM Sanmina-SCI (SANM) 23.11 +1.22 (+5.6%): Finding buy interest as rumor makes its way around trading floors that co is in the running to receive a major contract from IBM.
11:24AM Needham on Semi Equipment : Needham is cautious on the semi equipment group, believes that a capacity-driven upturn will not occur in 2002 and may not happen until the end of 2003; new orders should not occur until capacity reaches about 85-90% (it is currently at 64%). Firm sees at least two rallies in 2002: the first is already underway and the second should occur around mid-year. Sees ATMI as a good pick now, as wafer starts typically grow long before excess capacity is used up; ASYT and FSII are currently undervalued, while BRKS, LTXX, and MKSI are attractive on pullbacks.
11:14AM RF Micro Device (RFMD) 21.28 -1.50 (-6.6%): Stock comes under pressure in reaction to rumor circulating that co might miss its quarter. However, we are hearing these concerns are possibly tied to a slightly cautious research report issued yesterday by Banc of America Sec. The comment, which was not widely disseminated, discusses RFMD's valuation and the likelihood that RFMD will not deliver much upside to quarterly estimates, but does not imply that co will miss its qtr. The analyst who made the call is said to reiterating these opinions this morning, telling investors that yesterday's comments were taken out of context. Maintains a positive long-term view on the name.
9:11AM Broadcom (BRCM) 47.70: Trading up to $49 pre-market after CNBC reports on a JP Morgan note; the note itself is less bullish than suggested; analyst sees some short-term upside with company expected to announce new products and design wins, but says stock is richly valued and that long-term investors should buy in the $30s on potential weakness.
8:51AM Telecom Equip : Hearing from sources at Bernstein that analyst Paul Sagawa expects strong stock performance for the telecom equipment sector in 2002 as a cyclical upturn begins in the second half of the year; he believes that "sexy" stocks such as CSCO are overvalued and that MOT and ERICY will still struggle with unwieldly cost structures, but recommends NOK, LU, COMS, PALM, and NT, in order of preference.
8:08AM MIPS Techs (MIPS) 9.85: Thomas Weisel Partners upgrades to BUY from Mkt Perform.
8:04AM Integrated Device (IDTI) 30.00: SG Cowen positive on IDTI, believes that co may accelerate plans to consolidate its fabs, which could add at least $0.25 to EPS per year; since timing of closures is unclear, firm is not changing ests but anticipates a significant upward revision soon. Maintains Buy rating.
finance.yahoo.com
I may have exited prematurely but it is always nice to have some cash in hand.
RtS |
