Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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: stockman_scott who wrote (46525)	1/16/2002 8:27:32 AM
From: Dealer	Read Replies (2) \| Respond to of 65232

M A R K E T .. S N A P S H O T -- Stocks set for broad decline Intel's outlook, J.P. Morgan's miss to weigh By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 7:48 AM ET Jan 16, 2002 NEW YORK (CBS.MW) -- Concerns over earnings growth continue to hamper stocks, which are set for a sharply lower open on Wednesday. Investors displayed disappointment with the outlook presented by Intel as well as an ugly earnings miss from Dow stock J.P. Morgan Chase. March S&P 500 futures gave up 7.30 points, or 0.6 percent, and were trading about 5.60 points below fair value, according to HL Camp & Co. And Nasdaq futures descended 33.00 points, or 2.0 percent. In the pre-open, Intel (INTC) fell 81 cents to $33.87 while Advanced Micro Devices (AMD) slipped 67 cents to $18.48. Intel reported late Tuesday a fourth-quarter profit from operations of 15 cents a share, besting the Wall Street consensus estimate by four cents. But the chip behemoth presented a cautious outlook going forward, which knocked its shares in the pre-open. Intel said that first-quarter revenue was expected to come in between $6.4 billion and $7.0 billion vs. the $6.53 billion currently expected by analysts. And Intel said capital spending for 2002 should come in at $5.5 billion compared with $7.3 billion in 2001. Many analysts had expected a spending level between $6 billion and $7 billion. The news sent shares of chip equipment companies, which sell their wares to Intel, sharply lower in the pre-open. Applied Materials (AMAT), for one, erased a hefty $2.97 to $42.64 in Europe. J.P. Morgan Chase (JPM), meanwhile, posted a profit from operations of 12 cents a share in the fourth quarter vs. the Thomson Financial/First Call estimate of 34 cents. Treasurys higher Over in the government bond arena, prices traded higher on expected woes in the equity market. The 10-year Treasury note was up 1/4 to yield ($TNX) 4.81 percent while the 30-year government bond was flat to yield ($TYX) 5.33 percent. Investors will have a plethora of economic numbers to assess, including the December consumer price index, seen coming in at flat levels overall and up 0.2 percent at the core, which excludes food and energy components. Also due out: November business inventories, seen falling 0.8 percent, December industrial production, expected to have risen 0.1 percent, capacity utilization, expected to come in at 74.7 percent, and the Fed's Beige Book report on economic conditions. Check economic calendar and forecasts. In the currency sector, the dollar gained 0.3 percent to 131.41 yen while the euro gave back 0.2 percent to 88.13 cents. --------------------------------------------------------------------------------