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

To: stockman_scott who wrote (46653)	1/18/2002 8:04:29 AM
From: Dealer	Read Replies (3) \| Respond to of 65232

M A R K E T .. S N A P S H O T -- Shares brace for deep declines By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 7:58 AM ET Jan 18, 2002 NEW YORK (CBS.MW) -- Optimism was quick to fade on Wall Street as earnings worries returned to the fore after a day of rest. Shares are set for steep declines once the opening bell sounds on Friday as investors are set to show their disappointment with the conservative outlooks provided by some tech bellwethers. March S&P 500 futures gave up 6.20 points, or 0.5 percent, and were trading a lofty 11.90 points below fair value, according to HL Camp & Co. And Nasdaq futures lost 23.00 points, or 1.4 percent and were trading a heady 38.20 points below fair value. Microsoft (MSFT) fell 4 percent in European trading. Investors focused on the software giant's lower-than-expected revenue estimate for the current quarter. Microsoft, in fact, expects fiscal third-quarter earnings of 50 to 51 cents a share on revenue of $7.3 billion to $7.4 billion. Thomson Financial/First Call had expected earnings of 47 cents a share and revenue of $7.49 billion. For fiscal 2002, earnings are seen coming in between $1.57 to $1.60 a share on revenue of $28.8 billion to $29.1 billion. Wall Street analysts had projected EPS of $1.83 and revenue of $28.6 billion for the full year. In the meantime, Microsoft posted a fiscal second-quarter profit from operations that surpassed Wall Street's view. Revenue also topped projections. IBM (IBM) slipped $4.58 at $115.32 in Europe. Big Blue reported after the close Thursday a fourth-quarter profit that bested Wall Street's projection, though sales came in at lower than expected levels. Meanwhile, Nortel Networks (NT) posted a fourth-quarter loss that was in line with expectations while sales surpassed projections. Nortel said sales in the first quarter are likely to fall 10 percent below fourth-quarter levels before growth starts to resume in the second quarter. Treasurys fumble Government bonds waffled, with investors shunning the fixed-income market for another session. Buyers were held back Thursday by the most recent round of favorable economic news. The 10-year Treasury note was off 1/32 to yield ($TNX) 4.93 percent while the 30-year government bond erased 3/32 to yield ($TYX) 5.41 percent. The economic docket will see the release of the November trade gap, expected to reveal a deficit of $28.5 billion. Also due out: the Michigan consumer sentiment index for January, expected at 89.4. Check economic calendar and forecasts. In the currency sector, the dollar rose 0.3 percent to 132.91 yen while the euro was flat at 88.10 cents.