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

To: Dealer who wrote (49023)	3/27/2002 1:03:58 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

Storage stocks advance as chips lag By Chris Kraeuter & August Cole, CBS.MarketWatch.com Last Update: 12:12 PM ET March 27, 2002 NEW YORK (CBS.MW) -- Shares of storage technology companies traded higher Wednesday, led by EMC, while most semiconductor companies traded modestly lower. Storage stocks advanced broadly. EMC (EMC: news, chart, profile) rose 3.6 percent to $11.08 after a Wall Street Journal report citing analysts indicated the company may cut more jobs amid slow demand. EMC cut 4,000 jobs last year and is expected to cut around 1,100 by midyear. But some analysts are expecting up to an additional 1,900 jobs, or 10 percent of the work force, to go as a way to meet plans to return to profitability in the second half of this year, the report says. Sun Microsystems (SUNW: news, chart, profile) rose 2 percent to $8.59, Brocade (BRCD: news, chart, profile) added 3.2 percent to $26.05, Emulex (EMLX: news, chart, profile) gained 4.1 percent to $31.05, and Network Appliance (NTAP: news, chart, profile) rose 3.9 percent to $19.82. Intel (INTC: news, chart, profile) gave up 48 cents to $30.29. Intel's board declared a regular 2-cent a share dividend payable on June 1 to shareholders of record on May 7. Also, analyst Scott Randall of SoundView Technology cut his second-quarter earnings estimate for Intel by a penny due to concerns regarding motherboard demand. A morning research report from SoundView's Mark Specker cited proprietary research in Taiwan indicating demand for motherboards continues to weaken. In turn, SoundView cut its PC unit demand forecast for the quarter ending June by 1 million units to about 29 million units, flat with the sequential first quarter. Analysts at SoundView also cut targets for Dell and Microsoft due to the same concerns. Dell (DELL: news, chart, profile) fell 50 cents to $25.69. Compaq (CPQ: news, chart, profile), which is set to be acquired by Hewlett-Packard (HWP: news, chart, profile), lost 25 cents to $10.60. H-P fell 39 cents to $17.69. Apple (AAPL: news, chart, profile) gained 4 cents to $23.52. Royal Philips Electronics (PHG: news, chart, profile) entered into a five-year marketing and supply alliance with Dell Computer that could generate sales of up to $5 billion based on an expected annual growth rate of 25 percent. Philips' current sales to Dell stand around $600 million a year, and are based largely on sales of cathode-ray tube monitors. The new pact calls for Philips to supply further products, including flat-panel monitors, optical storage devices and connectivity systems. Philips products will also be attainable through the Dell Web site. The pact will make Philips the third largest global supplier to Dell, a Philips spokesman said. Philips U.S.-listed shares rose 1.8 percent to $29.45.