MARKET TALK: Not Exactly CIT...
01 Jul 16:26
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201-938-5299; All Times Eastern)
4:25 (Dow Jones) No IPO yet, but shares of the Nasdaq Stock Market began
trading anyway. Nasdaq shares, which were sold in a private placement in 2000
and 2001 and now have become available for sale, traded on the over-the-counter
bulletin board Monday under the ticker symbol NDAQ. The stock traded 1300
shares at $15. Nasdaq hasn't returned calls seeking comment, but the market
said in a filing with the SEC that it isn't encouraging efforts to trade its
stock on the OTCBB. Nasdaq has said that it is working toward an IPO that could
be held as early as the 4Q. (GFC)
4:04 (Dow Jones) Someone forgot to tell stocks it's the second half. You
know, when the recovery picks up steam and profits grow. What's that - you'll
believe it when you see it? Well, who can blame Wall Street for being
skeptical. The mad rush to get out of WorldCom makes for one of busiest days in
Nasdaq history, but it'll be interesting to see what technicians have to say
about that in measuring importance of this brutal selloff. Soft volume in next
few sessions, related to July 4, and worries about terror, related to same
thing, should make for interesting few sessions. DJIA drops 132 to 9110, Nasdaq
Comp plunges another 4%, or 59, to 1403, its lowest close in more than five
years, and S&P 500 sheds 22 to 968 (preliminary). (TG)
3:53 (Dow Jones) Tsy's O'Neill not sounding quite as opposed to forex
intervention now, saying earlier he's "agnostic" about currency intervention
and that individual governments should decide on their own interventions. Given
his recognized contempt for intervention as a policy tool and his reputation as
a laissez-faire type of Treasury Secretary, this sounds like a slight shift,
particularly after Friday's BOJ action that involved the ECB and Fed. (GMM)
3:36 (Dow Jones) Barring a pretty robust, and most unlikely, late-session
bounce, the Nasdaq Comp is going to close way below its finish for Sept. 21 of
last year, and, in fact, will hit its lowest close since June 10, 1997. Not to
be a downer, bulls, but chart watchers say there's more coming. Nasdaq Comp
falling 58 to 1405, DJIA off 102 at 9140, and S&P 500 sheds 18 to 971. (TG)
3:22 (Dow Jones) GKST economist Brian Wesbury says, "we expect no double-dip
this year and look for broad-based economic growth in the second half of 2002."
(JCC)
3:05 (Dow Jones) Major equity averages showing a familiar pattern (besides
just the weakness): lower lows as the session progresses. Don't get too excited
about the volume on Nasdaq: about half of it is WorldCom's. So, it turns out
the changing of the calendar doesn't impress stocks, which will wait for signs
that the ongoing recovery in the economy is finding its way to businesses, and
that the leaders of those businesses aren't making the numbers up. DJIA down 50
at 9192, Nasdaq Comp falters by 47 to 1416 (another 3%), and S&P 500 drops 13
to 976. (TG)
2:53 (Dow Jones) The competition heats up among the three largest U.S.
options exchanges: The more established CBOE and Amex still lead equity-options
volume with market shares in June of 26.6% and 26.4%, respectively, according
to the Option Clearing Corp. But the all-electronic, two-year-old ISE is
closing the gap. Its market share of all equity options reached 24.4% last
month. In fact, the ISE announced Monday that its market share rises to 27% if
one considers only trading volume in the 507 option classes the ISE trades (the
other exchanges list more). That would edge the young exchange past the CBOE
and the Amex for the first time. (KT)
2:42 (Dow Jones) Tellium's (TELM) huge preannounced shortfall in 2Q revenue
($3 million vs. UBS' expectation of $30 million) underscores the company's
revenue concentration risk and the challenge to broaden customer base amid weak
market conditions. In future, UBS expects the risk to continue to severely
impact revenue outlook for the next few quarters, which may be offset by
company's cost cutting and cash conservation efforts. Keeps hold rating, cuts
price target to 80c from $2.30. TELM off 36% at 59c. (TG)
2:26 (Dow Jones) Lehman Brothers economists voice concern that financial
market fragility may soon have economic consequences. (JCC)
2:14 (Dow Jones) Prudential Securities says Gannett (GCI) stands to reap
revenues as politicians start duking it out on the airwaves heading toward
Election Day. The firm boosted its rating on Gannett to buy from hold, and
raised its price target to $87 from $74. Gannett, publisher of USA Today, owns
T.V. stations that are No. 1 or No. 2 in key election hot spots like
California, Florida, Michigan and North Carolina, Pru notes. The firm expects
Gannett to take in $50 million in political ad revenue in fiscal 2002, but says
that if the number comes in around $70 million it would boost
earnings-per-share by 3 cents to 4 cents. GCI off 0.2% at $75.74. (DAY)
2:04 (Dow Jones) Among the phalanx of central banks meeting this week to
decide on interest rates, the ECB, the BOE and Sweden's Riksbank may well stand
pat for now, reflecting global concerns about the weakness of asset prices,
particularly stocks, surrounding U.S. corporate accounting blowups, says Tim
Stewart, chief currency strategist with Morgan Stanley in NY. However, don't
take this hiatus in their tightening cycles as a sign that these central banks
frown on the appreciation of their currencies vs. USD, and expect them to
continue hiking rates later this year, Stewart adds. (JNP)
1:49 (Dow Jones) Morgan Stanley's Stephen Roach says, "The credibility of US
businesses is being challenged as never before. What keeps me awake at night is
how, and under what circumstances, the bleeding stops." He says Corporate
America "needs to become far more aggressive in clearing the decks and
restoring its credibility." (JCC)
1:39 (Dow Jones) Treasurys are off intraday lows as stocks fall marginally.
Traders say the market is grasping for direction after stronger-than-expected
ISM numbers and a still weak stock market. Trading is quiet as some
participants are absent for an extended July 4th holiday. Ten-year Treasurys
are down 6/32 to yield 4.83%. (JSX)
1:29 (Dow Jones) Pru's Ed Keon notes all sectors within S&P 500 had negative
returns in June with exception of energy, which was flat. Information tech
(-1.8%), health care (-1.3%), and consumer discretionary (-1.1%) were biggest
negative contributors for month. Year to date, IT (-5.6%), health care (-2.5%),
and telecom (-2%) have been biggest negative contributors, while consumer
staples (+0.4%) and energy (+0.3%) have been biggest contributors. (TG)
1:02 (Dow Jones) S&P will review British Telecom's (BTY) rating outlook soon,
agency says in a report summarizing the state of play at Europe's
investment-grade telcos. This follows recent review with company management,
and comes given implementation of debt reduction strategy, S&P says. BT
currently A- with negative outlook. (RGB)
12:47 (Dow Jones) No sign of a double dip, says Merrill's Bruce Steinberg. In
fact, the U.S. recovery is alive and well - accounting scandals will lead to
regulatory reform but they will not impair the strength of the recovery. He now
looks for 2002 GDP of 3.2%, up from 3.1%. (TG)
12:32 (Dow Jones) USD remains firm even as stocks head south, with both DJIA
and Nasdaq now trading in negative territory. EUR/USD currently listed around
$0.9882 while USD/JPY is at Y119.96. (TDL)
12:15 (Dow Jones) "I don't think much of the data right now because no one's
looking at it," Jeremy Fand at Friedberg Mercantile Group said of
stronger-than-expected ISM numbers. People are more concerned with the U.S.
stock market and its effect on the current account deficit, he added. (TDL)
11:57 (Dow Jones) Federal funds futures prices rotating around unchanged
after a slight weakening in prices immediately following this morning's data
releases. Contracts continue to reflect around a 50% chance of a tightening
scenario by the early November Fed meeting. (CMN)
11:49 (Dow Jones) The Russians are beating the drumsticks again about another
possible ban on U.S. poultry. This time they're insisting that fowl imported
from the U.S. be certified safe under Russian veterinary standards. Talks
between the two countries are being called "quite unsatisfactory," and Midwest
Research agri-analyst Christine McCracken advises clients that the threatened
Aug. 1 ban could be bad news for Tyson Foods (TSN) earnings for several
quarters. Recall that when Moscow stopped imports earlier this year, a glut of
chicken in the U.S. led to lower prices for pork and other meats and impacted
shares of Tyson, Smithfield Foods (SFD) and Hormel Foods (HRL). (RLG)
(END) DOW JONES NEWS 07-01-02
04:26 PM |
