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To: Dealer who wrote (53795)	7/12/2002 3:46:37 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

15:32 ET Rumors and terrorism fears rampant; must be Friday : We are hearing a number of rumors this afternoon, the most prominent of which involves Procter & Gamble (PG), which we're told is selling off due to talk of accounting/off-balance sheet issues; also, we're hearing that Barron's will run a negative article on AMZN this weekend; a similar rumor about an NY Times article in May turned out to be true in that there was an AMZN article, but it wasn't particularly negative. It should be noted that it's Friday afternoon, which seems to offer fertile ground for all sorts of rumors, most of which will prove to be false. There are also several terrorism-related stories going around, though none of the incidents discussed appear to be terrorist-related.

To: Dealer who wrote (53795)	7/12/2002 3:47:12 PM
From: stockman_scott	Respond to of 65232

Big Three Face Tough Future By Michael Ellis Friday July 12, 2:09 pm Eastern Time DETROIT (Reuters) - Ford Motor Co. (NYSE:F - News) will likely show a return to profitability when it posts quarterly results next week, and earnings at General Motors Corp. (NYSE:GM - News) are seen nearly doubling, even as worries about the world's two largest automakers mount. In an industry plagued by overcapacity and a brutal struggle for market share, Wall Street analysts say both companies face increasing price pressures and difficulties meeting their pension costs for hundreds of thousands of retired workers. Gains in the second quarter, traditionally the strongest part of the year as automakers build up car and truck inventories for the summer selling season, may prove only fleeting. Ford is expected to report a second-quarter profit of between 21 cents and 34 cents per share, with a mean estimate of 26 cents, according to Wall Street analysts surveyed by Thomson First Call, the investment research network. But it reported four straight quarters of losses, heading into the second quarter, and analysts see it slipping back into the red in the third quarter. In the second quarter last year, Ford lost 41 cents per share as the $2.1 billion after-tax cost for the second Firestone tire recall wiped out its profits. Without the charge, Ford would have earned 85 cents per share. Ford has been burdened by the expenses of higher consumer incentives, which have been only partly offset by the initial phase of its multiyear restructuring plan to cut 35,000 jobs, analysts said. Ford has also been losing U.S. market share to GM, which is expected to report earnings of $2.15 to $2.77 per share, according to First Call, with a consensus estimate of $2.42. GM posted a profit of $1.26 per share last year. GM, whose strong truck lineup, improved quality and lower manufacturing costs have helped resurrect the company over the past year, saw its U.S. sales rise about 1 percent in the second quarter. More important to earnings, since automakers count profits from vehicles when they are sold to dealerships or fleet customers, GM's North American production rose about 14 percent over the second quarter last year. Chrysler is also expected to post an operating profit next week when its parent company, DaimlerChrysler AG (NYSE:DCX - News; XETRA:DCXGn.DE - News), releases its results on Thursday. Combined, GM, Ford and DaimlerChrysler should earn a collective $2.7 billion in the second quarter, up from $1 billion in the first, said David Healy, an analyst with Burnham Investment Research. UNCERTAIN OUTLOOK But the outlook for the remainder of the year is uncertain. GM and Ford shares have been battered this week on concerns over the billions of dollars in pension and health-care liabilities facing the automakers, especially GM. Both Ford and GM rely on investments in stocks to fund retirement benefits, but analysts said weak markets have put automakers' assumptions of their investment returns into doubt. If the stock markets fail to recover before the end of the year, both automakers could be forced to spend heavily to offset the losses in their pension fund investments. Analysts have responded by downgrading their earnings estimates on GM and Ford. "You have to recognize that the (pension) losses are shaving off a large chunk of (earnings per share)," said Drew Newton, an analyst with Dresdner Kleinwort Wasserstein. Wall Street has also been spooked by concerns that the economy could go back into recession, despite economists insisting that the fundamentals remain on track for a gradual recovery. U.S. consumer confidence, according to a University of Michigan index, tumbled in early July, bucking forecasts for a rise and casting doubt on consumer spending. "If the consumer pops and we head into a double-dip recession, that's negative from the perspective obviously of a cyclical industry, for both Ford and GM," said Scott Hill, an analyst with Sanford Bernstein.

To: Dealer who wrote (53795)	7/12/2002 4:28:05 PM
From: Sully-	Read Replies (2) \| Respond to of 65232

Soooo, J6P comes home from work today & sees the DOW/S&P down big..... and they have been down for six straight days too............. then the news tells them ......... Qwest may restate '01 results (Q) 2.00 +0.13: WSJ reporting Qwest may restate '01 results, which could widen 2001 loss; restatement may involve approximately $1 bln in revenue...... Siebel Systems hits another new 52-wk low (SEBL) 11.65 -0.51:.......... Univ of Michigan index falls to 86.5 from 92.4 : The Michigan consumer sentiment index was much weaker than expected, and will weigh on the market due to fears of a consumer retrenchment............. Hmmmmm....... could be more selling & mutual fund redemptions come monday. BWTHDIK? Ö¿Ö