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: Dealer who wrote (55255)	9/20/2002 4:02:44 PM
From: Sully-	Respond to of 65232

Sold my QCOM @ $28.08 (same price as yesterday). I'm not too happy with the way everything else played out today. Perhaps some more weakness early next week? In any event, a profit is a profit. There will be more opportunities next week. Ö¿Ö

To: Dealer who wrote (55255)	9/20/2002 4:24:41 PM
From: stockman_scott	Respond to of 65232

14:24 ET Sector Watch: Semiconductor Group index (SOX at 248) edged to a minor new session (and multi-yr) low in recent action with MU (-10.1%)--estimates cut-- and TXN (-6.1%)--downgrade-- the weakest performers. Also on the defensive are: LSCC (-2.5%); MXIM (-2.6%); XLNX (-2.3%). On a short term basis, it takes a push back through resistances at 250 and 253 to improve the bias. Bucking the trend today are: MOT (+3.9%), AMD (+1.7%) and TER (+1.7%).

To: Dealer who wrote (55255)	9/21/2002 2:17:07 PM
From: stockman_scott	Respond to of 65232

Stocks May Extend Losses as Earnings Fade: U.S. Stocks Outlook By Danielle Sessa New York, Sept. 21 (Bloomberg) -- U.S. stocks may extend their four-week decline as expectations for a rebound in corporate earnings fade. Hopes of profit growth for the rest of the year are dwindling after companies including Electronic Data Systems Corp., J.P. Morgan Chase & Co. and Kroger Co. reduced their forecasts this week. More companies are likely to trim projections or fall short of expectations as the third quarter ends, investors said. Goldman Sachs Group Inc., Lehman Brothers Holdings Inc. and Safeway Inc. are among the companies scheduled to release results next week. ``Growth expectations for the quarter and the rest of the year have done nothing but go straight down,'' said Will Braman, chief executive at John Hancock Funds in Boston, which oversees $29 billion. ``This was the quarter that numbers should have been up markedly from last year'' when the economy was in recession and businesses reeled following the Sept. 11 attacks. Analysts estimate an average 8.5 percent increase in earnings for companies in the S&P 500 for the three months ending Sept. 30, according to Thomson First Call. That's down from 11.2 percent at the start of the month and half the 17.1 percent rate anticipated at the beginning of the quarter. Analysts have ratcheted down predictions for full-year profit growth to 2.6 percent from 6.8 percent on July 1, First Call said. Corporate earnings fell 17.3 percent in 2001. Dow Slides Below 8000 Indexes fell for a fourth week this week. The S&P 500 dropped 5 percent. The Dow Jones Industrial lost 3.9 percent to below 8000. For both, it was the biggest weekly decline since July 19. The S&P 500 hasn't fallen for five straight weeks since June. The Nasdaq Composite Index's 5.5 percent decline was the steepest in a week since April. The declines have erased most of the gains in benchmark indexes since the S&P 500 fell to its lowest in more than five years July 23. The benchmark for U.S. stocks is up 5.5 percent since then. It has been up as much as 21 percent. The Dow is 3.2 percent above its low, paring an 18 percent rally. Escalating tensions between the U.S. and Iraq may further deter investors. President George W. Bush is seeking authority from Congress to attack Iraq, outlining a policy to strike first against ``rogue states and terrorists'' that he said threaten the U.S. ``If something does happen in Iraq, the general perception is that everything will go fine and it will be like the Gulf War,'' said Simon Moss, who helps manage $23 billion at Gartmore Global Investments in Conshohocken, Pennsylvania. ``The risk is that it won't and I don't think that risk is priced into the market.'' Slowing Economy Reports showing slowing economic growth also helped send indexes lower this week. Government data showed production at U.S. factories, mines and utilities dropped in August for the first time this year. Reports showed the rate of home construction fell and the number of workers filing first-time unemployment claims stayed above 400,000 for a fourth week. Investors will be focusing on reports next week on consumer confidence, home sales and durable goods. The Federal Reserve Policy Committee will meet on Tuesday and announce their decision on interest rates. The majority of Wall Street firms predict the Fed will keep borrowing costs at a 40-year low of 1.75 percent for the remainder of the year, according to a Bloomberg news survey. Among the companies reporting earnings, Goldman Sachs and Lehman follow Morgan Stanley, which disclosed an unexpected decline in third-quarter earnings. Shares of Morgan Stanley slid 14 percent this week, the biggest loss among brokerage shares. Shares of Safeway's bigger rival Kroger tumbled 23 percent after cutting its profit forecasts. Slowdown Concerns Kevin McCloskey, manager of the $3 billion Federated American Leaders Fund, said he's particularly concerned about earnings at computer-related companies, such as Electronic Data Systems. The company was the biggest loser in the S&P 500 this week, plunging 54 percent. The second-largest computer-services company lowered its anticipated earnings for the third quarter to as low as 12 cents from 74 cents. ``Technology spending in general is quite weak and there is no reason to be optimistic about it,'' he said. While his recent purchases include Pfizer Inc., the biggest drugmaker, McCloskey said earnings expectations ``are still too high'' as the economy slows. ``We anticipate numbers coming down and I'm not sure the stock prices reflect that.'' quote.bloomberg.com