From Briefing.com: 10:30AM : Indices continue to hold near their highs of the day as investors return to the action, emboldened by the market's relative strength in recent sessions... Strikingly, at its high of the morning, the Dow was up nearly a thousand points, or 13.4%, from its low last Thursday... It is worth noting that most European bourses are up between 4-6% today... Presently, the major indices in the U.S. are sporting gains in the 3-4% range... Nasdaq 100 +4.2%, Russell 2000 +3.1%, SOX +6.1%, S&P Midcap 400 +3.7%, NYSE Adv/Dec 2353/593, Nasdaq Adv/Dec 2124/582
10:23AM Intel Intraday (INTC) 15.99 +0.89: -- Update -- -- Technical -- Stock surges in early trade stopping just shy of resistance at its 50 day ema/sma (16.07/16.15). Intraday support at 15.75 and 15.60 remain intact and the issue remains well positioned. Next resistances are at 16.31/16.38, 16.58 (top of Sep 12 gap) and 17.04/17.10 (Sep high, 62% retrace of Aug/Oct slide).
10:00AM : Strong start for the equity market, which is posting some sizable, and broad-based gains... A confluence of factors are contributing to the bullish bias with the following among the key motivating forces: (1) yesterday's resilience in the face of troubling news (2) big gains in foreign markets (3) better than expected quarterly results from several blue chip companies like Citigroup (C 33.00 +2.69) and General Motors (GM 35.27 +2.01) (4) rumors of an asset allocation out of bonds and into stocks last Friday by a "large account" and (5) short-covering activity...
At this point, industry weakness is essentially measured in terms of which groups are up the least... Technology stocks top the list of winners... NYSE Adv/Dec 2229/534, Nasdaq Adv/Dec 1967/516
9:29AM S&P 500 levels of interest : -- Technical -- While not indicated to open with the same percentage gain as the tech dominated Nasdaq, the S&P 500 is currently in position for a test of resistance at 865/866 (50% retrace, 50 day ema) in early trade. Next resistances are at 871/872 and 876. Supports are at 856, 852 and 844.
9:23AM Nasdaq Composite levels of interest : -- Technical -- Index poised for a strong start with the pre-market indicators suggesting a test of resistance in the 1267/70 area in early action. This marks the 50 day sma and the 50% retrace of the Aug/Oct slide. Resistances thereafter are at 1280, 1295 and 1306. Support is at 1240/1235 with a more important floor at 1220.
9:20AM Siebel Systems: CSFB sees possible MSFT investment (SEBL) 6.89: -- Update -- CSFB says that Bill Gates' keynote speech at SEBL's Oct 20-23 user conference may include more than just an announcement of support for .Net; CSFB sees the possibility of financial, development, and joint sales commitments, and believes MSFT might make a small minority investment in SEBL. Rumors of some sort of link between MSFT and SEBL were reported on In Play last Wednesday.
S&P futures vs fair value: +22.5. Nasdaq futures vs fair value: +34.0. U.S. equity market is ready to fly at the open as the morning tone is decidedly bullish... Contributing to the positive bias is the fact that several blue chip companies, including GM, FNM, C, and JNJ, have posted better than expected quarterly earnings... Also, there is an expectation the recent rally will be helped along by additional short-covering activity and some asset allocation trades (10-yr note -44/32 at 3.95%)
A Agilent downgraded at Solly (11.01) Salomon Smith Barney downgrades to In-Line from Outperform and cuts price target to $13 from $22; sees no short-term catalyst and thinks forward consensus expectations are a bit too high; raises FY02 est to ($0.93) from ($0.96) and cuts FY03 to $0.13 from $0.41 (FY03 is well below consensus of $0.19).
JNJ Johnson & Johnson beats by a penny (57.83) Reports Q3 (Sep) earnings of $0.60 per share, $0.01 better than the Multex consensus of $0.59; revenues rose 12.7% year/year to $9.08 bln vs the $8.98 bln consensus.
AOL AOL Time Warner upgraded at SoundView (11.32) -- Update -- SoundView upgrades to OUTPERFORM from Neutral; says Time Warner assets protect downside, and company is reducing risk at the online unit; this call obviously paints a more optimistic picture than today's FT article (see 8:09 comment).
GM General Motors guidance (33.26) -- Update -- Company sees FY02 EPS of $6.35; though above the $6.28 Multex consensus, this is entirely a function of the Q3 upside - Q4 earnings are actually seen at $1.40 vs a consensus of $1.43. All GM numbers include Hughes (GMH).
08:09 ET AOL AOL Time Warner: online division to see further drop in revs - FT (11.32) The Financial Times reports that execs at the America Online division of AOL are expecting a further fall in revs from advertising and electronic commerce on top of a near 40% projected drop this year; new mgmt team at AOL has concluded that the ad and e-commerce revs which were the source of much of the division's growth during the internet boom are unlikely to recover in the foreseeable future.
08:09 ET S&P futures vs fair value: +19.4. Nasdaq futures vs fair value: +26.0. Equity market poised for a sharply higher open as the futures market is in rally-mode following yesterday's resilient showing, the big surge in foreign indices, and better than expected earnings from a number of companies, particularly in the banking sector
GM General Motors beats estimates. (33.26) Reports Q3 EPS of $1.20 vs the Multex consensus of $0.99.
7:54AM Sun Microsystems may announce layoffs, relevance an issue - Merrill Lynch (SUNW) 2.81: Merrill Lynch believes that SUNW could announce layoffs this qtr of up to 8k people, or 20% of total employment of 39k; larger than expected layoff could lower co's breakeven point but could also reflect or cause a rev shortfall in firm's model; believes the real question facing SUNW is not viability but relevance due to the co's dependence on proprietary technology, and thinks that SUNW risks "becoming the Apple of corporate computing - cool but less relevant".
7:48AM Intel gross margin looks "shaky" in Q4 - Merrill Lynch (INTC) 15.10: Merrill Lynch says that their gross margin est for Q4 looks "shaky" given checks that seem to confirm their belief that the co is cutting production in an effort to reduce inventory; reiterates Neutral rating, saying they'd like to see a more attractive valuation and evidence that margins are moving in the right direction again before they become more positive on the stock.
7:48AM Earnings reports : Some notable reports: FITB in line, outlook for 2003 is "very positive"; FRX beats by three cents, comfortable that second half of FY earnings will be up 50% year/year; PII beats by a penny and narrows FY02 guidance to $4.35-4.40 from $4.30-4.40; PNR in line but cuts FY02 estimate to $2.60-2.65 from $2.80-2.90; STT beats by a penny.
7:40AM Scientific-Atlanta upped to Neutral at Merrill Lynch on valuation (SFA) 13.45:
7:32AM S&P futures vs fair value: +13.2. Nasdaq futures vs fair value: +22.0. Major story of the morning is the significant pullback in treasuries as international equities post sizable gains and futures point to a meaningfully higher open in U.S. stocks. The 10-yr is off 26/32 to a 3.885% yield. Some thought that the market's strength yesterday (albeit on thin volume) in the face of a presumed al Qaeda connection to the Bali bombing is a testament to near term resilience in equities.
7:32AM Bank of America beats by four cents (BAC) 60.71: Reports Q3 (Sep) earnings of $1.45 per share, $0.04 better than the Multex consensus of $1.41; revenues fell 0.4% year/year to $8.69 bln vs the $8.86 bln consensus; says it was encouraged by reduction of net charge-offs, reflecting improved credit quality in its middle market business.
7:29AM Microsoft: comments from Goldman's Sherlund (MSFT) 49.29: Goldman Sachs analyst Rick Sherlund says that MSFT will meet or slightly exceed his estimates of $7.07 bln in revenus and $0.42 EPS (Multex: $7.12 bln and $0.42); expects strength in licensing but weakness in PC demand.
7:22AM Fannie Mae beats by $0.05 (FNM) 66.48: Reports Q3 earnings of $1.62 per share, $0.05 better than the Multex consensus. Revs rose 0.5% to $2.99 bln vs the $2.77 bln consensus. FNM notes that Q3 credit losses fell to an 18-year low.
7:12AM Philip Morris upgraded by Goldman (MO) 38.29: Goldman Sachs upgrades to RECOMMENDED LIST from Mkt Outperform; cites valuation after 20% pullback, belief that Florida court will dismantle Engle class action case in 6-9 months, belief that concern over US cigarette fundamentals will abate in next 6-12 months.
7:10AM L-3 Communications beats by a penny (LLL) 49.37: Reports Q3 (Sep) earnings of $0.62 per share, $0.01 better than the Multex consensus of $0.61; revenues rose 70.4% year/year to $1.05 bln vs the $1.04 bln consensus.
7:04AM Agere Systems teams with Infineon on wireless networking (AGR.A) 0.82: Agere and Infineon (IFX 6.64) announce an alliance to develop 802.11 wireless networking gear; AGR.A will contribute controllers, IFX will contribute chips (TXN and ISIL currently produce 802.11 chips).
6:53AM Citigroup beats by a penny (C) 30.31: Posts Q3 core net income of $0.74 a share, $0.01 better than the Multex consensus. Including Travelers results, EPS rose to $0.76.
finance.yahoo.com^SOXX+A+AGRa+ALTR+AMAT+AMD+BAC+BRCM+C+FITB+FNM+FRX+GM+IFX+INTC+ISIL+JNJ+KLAC+LLL+LLTC+LSCC+LSI+MO+MOT+MSFT+MU+MXIM+NSM+NVLS+PII+SEBL+SUNW+TER+TXN+XLNX+^VIX+^IXIC+^SPX&d=t
Cary, I posted the MO upgrade to help show why the market was rising. I am certainly no fan of smoking.
RtS |
