DAILY WRAP-UP
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Sprinting technology stocks underpinned a strong rally on Wall Street
Wednesday. The chip stocks set the pace for a rally that sent blue chips
higher as well. Volume levels were lower again, as the market lacked a real
spur that would send it in one direction or another. Jitters over a
potential war with Iraq and the overhanging threat of terror attacks faded
slightly.
The Dow Jones Industrial Average put on 148.23 points or 1.75% to 8,623.01,
while the Nasdaq composite raced 44.84 points or 3.26% to 1,419.35. The S&P
500 rallied 17.41 points or 1.94% to 914.15. Volume on the NYSE tallied
1.495 billion shares, and the Nasdaq saw 1.766 billion shares trading hands.
Brian Finnerty, managing director at Melhado Flynn & Associates said:
"There's a lot of money out there that wants to be put to work and you're
seeing that today. I think it's very healthy."
Better sales figures and profits at Applied Micro Devices (NYSE: AMD)
sparked interest in tech stocks. The semiconductor maker said its improved
fortunes resulted from increased demand for consumer products like DVD
players and digital cameras that use its chips. However, AMD's shares
closed below the breakeven line, losing 0.54% to $5.55 on the day. Intel
(NASDAQ: INTC) ploughed ahead with a gain of 5.51% to $19.15.
Delta Airlines (NYSE: DAL) said it would launch a discount airline next
year to compete with successful low-cost carriers such as JetBlue (NASDAQ:
JBLU) and Southwest (NYSE: LUV). Delta shares dipped 6.09% to $10.49.
JetBlu fell 1.67% to $36.00, and Southwest declined 0.2% to $15.00.
A probe of alleged price fixing sent shares of Phelps Doge (NYSE: PD)
tumbling 7.45% to $26.72. Authorities with the European Union are reviewing
documentation from its Columbian Chemicals plants in Europe, and
authorities from the U.S. have begun an investigation at the unit's
headquarters in Marietta, Georgia.
Analyst opinion boosted Citigroup (NYSE: C), J.P. Morgan Chase (NYSE: JPM)
and Biogen (NASDAQ: BGEN).
At UBS Warburg, Citigroup stock was maintained a "strong buy" with a price
target of $50. The financial giant advanced 3.7% to $37.79. Meantime, J.P.
Morgan was ahead 8.06% to $23.72. A principle at the Second Curve Capital
hedge fund suggested the bank is set for a recovery next year.
On the basis of better-than-expected sales of its multiple sclerosis drug,
Avonex, Biogen shares were upgraded to "overweight" from
"equal-weight/positive" at Lehman Brothers. The stock rose 9.82% to $43.49.
Amgen (NASDAQ: AMGN), the largest biotech firm, added 2.34% to $46.80.
An SEC investigation cost Interpublic (NYSE: IPG) 1.69% to $13.97. The
advertising firm said its $181 million profit restatement is being examined
for clues about improper booking of expenses during the years 1997 to 2001.
The Commerce Department reported new home starts crumbled about 11% in
October. The data said that the industry is on pace to build 1.6 million
new homes this year. The October slide was the largest decline in the
sector in more than eight years.
In small cap trading, the Russell 2000 gained 9.02 points or 388.59, and
the S&P600 index jumped 3.92 points or 2.03% to 197.46.
Some of the small cap stocks making big moves included Wilsons The Leather
Experts (NASDAQ: WLSN). The stock bounced 41.94% to $6.16 on volume of
825,300 after the company beat Street estimates for its third quarter. The
firm said it would get out of the travel products business, and shutter its
135 travel stores.
Pumatech (NASDAQ: PUMA) rocketed 86.75% to $1.55 on volume of 8,615,600.
The company announced that its Intellisync software would be used on the
Microsoft (NASDAQ: MSFT) MSN network to synchronize the MSN calendar and
Address Book.
In commodities trading on the New York Mercantile Exchange, January crude
oil futures advanced $0.59 to $26.09. December natural gas fell a penny to
$4.25. December gold futures retracted $1.20 to $317.60.
In Canadian markets big gains in technology, financial and energy stocks
powered gains on the benchmark stock index.
The TSX composite rallied 69.49 points or 1.08% to 6,493.14, while the
small cap Venture index fell 2.46 points or 0.26% to 942.33.
In the technology group Cognicase (TSX: T.COG) reported sales improved 32%
in its fourth quarter, but said that accounting changes affected its loss
figure. The information technology products and services firm shed 9% to
$2.73 after posting a loss before goodwill impairment and amortization of
$11.7 million or $0.14 a share. Shares of Celestica (TSX: T.CLS) raced
5.91% higher to $25.10. Sitting atop the most actives list, Nortel Networks
(TSX: T.NT) surged 5.48% higher to $2.31.
Bank shares were sharply higher. The Canadian Imperial Bank of Commerce
(TSX: T.CM) soared 2.54% to $43.65. Toronto Dominion (TSX: T.TD) shares
shook off the negative sentiment plaguing the stock over the past week, and
posted an advance of 3.45% to $31.25. Insurers were also higher. Manulife
Financial (TSX: T.MFC) jumped 2.61% to $37.30.
EnCana (TSX: T.ECA) announced it had sold two pipelines as part of
continuing efforts by the exploration and production company to divest
non-core assets. The deals are worth $1.6 billion. EnCana is selling its
Express oil pipeline to BC Gas and two Ontario pension funds for $1.17
billion. Separately, the energy giant will sell its 70% interest in the
Cold Lake Pipeline System to Inter Pipeline Fund for $425 million in cash.
EnCana shares jumped 3.2% to $44.85. Suncor Energy (TSX: T.SU) pumped up
3.46% to $24.85.
Gains on the broader market were held in check by losses in the gold group.
Placer Dome (TSX: T.PDG) announced that it had restarted production at its
Getchell mine in Nevada. The company said the property could produce up to
350,000 ounces yearly by 2004. The company's shares reversed early losses
to post a gain of 0.92% to $15.44. Meridian Gold (TSX: T.MNG) tumbled 9.62%
to $23.30 on higher than average volume. Barrick Gold (TSX: T.ABX) bucked
the selling trend with a gain of 0.98% to $24.74.
In health care news, Hemosol (TSX: T.HML) shares rocketed 45.95% to $2.70
on news that the U.S. FDA cleared the company to begin Phase II trials for
its Hemolink substitute blood product. The trials concern patients
undergoing orthopedic surgery. The biotech Stressgen (TSX: T.SSB) continued
its stellar performance with a gain of 17.59% to $2.34.
In earnings news, CFM Corp (TSX: T.CFM) reported higher profits that missed
estimates. The maker of stoves, fireplaces, and barbeques posted earnings
of $14.6 million or $0.36 per share, as compared with earnings of $13.1
million or $0.34 a share in the year ago quarter. Analysts had expected an
EPS figure of $0.39 a share. The stock gave back 0.87% to $11.35.
The Canadian dollar was worth US$0.6309.
TODAY'S HEADLINES
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HEWLETT-PACKARD 4TH-QTR PROFIT QUADRUPLES; SALES RISE
Hewlett-Packard Co.'s (NYSE: HPQ) fourth-quarter profit rose almost
fourfold as the world's second-biggest computer maker reduced costs and cut
jobs to absorb Compaq Computer Corp., acquired in May.
quote.bloomberg.com
HOUSING STARTS SUFFER MAJOR DECLINE
Housing construction lost momentum in October, plunging by 11.4%, the
biggest drop since 1994.
biz.yahoo.com
DELTA TO TACKLE DISCOUNT COMPETITORS
Delta Air Lines (NYSE: DAL) will launch a low-cost carrier to go wing to
wing against discount airlines that have drawn both business and leisure
travelers amid an industry shift in air transportation, the carrier said
Wednesday.
cbs.marketwatch.com
QWEST OFFERS TO EXCHANGE $12.9BN OF DEBT
Qwest Communications (NYSE :Q) on Wednesday announced an offer to exchange
$12.9bn of debt securities from its Qwest Capital Funding subisidiary in an
effort by the US telecommunications carrier to avoid a cash crunch and
bankruptcy proceedings.
news.ft.com
NATIONAL CENTURY ENGAGED IN 'FINANCIAL TRICKERY'
Bank One Corp. (NYSE: ONE), in charge of keeping track of some of National
Century Financial Enterprises Inc.'s $3.3 billion of bonds, accused the
bankrupt hospital-financing provider of using "systematic financial
trickery" in its books and records.
quote.bloomberg.com
TODAY'S HIGHLIGHTS
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Market Summary At 5:28:12 P.M. ET
---------------------------------------------------------
Symbol Close Change Change(%) Market Name
.DJI 8623.01 148.23 1.75 DOW JONES INDUSTRIAL
NYA 484.43 7.32 1.53 NYSE COMPOSITE
COMP 1419.35 44.84 3.26 NASDAQ COMPOSITE
XAX 823.66 4.61 0.56 AMEX COMPOSITE INDEX
SPX 914.15 17.41 1.94 S&P 500
SML 197.46 3.92 2.03 S&P 600 SMALLCAP
RUT 388.59 9.02 2.38 RUSSELL 2000
NDI 181.54 2.61 1.46 INDIVIDUAL INVESTORS 500
IV.JX 942.33 -2.46 -0.26 S&P/TSX VENTURE
COMPOSITE INDEX
IT.TSXCI 6493.14 69.49 1.08 S&P/TSX COMPOSITE
Small Cap Most Active Stocks At 5:28:12 P.M. ET
(Market Capitalization Between $10,000,000 and $750,000,000)
************************************
NASDAQ / OTC
*********************
Symbol Volume Close Change Company Name
WCOEQ 155843400 0.20 -0.07 WorldCom Group
VTSS 22052700 2.27 0.34 Vitesse Semiconductor
XOXOQ 19457600 0.12 -0.03 XO Communications Inc.
SBLU 15603500 0.79 -0.05 SONICblue Incorporated
ITWO 14069800 1.43 0.02 i2 Technologies Inc.
AMEX
*********************
Symbol Volume Close Change Company Name
DRS 885400 31.30 -1.95 DRS Technologies Inc.
BGO 763700 1.00 0.00 Bema Gold Corporation
ECO 693800 0.89 0.02 Echo Bay Mines Ltd.
EUO 645200 0.18 -0.01 Eurotech Ltd.
ANH 529900 11.97 -0.03 Anworth Mortgage Asset
TSX
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Symbol Volume Close Change Company Name
T.MGX 18484100 0.16 -0.25 Mosaic Group Inc.
T.TIW 2364200 0.51 0.08 Telesystem International Wireless Inc.
T.BWR 2106700 0.09 -0.04 Breakwater Resources Ltd.
T.AE.UN 2028100 3.79 -0.11 Acclaim Energy Trust
T.APQ 1912400 0.07 -0.01 Asia Pacific Resources Ltd.
TSX-V
*********************
Symbol Volume Close Change Company Name
V.QGX 436700 1.35 0.09 QGX Ltd.
V.CZZ 359900 2.72 -0.12 Canadian Royalties Inc.
V.LOV 222500 0.65 0.01 Louvem Mines Inc.
V.DEI 213000 0.75 0.04 Dorchester Energy Inc.
V.KRT 208000 1.00 0.00 Kensington Resources Ltd.
Small Cap Top Percent Gainers At 5:28:12 P.M. ET
(Market Capitalization Between $10,000,000 and $750,000,000)
************************************
NASDAQ / OTC
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Symbol Volume Close Change %Gain Company Name
ARVT 200 0.08 0.04 100.00 Aries Ventures Inc.
PUMA 9450900 1.55 0.72 86.75 Pumatech Inc.
VSNT 113400 0.95 0.43 82.69 Versant Corporation
COII 268000 0.45 0.19 73.08 Computerized Thermal Imaging
Inc.
EMKR 161400 3.10 0.97 45.54 EMCORE Corporation
AMEX
*********************
Symbol Volume Close Change %Gain Company Name
XLA 210300 1.05 0.21 25.00 Xcelera Inc.
CFW 51100 3.86 0.36 10.29 CyberGuard Corporation
MSN 306500 3.71 0.34 10.09 Emerson Radio Corp.
GEB 34000 0.35 0.03 9.38 Genetronics Biomedical Co
DAR 2000 1.20 0.10 9.09 Darling International Inc
TSX
*********************
Symbol Volume Close Change %Gain Company Name
T.HML 1262000 2.70 0.85 45.95 Hemosol Inc.
T.PBC 106600 2.80 0.70 33.33 Pebercan Inc.
T.TNP.U 471000 0.13 0.03 30.00 TransAtlantic Petroleum Corp.
T.GLE 682300 2.69 0.53 24.54 Global Thermoelectric Inc.
T.CUR 134300 0.46 0.09 24.32 DiagnoCure Inc.
TSX-V
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Symbol Volume Close Change %Gain Company Name
V.MDR 75500 0.63 0.13 26.00 Mansfield Minerals Inc.
V.CQV 99000 0.15 0.03 25.00 Canadian Imperial Venture Corp.
V.TYK 17000 0.50 0.07 16.28 Tanganyika Oil Company Ltd.
V.TTH 8500 0.30 0.04 15.38 Transition Therapeutics Inc.
V.OYL.U 17500 0.29 0.03 11.54 CGX Energy Inc.
Small Cap Top Percent Losers At 5:28:12 P.M. ET
(Market Capitalization Between $10,000,000 and $750,000,000)
************************************
NASDAQ / OTC
*********************
Symbol Volume Close Change %Loss Company Name
WCOEQ 155843400 0.20 -0.07 -25.93 WorldCom Group
BHMSQ 804800 0.23 -0.08 -25.81 Bethlehem Steel Corp.
GNNU 39100 0.54 -0.17 -23.94 Global Network Inc.
GIGX 500 1.16 -0.34 -22.67 Giga Information Group
NETME 27800 1.28 -0.37 -22.42 NetManage Inc.
AMEX
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Symbol Volume Close Change %Loss Company Name
MSS 101900 2.80 -0.40 -12.50 Measurement Specialties
AVR 32600 0.28 -0.04 -12.50 Avitar Inc.
ISV 9300 0.73 -0.10 -12.05 Insite Vision Inc.
SVI 33800 0.71 -0.09 -11.25 SVI Solutions Inc.
VRA 441800 0.18 -0.02 -10.00 Viragen Inc.
TSX
*********************
Symbol Volume Close Change %Loss Company Name
T.MGX 18484100 0.16 -0.25 -60.98 Mosaic Group Inc.
T.BWR 2106700 0.09 -0.04 -34.62 Breakwater Resources Ltd.
T.DMW 157300 0.30 -0.08 -21.05 DiamondWorks Ltd.
T.MOY 12000 0.50 -0.10 -16.67 Moydow Mines International
Inc.
T.NXS 596000 0.03 -0.01 -14.29 Nexus Group International
Inc.
TSX-V
*********************
Symbol Volume Close Change %Loss Company Name
V.ZED 19100 0.20 -0.05 -20.00 zed.i solutions inc.
V.EDV 10900 1.53 -0.26 -14.53 Endeavour Mining Capital Corp.
V.TCH.U 5100 1.15 -0.15 -11.54 Touchstone Resources Ltd.
V.PIH 7800 3.10 -0.40 -11.43 Pacific Insight Electronics
Corp.
V.IPR 11600 0.55 -0.07 -11.29 iPerformance Fund Inc.
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