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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Kenya AA who wrote (50622)	3/1/1999 9:36:00 AM
From: Elwood P. Dowd	Respond to of 97611

DLJ's Intel Downgrade Should Spur Early Pressure By Justin Lahart Senior Writer 3/1/99 9:24 AM ET Stocks look weak on the open, but assigning a direction to where the market is heading this morning will have to wait until the National Association of Purchasing Management releases its Purchasing Managers Index at 10 a.m. EST. The NAPM showed renewed strength in January, and with the resurgence of manufacturing, economists expect it came in strong in February as well. The question is how strong. With their recent selloffs, the bond and stock markets have certainly discounted at least moderately robust data. Economists expect that the NAPM will hold on to January's gains, coming in at 49.4. Even if the NAPM came in surprisingly weak, it might not be enough to save tech stocks. This morning, Donaldson Lufkin & Jenrette analyst Charles Boucher lowered his rating on Intel (INTC:Nasdaq) to market perform from buy. Boucher also cut his 1999 earnings estimate to $4.50 from $4.65, his 2000 estimate to $5.30 from $5.45 and his target price to 160 from 175. "The numbers that DLJ cut to are not way below the Street," said one trader. Still, said the trader, the downgrade was enough to put pressure on the market in techs. "It has a negative tone, which is probably all we need to start things lower today. Things were definitely for sale on Friday." At 9 a.m., the S&P 500 futures were off 1.3, more than 6 below fair value and indicating a negative open. Personal income and consumption figures for January were a little less moderate than economists had expected, and that was putting slight pressure on the Treasury market. The 30-year was off 11/32 to 94 27/32, lifting the yield to 5.58%. Japanese stocks lost ground, hurt by jitters over corporate profits and continued pressure by firms unwinding cross shareholdings ahead of the end of the fiscal year on March 31. The Nikkei dropped 145.79, or 1%, to 14,221.75. Hong Kong's stock market kept climbing on the back of hefty gains in HSBC. HSBC said last week that it will seek listing in New York by year-end. Because its comparative valuation is much lower than its U.S. counterparts, HSBC has generated a lot of active buying by investors who expect the Wall Street listing to raise its multiple. The Hang Seng climbed 161.97, or 1.6%, to 10,020.46. Europe's major indices were all lower. In Frankfurt, the Dax was down 74.05, or 1.5%, to 4837.76. In Paris, the CAC was off 33.92 to 4059.02. In London, the FTSE was down 53.7 to 6121.4. Monday's Wake-Up Watchlist By Brian Louis Staff Reporter State and federal antitrust enforcers would seek to break Microsoft's (MSFT:Nasdaq) control over personal-computer makers if the government prevails in the software giant's antitrust trial, The Wall Street Journal reported. The Journal said the effort could shift the balance of power in the PC industry, giving manufacturers more freedom to offer software and online services they develop or license from Microsoft's rivals. The newspaper said that while the case could go either way and any ruling is sure to be appealed, evidence presented in the four-month-long trial showed that even PC makers like Compaq (CPQ:NYSE) and Gateway (GTW:NYSE) faced retribution from Mister Softee if they offered software or other features that didn't fit with Microsoft's plans.