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Stocks slump again
NEW YORK (CBS.MW) -- Earnings concerns and last week's inability of the Dow Jones Industrial Average to close above the 10,000 mark slapped a lid on the U.S. stock market Monday. The Dow Jones Industrial Average declined 13.04 points, or 0.1 percent, to 9,890.51. The Nasdaq Composite fell 25.35 points, or 1.0 percent, to 2,395.92. Although some participants believe Dow 10K is nothing more than a number, others recall that the psychological barriers of 100 and 1,000 didn't come down easily. "It is interesting to note that the Dow took a year to break the 4,000 level, eight weeks to break 5,000, four weeks to break 6,000, 13 weeks to break 7,000, and 24 weeks to break both 8,000 and 9,000," said Ralph Acampora, director of technical research at Prudential Securities, in a research brief. Last week's botched attempts at closing above 10,000 only served to fuel the concerns of market bears that happy days aren't here again just yet. "The market is tired, soggy, and has no enthusiasm," said Stanley Nabi, chief investment officer at Donaldson Lufkin & Jenrette Asset Management Co.
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Comcast to buy cable TV's MediaOne . . .
PHILADELPHIA (CBS.MW) -- Comcast is buying rival cable giant MediaOne Group in a stock deal valued at an estimated $48.7 billion, the companies said Monday. With a combined 11 million customers, the companies said they plan to establish themselves as the world's leading provider of broadband, or high-speed, communications. Under the deal, shareholders of Englewood, Colo.-based MediaOne (UMG) will receive 1.1 Comcast (CMCSA) class A special common shares for each MediaOne share. The offer values MediaOne at $80.16 a share, a 32 percent premium on the stock's Friday closing price of $60.75. Shares of MediaOne jumped 5 3/4 to 66 1/2 on Monday while Comcast's stock fell 6 5/8 to 63 1/2.
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Microsoft to begin settlement talks . . .
WASHINGTON(CBS.MW) -- Microsoft shares soared close to an all-time high Monday morning after reports circulated that it may try to settle government charges that it illegally bullied rivals. The Wall Street Journal reported that Microsoft (MSFT) wants to work on a settlement, although the two sides are far apart on issues. "We have not received any settlement proposal from Microsoft," said Assistant Attorney General Joel I. Klein in a statement. Klein said the government "remains open to a settlement that fully protects consumers and assures that similar antitrust violations do not occur in the future." The historic antitrust case, brought by the Justice Department and 19 states, is scheduled to resume next month, but could be delayed if talks are in progress.
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Treasurys haunted by supply . . .
NEW YORK (CBS.MW) -- Treasury prices continued to sag under the weight of pending supply Monday, and players concede a sloppy week may be in the offing. Two obstacles loom: The first is in the form of a massive amount of corporate bonds from AT&T while the second is the monthly 2-year note auction. While the latter typically doesn't represent a problem, market participants are a tad more cautious this time around in light of the unsatisfactory reception at last month's offering. Meanwhile, the AT&T (T) deal is so huge, players warned, that it may snap up all the capital flowing into the fixed-income market. The expected size is pegged at $11.5 billion, with the launch to take place Monday and pricing slated for Tuesday. The 30-year bellwether bond (TRE=Z3-GB) fell 1/8 to yield ($TYX) 5.555 percent. The 10-year (TRE=Z0-GB) lost 1/32 to yield ($TNX) 5.19 percent
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Vivendi to buy U.S. Filter for $6 billion . . .
NEW YORK (CBS.MW) --France's Vivendi SA is close to an agreement to acquire U.S. Filter Corp., the U.S.'s biggest water company, in a deal valued at about $6 billion. According to the Wall Street Journal, specific terms of Vivendi's bid couldn't be obtained. However, an announcement of the agreement could be made as early as Monday, and the deal is likely to be for cash. A Vivendi spokesman declined to comment. U.S. Filter couldn't immediately be reached for comment.
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Housing, factory data due . . .
With a light calendar of economic data in the coming week, the Federal Open Market Committee has just about all the numbers it's going to have when it meets on March 30 to talk about interest rates. Most analysts who follow the Fed don't think the FOMC will change monetary policy at the meeting. In several appearances in the past month, Fed Chairman Alan Greenspan has made it clear that the Fed doesn't see any upsurge in inflation that would force it to raise rates. "Why fiddle with perfection?" says Robert Dederick, chief economist at Northern Trust. "Keep your hands off because all you can do is make enemies."
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Corporate backers going to Final Four . . .
SAN FRANCISCO (CBSMW) – This week, members of an elite group of Fortune 500 companies share a major sports connection – "front-row" exposure at one of the nation's most popular sports events, the NCAA men's basketball tournament. The NCAA's corporate partners range from American Express, GTE and Compaq to General Motors, Pepsi, Sears, and Kentucky Fried Chicken, which is a unit of the Tricon Restaurant Group. The exclusive right to associate their names with college sports programs and to tap into the huge audience for collegiate athletics on radio, television and computer screens across the country made the partnership program a slam-dunk choice. "There is a feeling around NCAA sports and amateur athletics that it is still very competitive, young and fresh," explained Steve Huey, vice president of marketing communications for Compaq.
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OPEC meets to cut production . . .
VIENNA, Austria (AP) -- Iraq Oil Minister Amer Mohammed Rasheed minced no words in summing up the goal of OPEC ministers meeting here this week. "We are here ... to save the situation of the collapsing prices of oil. That is our main objective," Rasheed said Sunday. OPEC ministers expressed hope that oil-exporting nations would abide by production cuts designed to slash total output by more than 2 million barrels a day. The new quotas, which are to begin April 1, would remain in effect for a full year, Venezuelan Oil Minister Ali Rodriguez said ahead of Tuesday's meeting of the Organization of the Petroleum Exporting Countries. The meeting is expected to result in formal approval of production cuts agreed upon earlier this month.
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Around the Web . . .
In an online Stock Analyst's Journal column Monday, Morningstar's Pat Dorsey lays into Henry Blodget, the former CIBC Oppenheimer Net-stock analyst who created a run on Amazon.com shares (AMZN) in December when he put a $400 12-month target on the stock. The stock quickly -- to say the least (it happened within a week) -- surged to and then through that target. Now, to Dorsey's annoyance, Blodget is saying the key risk associated with Amazon is simply not owning it. Writes Dorsey: "A bold thesis, to say the least, and I have to say that I'd be much more inclined to believe it if it hadn't been put forth in a piece that reads more like a love note than a research report." Want to see Dorsey really go ballistic? Have a look at his response when Blodget, who moved to Merrill Lynch this year, goes on to recommend the online retailer "for strong-stomached investors with ... faith [in Amazon similar to his own
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