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Strategies & Market Trends : the Women of SI -- Ignore unavailable to you. Want to Upgrade?

To: Rainy_Day_Woman who wrote (712)	4/12/1999 8:54:00 AM
From: Rainy_Day_Woman	Read Replies (1) \| Respond to of 1691

heads up !!! Wall St. seen opening sharply lower on Compaq woes NEW YORK, April 12 (Reuters) - U.S. stocks are expected to open sharply lower on Monday, pressured by Compaq Computer Corp.'s (NYSE:CPQ - news) disappointing earnings forecast. ''When you price for perfection you can't make any mistakes,'' said Larry Wachtel, market analyst at Prudential Securities. He sees the Compaq news sparking an early sell-offof as much as 110 points in the Dow industrials. Compaq, the world's No. 1 personal computer maker, said late Friday it expects first quarter earnings of about $0.15 a share, well below Wall Street expectations of $0.31. At 0730 EDT/1130 GMT, June S&P 500 futures were down 20.20 points at 1337.00. Compaq shares were trading at 24 on the Instinet, down from 30-15/16 at Friday's stock market close. Last week the Dow Jones industrial average rose 341.33 points, or 3.4 percent, closing Friday at 10,173.84, just below Thursday's record close of 10,197.70. The Nasdaq gained nearly 100 points last week, or 4 percent, closing at a new high of 2,593.05 on Friday. The Standard & Poor's 500 Index, a broader market gauge, also closed at a record high Friday, gaining 54.63 points on the week to 1,348.35. ''The bears are going to come out of the woodwork today,'' said Peter Cardillo, director of research at Westfalia Investments. ''Compaq is upsetting the apple cart and the news is going to take us down under the 10,000 level on the Dow.'' The Compaq news is seen creating even more volatility than usual because of ''double witching'' expirations on Friday. ''Compaq's announcement complicates this week's trading because we have options expirations on Friday,'' said Cardillo. ''I'm looking for a very volatile day. That will make people nervous and that will spread to other areas of the market.'' But he does not view the Compaq news as the beginning of a major market correction and said he hoped prices would stabilize later in the day. Monday is the first day of the first-quarter earnings reporting season.