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Charles Schwab & Co., Inc.
Midday Market View(TM) for Tuesday, May 29, 2001 as of 1:00PM EDT Information provided by Standard & Poor's ================================================================ U.S. INDICES (1:00p.m. EDT) ---------------------------------- Market Value Change DJIA 11,013.50 + 8.20 Nasdaq Comp. 2,189.40 - 61.63 S&P 500 1,269.70 - 8.19 ---------------------------------- NYSE Advancing Issues 1,404 NYSE Declining Issues 1,520 NYSE Trading Volume 520 mln NASDAQ Advancing Issues 1,281 NASDAQ Declining Issues 2,280 NASDAQ Trading Volume 852 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 1-year bill 3.66% n/a 5-year note 5.01% unch 10-year note 5.49% + 1/32 30-year bond 5.83% + 8/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ U.S. TRADING SUMMARY Technology shares continued to bear the brunt of investor scorn after a duo of technology downgrades from investment bank Goldman Sachs smacked the tech sector. The NASDAQ consolidated its initial losses at the low end of its intraday range before heading down again. Sectors under-performing read like a who's who of technology with software makers, networkers, storage and semiconductor manufacturers all under-performing. Defensive areas such as chemicals, metals and papers were outperforming. Elsewhere, the Dow continued to resist the downdraft and held in the green, though the selloff in the tech index dropped the Dow off higher levels. By midday, the Dow hovered just to the plus side of unchanged while the NASDAQ skidded 2.7% and the S&P 500 lost 0.6%. ---------------------------------------------------------------- U.S. TREASURY SUMMARY The bond moved off its highs of the session by midday in a mild bout of profit-taking. Economic data released earlier in the session supported the view that another weak employment report is coming on Friday. Not only did the bond get a boost on the anticipation of further evidence of economic weakness, but the contract benefited from the view that the door remains open for further rate cuts from the Federal Reserve. Indeed, despite profit-taking, the long bond was outperforming the shorter-dated issues, which were slightly in the red by midday. ---------------------------------------------------------------- CURRENCY SUMMARY The euro has stabilized around the 0.854 dollar per euro level after dropping sharply overnight. Ongoing concerns that rising inflation and slowing growth will hamstring the European Central Bank have pulled the euro lower in recent weeks. After strengthening overnight and this morning, the yen has settled around the 120 yen per dollar level. ---------------------------------------------------------------- MAJOR COMPANY / INDUSTRY NEWS (All prices as of 1:05 p.m. EDT) ** Oil producer Conoco (COCa: 31.70, + 0.24) announced on Tuesday that it will acquire Gulf Canada Resources Ltd. (GOU: 7.92, + 2.00) for about $4.3 billion in cash and roughly $2 billion in debt. The merger is expected to be finished by the end of the third quarter and will also include a $220 million breakup fee that Gulf Canada will be liable to pay Conoco, should the deal collapse. Conoco is acquiring Gulf Canada to expand its energy production capabilities and build its North American and Southeast Asian reserves. ** EMC Corp. (EMC: 34.11, - 2.99) announced on Tuesday that it will cut 1,100 positions, which equates to about 4% of its total work force. Further, the company will take a $0.01 charge against its current earnings as a result of the restructuring. EMC also stated that it will cut additional costs by downsizing its use of contractors and consultants along with reducing travel-related expenses. ** Florida-based LaserSight (LASE: 2.53, + 0.25) is settling its patent suit with Visx (EYE: 20.50, - 1.01). Visx agreed to license various patents for lasers used in laser eye surgery to LaserSight. LaserSight, which performs corrective laser eye surgeries, agreed to pay Visx a royalty for each procedure it performs in the U.S. A trial had been slated for June but will now be avoided. ---------------------------------------------------------------- RESEARCH SPOTLIGHTS ** Goldman Sachs upgraded shares of INCO Ltd. (N: 19.72, + 0.46) from a market performer to a market outperformer rating. ** UBS Warburg upgraded shares of Midway Games (MWY: 10.61, + 1.56) from a hold to a strong buy rating. ** Goldman Sachs upgraded shares of Lyondell Petrochemical (LYO: 16.65, + 0.24) from a market performer to a market outperformer rating. ################################################################ Log in using the links below to: Access your account: https://investing.schwab.com/trading/start?SANC=CCBodyi&NeedCASelValue=Y View your Email Alert customization options: https://investing.schwab.com/trading/start?SANC=EAMyAlerts Perform research or request a market quote: https://investing.schwab.com/trading/start?SANC=Quotes Place a trade order: https://investing.schwab.com/trading/start?SANC=TradeStock To visit Schwab's home page, use this link: http://www.schwab.com/ ----------------------------------------------------------------- To unsubscribe or modify your Email Alert customization options, log in using the link below or copy and paste it into your browser's address window: https://investing.schwab.com/trading/start?SANC=EAMyAlerts Now you can receive graphics Email Alerts in HTML format, using helpful, full-color graphics and active Web links that connect you directly to information you want. Use the link below to log in and change your email format preference: https://investing.schwab.com/trading/start?SANC=EAEditEmailAddr ---------------------------------------------------------------- Notice: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel. (1000-8752) Copyright 2001 Standard & Poor's MMS Inc. All rights reserved. Standard & Poor's MMS services are for personal use only. Commercial use or redistribution in any form, print or electronic, is prohibited. Distribution by Quris, Inc.
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