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Charles Schwab & Co., Inc.
Email Alert Midday Market View(TM) for Wednesday, January 2, 2002 as of 12:30PM EST Information provided by Schwab Center for Investment Research and Bridge U.S. INDICES (12:30 p.m. EST) ---------------------------------- Market Value Change DJIA 9,975.01 - 46.49 Nasdaq Comp. 1,940.70 - 9.70 S&P 500 1,148.08 - 12.94 ---------------------------------- NYSE Advancing Issues 1,151 NYSE Declining Issues 1,882 NYSE Trading Volume 503 mln NASDAQ Advancing Issues 1,465 NASDAQ Declining Issues 1,941 NASDAQ Trading Volume 689 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 1.83% n/a 5-year note 4.44% - 16/32 10-year note 5.12% - 21/32 30-year bond 5.52% - 21/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ STOCKS SUFFER NEW YEAR'S HANGOVER Despite a better-than-expected Manufacturing Institute of Supply Management's (ISM) Report on Business, which reflected improving conditions in the manufacturing sector, stocks are trending lower at midday. Online stocks, including EBay Inc. (EBAY,65,f1&f4) and AOL Time Warner (AOL,31,f2), are lower following analyst downgrades while chip stocks are advancing on the heels of an upbeat Semiconductor Industry Association report. Memory chip manufacturer Micron Technology (MU,33,f2) is higher following news that a DRAM rival raised prices by 30%. Treasuries are lower following the ISM data and European bourses are lower late in the day. As of 11:52 a.m. EST, the Dow Jones Industrial Average is down 0.4%, the Nasdaq Composite Index is lower 0.3% and the S&P 500 Index is down 0.5%. Energy-related stocks are among the worst performers while computer storage, networking, and semiconductor shares are leading the advancers. Chip stocks are higher following a Semiconductor Industry Association (SIA) report that global sales of semiconductors rose 1.6% in November to $10.6 billion on the heels of October's 2.5% increase to $10.44 billion. SIA also indicated the industry is on pace to realize 4.7% growth in 4Q sequential sales. Shares of Micron Technology are higher after South Korea's Hynix Semiconductor (HXSCF,0.80) raised the price of its memory chips by 30%, its third increase in a month after two previous 20% increases in December, suggesting an improving pricing environment for memory chip makers. Shares of Schering-Plough Corp. (SGP,35,f2) and Merck & Co. (MRK,58,f2) are lower after the drug manufacturers reported that their combined allergy drug didn't prove as effective as hoped in late-stage clinical trials. The drug, which borrows from the chemical make-up of both Schering's Claritin and Merck's Singulair products, "did not demonstrate a statistically significant improvement in the treatment of seasonal allergic rhinitis compared to each product administered separately." Shares of AOL Time Warner are lower after analysts lowered their revenue and earnings forecasts due to continued advertising doldrums, even as the Internet and media giant reported that member retail online purchases rose 67% to over $33 billion in 2001 from the prior year. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds are under pressure following this morning's release of the Institute for Supply Management's manufacturing index, which rose to 48.2 in December from November's 44.5, better than 46.0 forecast per Dow Jones Newswires. A reading below 50 reflects contraction in the sector while a reading above 42.7 generally indicates expansion in the overall economy, according to ISM. The new orders index rose to 54.9 from November's 48.8 and the employment index rose to 40.5 from 35.7. The prices component rose to 34.7 from 31.6. While still reflecting contraction, this latest ISM manufacturing index suggests an improving outlook for the manufacturing sector, rising for two consecutive months. ---------------------------------------------------------------- WORLD MARKETS European markets continue to trade lower late in the session despite the euro-zone manufacturing Purchasing Managers' Index's rise to 44.1 in December from November's 43.6, reflecting decelerating contraction in the sector. The Bloomberg European 500 index was down 1.5% as of 11:52 a.m. EST, paced by declines in energy stocks. Chip shares were higher, led by Infineon Technologies (IFX,22) following the Hynix Semiconductor news, suggesting that the sector may be stabilizing. The euro is higher against the dollar as concerns about a rough transition to the new currency in the euro-region abated. William Johnson, Market Analyst ================================================================ LOGIN to access your account: https://investing.schwab.com/trading/start ---------------------------------------------------------------- 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 ---------------------------------------------------------------- Notice: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel. (0801-11478) Information provided by Bridge Information Systems. Copyright 2001 Bridge Information Systems. Charles Schwab & Co., Inc. ("Schwab") is a member of the NYSE. Schwab Capital Markets L.P. is a member of the NASD and SIPC. Schwab Capital Markets L.P. is also a subsidiary of The Charles Schwab Corporation and is a market maker in approximately 5000 securities. Schwab Center for Investment Research ("SCIR") is part of Charles Schwab & Co., Inc. The information contained herein is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. Schwab does not assess the suitability or the potential value of any particular investment. All expressions of opinions are subject to change without notice. The Charles Schwab Corporation, Schwab, Schwab Capital Markets L.P. and its officers, directors, employees, consultants and/or members of their families may have a position in, and may from time to time, purchase or sell any of the mentioned or related securities including derivatives in such securities. At any given time, Schwab specialists, or Schwab Capital Markets L.P. market makers, may have an inventory position, either "long" or "short" in any security mentioned in this report as a result of their specialist/market making functions, respectively. (C)2001 Charles Schwab & Co., Inc. F1 Schwab Capital Markets L.P. makes a market in this security. F2 Schwab is a specialist in this security. F3 Schwab has managed or co-managed a public offering in this security within the last three years. F4 An employee of Schwab is a Director of this company. F5 An analyst covering this stock has an investment position. This service is for personal use only. Commercial use or redistribution in any form, print or electronic, is prohibited. Distribution by Quris, Inc.
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