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Charles Schwab & Co., Inc.
Email Alert Midday Market View(TM) for Tuesday, October 23, 2001 as of 1:00PM EDT Information provided by Schwab Center for Investment Research and Bridge U.S. INDICES (1:00 p.m. EDT) ---------------------------------- Market Value Change DJIA 9,335.31 - 41.72 Nasdaq Comp. 1,714.18 + 6.10 S&P 500 1,086.49 - 3.41 ---------------------------------- NYSE Advancing Issues 1,528 NYSE Declining Issues 1,400 NYSE Trading Volume 688 mln NASDAQ Advancing Issues 1,624 NASDAQ Declining Issues 1,731 NASDAQ Trading Volume 966 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 2.07% n/a 5-year note 3.83% - 1/32 10-year note 4.63% unch 30-year bond 5.37% - 1/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ STOCKS MIXED IN CHOPPY TRADING Stocks were mixed at midday following a slew of contrasting earnings reports amid a relative lack of any market moving economic data. As of 12:03 p.m. EDT, the Dow Jones Industrial Average was down 0.2%, and the Nasdaq Composite Index was 0.6% higher. The S&P 500 Index was virtually unchanged. Transport, retail and insurance stocks were among the best performers, while healthcare, phone and leisure issues were lower. Shares of Lucent Technologies (LU,6.64,f2) were lower after the struggling telecommunication equipment giant said its loss for fiscal 4Q widened to $0.27 per share, excluding $8 billion in restructuring and one-time charges, worse than the $0.23 per share loss forecast by First Call. Including the charges, Lucent's loss widened to $2.59 per share. The company cited the elimination of jobs and some of its product lines for the charges. Going forward, Lucent anticipates a sequential fall in revenue in fiscal 1Q before a rise in fiscal 2Q sales. Leading U.S. oil company and Dow component Exxon Mobil (XOM,41,f2) posted 3Q earnings, excluding items, of $0.48 per share, below the First Call consensus of $0.50 per share on a 9.5% revenue decline amid softening demand and weaker oil and natural gas prices. In a similar story, oilfield services company Schlumberger Ltd. (SLB,49,f2) reported 3Q earnings of $0.34 per share, $0.01 lower than the Street's mean forecast. Pharmaceutical titan Bristol-Myers Squibb (BMY,60,f2) posted 3Q earnings of $0.63 per share, in line with the First call consensus. Sales of the company's diabetes and blood-clotting drugs offset declining sales of its flagship cancer and anxiety medicines. Shares of MetLife (MET,27) were trading higher after the insurance and financial services company reported that it was eliminating roughly 1,900 jobs in a move to cut costs amid weakening conditions in the sector. The company also reduced its claims estimates associated with the Sept. 11 attacks to roughly $210 million from the previous forecast of $250 million-$300 million. The company expects 3Q operating profits of $0.29-$0.31 per share. In the days after the attack, analysts surveyed by First Call had dropped their 3Q EPS forecast to $0.14-$0.17 per share. In the chip sector, shares of Vitesse Semiconductor Corp. (VTSS,10.36,f1) were higher after the CEO of the communications chip manufacturer said that he believes demand should improve in 2002. Vitesse posted a fiscal pro forma 4Q loss of $0.14 per share, just below the lowered First Call consensus of a $0.13 per share loss. Meanwhile, programmable chip maker Altera Corp. (ALTR,20,f1) posted 3Q earnings of $0.05 per share, in line with the Street's mean estimate, but indicated that sales will decline again in 4Q. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds reversed course to trade slightly higher as equities retreated from earlier highs. Bonds will likely take direction from stocks absent any significant economic data or salient Fed-speak. Increasing speculation that the government will be forced to issue a larger debt supply, such as tomorrow's scheduled $19 million two-year note sale, to subsidize the future fiscal stimulus may also be pressuring Treasuries. ---------------------------------------------------------------- WORLD MARKETS European markets held on to early gains late in the day, with the Bloomberg European 500 Index up 2.57% as of 12:03 p.m. EDT amid mostly positive corporate earnings news. DaimlerChrysler AG (DCX,37,f2) posted a slimmer-than-expected 3Q loss on the heels of an aggressive cost-cutting campaign, while drug giant GlaxoSmithKline PLC (GSK,54) saw its 3Q earnings rise 20%, slightly above expectations. The dollar remained higher against the euro as traders weighed the relative lack of monetary stimulus in the euro-zone as compared to the U.S. Adding to the gloomy economic landscape, Italian business confidence fell to 84 in September from August's 96 reading, the lowest level in more than five years and well below expectations. 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, other major U.S. Securities Exchanges, and SIPC. Schwab is a specialist in various securities on the Pacific, Boston and Cincinnati Stock Exchanges and is subsidiary of The Charles Schwab Corporation, which is listed on the NYSE and trades under the symbol "SCH". 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 4,900 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. Additionally, Schwab or Schwab Capital Markets L.P. may be on the opposite side of orders executed on the floor of the Pacific, Boston and/or Cincinnati Stock Exchanges or over-the-counter market respectively, as well. Schwab (or persons related thereto) or consultants may perform or solicit investment banking or other business from any company mentioned in this report. (C)2001 Charles Schwab & Co., Inc. 1) Schwab Capital Markets L.P. makes a market in this security. 2) Schwab is a specialist in this security. 3) Schwab has managed or co-managed a public offering in this security within the last three years. 4) An employee of Schwab is a Director of this company. 5) 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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