|
|
Enron Mail |
Charles Schwab & Co., Inc.
Midday Market View(TM) for Thursday, September 13, 2001 as of 1:00PM EDT Information provided by Schwab Center for Investment Research and Bridge +--------------------------------------------------------------+ + + + TUESDAY'S NATIONAL TRAGEDY + + + + Schwab provides answers to your questions about the markets + + and your money. Also, listen to a special audio message + + from Chairman Mr. Charles Schwab on the tragedy. + + + + http://q1.schwab.com/s/r?l=781 + +--------------------------------------------------------------+ ================================================================ U.S. INDICES (1:00 p.m. EDT) ---------------------------------- Market Value Change DJIA n/a n/a Nasdaq Comp. n/a n/a S&P 500 n/a n/a ---------------------------------- NYSE Advancing Issues n/a NYSE Declining Issues n/a NYSE Trading Volume n/a NASDAQ Advancing Issues n/a NASDAQ Declining Issues n/a NASDAQ Trading Volume n/a ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 3.09% n/a 5-year note 3.93% - 5/32 10-year note 4.62% - 1/32 30-year bond 5.39% + 7/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ INTERNATIONAL MARKETS HIGHER, BONDS SOAR Global markets added to earlier gains, while bonds advanced as investors flocked to the presumed safety of the U.S. Treasury market. According to a Bloomberg report, the yield on the two-year Treasury note reached a 43-year low of 2.98% in a flight to quality reaction. Meanwhile, in economic news, reports reflecting souring consumer sentiment and a weakening jobs picture had little effect as the markets remain focused on Tuesday's catastrophe. In equities news, Chuck Hill, research director at First Call, is now estimating that U.S. companies' 4Q profit may fall by as much as 10-15%, due to the potential economic reverberations resulting from Tuesday's attack. Previously, First Call forecast a decline on the order of at least 5%. Airlines, hotels, leisure stocks and retailers are expected to bear the brunt of the shortfall, if consumer confidence wanes. In fact, the International Air Transport Association has estimated that costs could run as high as $10 billion for major American and International carriers, owing to the widely-anticipated slackening demand. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY While the U.S. equity market remains closed until further notice, bonds rallied, particularly on the short-end of the curve, as investors sought the relative safety of U.S. Treasuries. Bonds were helped higher by speculation that the Fed may cut rates before the Oct. 2 Federal Open Market Committee meeting. In economic news, a preliminary release of the University of Michigan's consumer sentiment survey, conducted prior to Tuesday's attack, showed that consumer sentiment dropped sharply through Sept. 10 from the August figure. The consumer sentiment index plummeted to 83.6, down from August's 91.5 and well below the Bloomberg forecast of 91.0. The current conditions component fell to 93.5 from August's 101.2, and the future expectations component plunged to 77.2 from August's 85.2. Although the bond market, which appears to be focusing on the bigger picture, had little if any, reaction to the report, it appears that consumers may have been starting to sour on the economy, even before Tuesday's calamity. Initial jobless claims came in higher than expected, rising to 431,000 for the week of Sept. 8, according to the Labor Department. A poll per Dow Jones Newswires was looking for an increase to 405,000. The prior week's figures were revised upward to 410,000. The four-week moving average of claims rose to 411,000 and continuing claims rose to 3,345,000 suggesting a deteriorating jobs situation. ---------------------------------------------------------------- WORLD MARKETS European bourses extended gains in late-day trading, led by a partial recovery in the world's largest insurance stocks, after some of the companies, which got hammered yesterday, said that claims related to Tuesday's damage would be lower than initially forecast. Investors also sought the relative safety of defensive issues, while energy and auto stocks led the downside action. The Bloomberg European 500 Index was up 0.83% as of 11:57 a.m. EDT. The U.S. dollar fell against the euro on light volume, even as the Group of Seven nations said it was prepared to support the currency, as necessary, to mitigate a potentially worsening economic situation. However, the European Central Bank decided to keep the benchmark interest rate for the euro-zone on hold at 4.25% for the time being, following the ECB President's remarks that reducing rates further would be seen as a panic reaction to the situation at hand. Nevertheless, the major international central banks have already provided liquidity to the financial markets with yesterday's $120 billion injection into their domestic financial systems and have indicated that they will coordinate with the Fed and other major central banks to ensure smooth, ongoing market operations. The yen extended its gains against the dollar after Japan's Finance Minister said he didn't see any immediate need for taking action in the foreign exchange market, despite the previous comments coming out of the G-7. William Johnson, Market Analyst ################################################################ 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. (0801-11482) 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.
|