Message-ID: <29475330.1075861486395.JavaMail.evans@thyme> Date: Tue, 20 Nov 2001 06:29:13 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for November 20, 2001 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Schwab Alerts X-To: Dasovich, Jeff X-cc: X-bcc: X-Folder: \JDASOVIC (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: Dasovich-J X-FileName: JDASOVIC (Non-Privileged).pst Charles Schwab & Co., Inc. Email Alert Morning Market View(TM) for Tuesday, November 20, 2001 as of 9:30AM EST Information provided by Schwab Center for Investment Research SOFTER OPEN FOR EQUITIES Equity index futures were pointing to a lower open for the market amid a quiet news day. The trade deficit narrowed more than expected, owing primarily to one-time effects of insurance claims related to the Sept. 11 attacks, but had little effect on the markets. In corporate news, P&O Princess Cruises PLC (POC,18.10) and Royal Caribbean Cruises Ltd. (RCL,15.01) revealed merger plans while office supply giant Staples (SPLS,18.66,f1) matched earnings expectations and offered upbeat guidance. P&O Princess Cruises PLC and Royal Caribbean Cruises Ltd. announced merger plans in an effort to address the demand slowdown for leisure cruises in the wake of September's terrorist attacks. As part of the roughly $2.89 billion agreement, each Royal Caribbean share will be worth about 3.46 shares in "Loveboat" owner, P&O Princess. The two cruiselines will continue to trade separately, and the deal gives a small premium to Royal Caribbean shareholders. P&O Princess shareholders will own 50.7% of the group, while Royal Caribbean shareholders will hold the remaining 49.3%. Staples Inc., the second largest office-supply retailer, said fiscal 3Q profits rose nearly 8% to $0.20 per share, matching the First Call consensus estimate, on a 1.1% rise in sales to $2.83 billion. The company credits the elimination of unprofitable merchandise and its cost-management efforts for the quarter's results, despite a slump following the September attacks. Staples says it sees fiscal 4Q results of $0.25-$0.27 per share, as compared to the Street's $0.25 per share consensus estimate. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Treasuries were higher but retreated a bit following this morning's U.S. trade gap numbers. The U.S. trade deficit fell sharply in September to $18.69 billion from September's $27.11 billion due primarily to anomalous effects of insurance claims related to September's attacks, which reduced services imports by $11 billion, according to the Commerce Department. Analysts per Dow Jones Newswires were expecting a narrowing in the trade deficit to $26.00 billion. Overall, imports plunged 14.0% to $95.99 billion while exports declined 8.5% to $77.29 billion. ---------------------------------------------------------------- WORLD MARKETS European markets were lower after the Organization for Economic Cooperation and Development lowered its growth forecast for the euro-zone economy to 1.4% in 2002 from its previous 2.7% estimate in May and said more monetary easing may be warranted. Telecom service and industrial products stocks led the declining issues, while travel and leisure stocks got a boost from the Royal Caribbean, P&O Princess merger news. Credit Suisse Group (CSR,42) dropped after providing cautious 4Q guidance, even though it posted a better-than-expected 3Q net loss. The euro was higher against the dollar despite being pressured earlier following worse-than-expected Italian industrial orders and sales for September. Orders declined 6.6% on the month and 10.0% year-over-year, while sales were down 1.9% on the month and 4.7% year over year. German factory orders also declined in September. The Bloomberg European 500 index was down 1.06% as of 8:52 a.m. EST. Asian stocks were also under pressure with technology, communications and insurance stocks leading Japan's Nikkei down 1.4% at the close. The OECD predicts contractions of 0.7% and 1.0% in 2001 and 2002 respectively, before the Japanese economy expands an estimated 0.8% in 2003, noting that the Bank of Japan has little stimulative flexibility with lending rates close to zero. Nikon Corp. (NINOF,9.13) was lower after posting a huge drop in first-half profits and saying that it anticipates a full-year loss as demand for semiconductor equipment wanes. The yen was trading higher against the dollar. ---------------------------------------------------------------- FUTURES WATCH In the December Globex futures contract as of 8:52 a.m. EST, the S&P 500 index was 6.5 points lower (4 points below fair value) while the Nasdaq 100 index was down 16 points (8 points below fair value). The December DJIA futures contract was down 59 points (41 points below fair value) and the January crude oil futures traded on the NYMEX were up $0.93 at $19.36/barrel. 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) 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.