Message-ID: <32864659.1075861488693.JavaMail.evans@thyme> Date: Mon, 26 Nov 2001 06:27:52 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for November 26, 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 Monday, November 26, 2001 as of 9:30AM EST Information provided by Schwab Center for Investment Research NO HOLIDAY HANGOVER FOR U.S. STOCKS Equity index futures were suggesting a positive open, continuing the trend from overseas on the heels of the recent upside momentum in U.S. stocks. Although economic and corporate news was sparse following the holiday weekend, early post-Thanksgiving results in the retailing sector, including record sales at Wal-Mart Stores (WMT,56,f2&f4), hinted that consumer spending may be more resilient than previously expected. According to TeleCheck Services Inc., same store sales in the U.S. rose 2.4% on Friday. Treasuries were virtually unchanged in the absence of any economic data. Discount retailing giant Wal-Mart reported a single-day record for sales of $1.25 billion on Friday after its Holiday Blitz promotion attracted bargain hunters to its stores. Rival K-Mart (KM,6.85) also said it saw a strong response as compared to the year-ago post-Thanksgiving period. However, most of the holiday buying appeared to be narrow in scope, with shoppers favoring the deep-discount retailers over department stores. In related news, Pier One Imports (PIR,13.97) raised its same-store sales forecast for November to an increase of 6%-8% and increased its 3Q earnings forecast to $0.21-$0.23 per share from the previous $0.19-$0.21 per share guidance. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were virtually unchanged as traders await economic data scheduled for release later in the week. Treasury Secretary Paul O'Neill hinted that the U.S. economy was on its way to a recovery, citing Friday's increase in post-Thanksgiving sales as compared to a year-ago as a sign that consumer spending remains intact. Although early reports reflected a strong retailing picture over the holiday weekend, tomorrow's consumer confidence report for November, due at 10:00 a.m. EST, should shed more light on consumer sentiment. Existing home sales are also slated for a 10:00 a.m. EST release. ---------------------------------------------------------------- WORLD MARKETS European bourses kicked the week off on a positive note led by strength in telecom equipment and computer-related stocks. Nokia (NOK,24,f2) and Ericsson (ERICY,5.55,f1) shares got a boost after Morgan Stanley increased its forecast for worldwide wireless phone unit sales by 5.4% to 390 million phones in 2001 and by 3.6% to 435 million phones in 2002. Siemens AG (SI,60) was also higher after the company broached the subject of a wage freeze for up to 40,000 of its employees in a cost-cutting move. The euro advanced against the U.S. dollar, after falling to a 3 1/2 month low last week. The Bloomberg European 500 index was up 0.3% as of 8:52 a.m. EST. Asian markets were also broadly higher with Japan's Nikkei 225 index closing up 3.4% on the heels of Friday's positive momentum in U.S. stocks. Export stocks got a boost from Wal-Mart's favorable post-Thanksgiving sales results and technology stocks were widely higher. Taiwan Semiconductor (TSM,15.70) upped its 2001 pre-tax profit guidance and sales forecast by 55% and 2.8% respectively, due to a recent pick-up in demand for its products. The yen rose against the dollar as Bank of Japan Governor Masaru Hayami said that the increased purchase of foreign currency-denominated bonds would have a limited economic impact, bucking speculation that Japan's central bank may adopt this particular strategy to weaken the Japanese currency. ---------------------------------------------------------------- FUTURES WATCH In the December Globex futures contract as of 8:52 a.m. EST, the S&P 500 index was 0.5 points lower (2 points above fair value), while the Nasdaq 100 index was up 6.5 points (6 points above fair value). The December DJIA futures contract was down 12 points (8 points above fair value), and the January crude oil futures traded on the NYMEX were down $0.21 at $18.75/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. 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