Message-ID: <16125232.1075845218133.JavaMail.evans@thyme> Date: Mon, 4 Jun 2001 02:42:16 -0700 (PDT) From: editorial@mail.realtimetraders.com To: editorial@realtimetraders.com Subject: What is the true status of the economy? Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "RealTimeTraders.com" @ENRON X-To: Editorial@realtimetraders.com X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst Dear Subscriber, please note that you are receiving this email because you have opted into our FREE daily market analysis newsletter. If you would like to be removed from our list, reply to this email with remove in the subject line. Thank you! June 4th, 2001 RealTimeTraders.com offers free real-time stock alerts throughout the day. Why pay for chat rooms and stock pickers for old news? Morning Watch List This section contains 6 stocks that are expected move in 1 to 5 days. Click here for this morning's Watch List Stocks: http://www.realtimetraders.com/marketinfo/watchlist.asp Beyond The Numbers What is the true status of the economy? Latest economic reports have been somewhat mixed and confusing. However, it is very clear the markets have very little tolerance to any negative news. Friday morning markets declined in the early going after the markets received news that the manufacturing sector may be heading towards a recession. But, later in the session good old General Motors rescued the markets with its latest sales data. GM said sales are ahead of expectations and the company expects to deliver earnings in line with previously stated expectations of $4.25 for the full year 2001 and $1.05 for the second quarter. While the Dow component's sales data is favorable for the markets, RealTimeTraders analysts point out the sales for the month May is misleading because GM' truck sales were up 10%, but car sales were down 9%. Analysts believe the sharp jump in the truck sales could be due to problems surrounding Ford Motors. According to Ford Motor Company, sales for both truck and car sales have declined sharply. On a positive note, analysts pointed out the fact employment data showed some improvement is a positive for the overall market. Which suggests the Federal Reserve's efforts to stimulate the economy may be starting to take effect. As we stated in last Thursday's market analysis, we expect this quarter's earnings warnings and job cut announcements to be below last quarter. One other important fact that is worth noting is that the Federal Reserve seems to still indicate there will be more rates cuts ahead to further stimulate the economy. Stocks to watch Shares of Cisco have been steadily declining in the past few sessions, and accelerated to the downside going into theclose Friday after the company's recent 10Q filing said it does not see any improvement in capital spending in the foreseeable future due to the continued economic slowdown. Cisco Systems finished Friday's session lower by 41 cents and closed at $18.85, which puts the week's net loss at 14.5%. Sector Analysis Semiconductor sector may stay rangebound In the last two sessions we have seem the semiconductor index and semiconductor related stocks rebound after finding some support. However, we like to caution our readers that we do not expect this sector to move higher until we start to see some signs of sequential growth. Despite all the upgrades and positive comments from some of the leading brokerage firms, we continue to believe its is more prudent to focus on the company fundamentals than the so-called analysts ratings. Those who have been following the semiconductor sector may recall that most of the companies in this sector have continue to make negative comments about their near-term earnings outlook. Given that the semiconductor index has some support around the current level, it can be expected the sector may trade in a range until we receive further news from some of the bellwether stocks. Note that Intel is expected to give its mid quarter update during this week. We believe Intel's update would definitely impact the sector as a whole. We will continue to monitor the markets and alert our readers to any significant news that may impact the markets in our breaking news section. Economic Reports & Bond Markets Friday the bond market almost gained another full point and closed near the highs of the day. Given that this week markets will have very little in terms of economic data and the fact the bonds gained almost 2 points in the past two session might lead to some range bound trading or a pull back. Monday the Challenger Layoff figures will be released at 10AM. Market Breadth Friday's NYSE advance/decline reading was 1810/1236 Vs. Thursday's reading of1822/1236 Friday's Nasdaq advance/decline reading was 2166/1598 Vs. Thursday's reading of 2258/1591 New Highs and New Lows Friday's NYSE new high/lows was 104/23 Vs. Thursday's reading of 110/22 Friday's Nasdaq new high/lows was 132/44 Vs. Thursday's reading of 126/38 Important Market Moving News Visit our Before The Bell page -Http://www.realtimetraders.com/sp/beforethebell.asp for the most important news that may effect your portfolio. This page also provide information on stocks that are going to gap open higher/lower and the reasons if any. We also alert traders to the actively traded stocks before the bell. Upgrades / Downgrades / Coverage Initiations Click on the following link for today's upgrades.http://www.realtimetraders.com/marketinfo/g_minfo.asp?page=upgrades Click on the following link for today's downgrades.http://www.realtimetraders.com/marketinfo/g_minfo.asp?page=dngrades Click on the following link for today's new coverage initiationshttp://www.realtimetraders.com/marketinfo/g_minfo.asp?page=coverage Please remember that we will only be able to continue to offer our service FREE of charge and add other valuable content to our site if we have enough subscribers. So please pass the word around about our free services to your friends, colleagues, and family members. Also if you use any newsgroups, chat rooms or forums, we would greatly appreciate if you can post a message or two about our services. Thank you. Some of Today's Key Earnings Releases Click here for a complete list of today's earnings. http://www.realtimetraders.com/earnings/earnings.asp Company Name Expected earnings Symbol Bob Evans Farms 0.36 BOBE Dycom Industries 0.26 DY NaviSite -0.57 NAVI Riverstone Networks -0.05 RSTN Smithfield Foods 0.87 SFD Standard Microsystems -0.09 SMSC Disclaimer All information provided in this email is for informational purposes only. RealTimeTraders.com obtains data from sources it believe to be reliable. RealTimeTraders.com nor its content providers guarantee the accuracy of the content. Although the opinions expressed here are based on sound judgement, experience, and research, no warranty is given or implied as to their true reliability. The responsibility for decisions made from information contained in this email lies solely with the individual making those decisions. RealTimeTraders.com DOES NOT offer investment advice. Consult your financial advisor for all your investment decisions. 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