Message-ID: <30263679.1075851585047.JavaMail.evans@thyme> Date: Thu, 18 Oct 2001 09:45:09 -0700 (PDT) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Midday Market View for October 18, 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: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst Charles Schwab & Co., Inc. Midday Market View(TM) for Thursday, October 18, 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 9,194.70 - 38.27 Nasdaq Comp. 1,654.75 + 8.41 S&P 500 1,071.52 - 5.57 ---------------------------------- NYSE Advancing Issues 1,110 NYSE Declining Issues 1,777 NYSE Trading Volume 594 mln NASDAQ Advancing Issues 1,457 NASDAQ Declining Issues 1,767 NASDAQ Trading Volume 926 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 2.10% n/a 5-year note 3.78% + 1/32 10-year note 4.56% + 1/32 30-year bond 5.30% - 1/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ STOCKS REMAIN RANGEBOUND Stocks were mixed against the backdrop of the ongoing bioterrorism threat, higher-than-expected jobless claims data, and a myriad of contrasting earnings reports, including some Dow components. As of 11:58 a.m. EDT, the Dow Jones Industrial Average was down 0.3%, but the Nasdaq Composite Index was 0.6% higher. The S&P 500 Index was down 0.4%. Semiconductor, auto, oil-related and healthcare stocks were lower, while networking and biotech stocks were higher. Shares of Texas Instruments (TXN,28,f2) continued lower after the wireless chip titan reported a 3Q pro forma loss of $0.03 per share, $0.01 better than the First Call consensus as global demand for wireless and telecom equipment products weakened further. The company estimated a 4Q pro forma loss of $0.09 per share versus the Street's expectation of a $0.01 per share loss and declined to forecast when it would be profitable, but it said it anticipates a bottom in chip sales in 4Q. Shares of Siebel Systems (SEBL,17.32,f1&f4) were slightly lower after the software company reported 3Q earnings of $0.07 per share, below the Street's $0.09 mean forecast, and the company's CEO said that the post-attack environment has been extremely difficult. However, he expects business conditions to ripen in the second half of next year and said he was comfortable with analysts' 4Q estimates of $0.09-$0.14 per share. Advanced Micro Devices (AMD,9.70,f2) reported a 3Q loss, excluding charges, of $0.28 per share, in line with the Street's estimate owing to a decline in PC sales and price competition form rival Intel Corp. (INTC,24,f1&f4). However, AMD's CEO said that the company is well positioned going forward with the release of its new Athlon XP processors. Merck (MRK,67,f2) was trading lower after the Dow component lowered guidance for future sales of Vioxx as wholesalers accumulated excess stockpiles of the drug. Merck reported 2Q earnings of $0.84 per share, in line with the First Call consensus estimate. Earlier, Eli Lilly (LLY,76,f2) reported 3Q earnings of $0.66 per share, matching the Street's lowered consensus, but warned of continued erosion in Prozac sales, depressing fiscal year 2001 and fiscal year 2002 growth estimates. Shares of General Motors (GM, 41,f2) were trading lower after the company announced quarterly earnings, excluding charges, of $0.85 per share, ahead of the first call consensus estimate of $0.80 per share. However, GM lowered 4Q guidance as a result of pricing pressures associated with rental car sales. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were mixed in choppy trading amid new anthrax scares, even as Homeland Security Director Tom Ridge sought to placate concerns about the magnitude of the threat. The government's anticipated $1.5 billion 30-year debt buyback added to noise at the long end of the curve. Earlier, bonds had reacted positively to this morning's economic data, which showed a rise of 6,000 initial jobless claims to 490,000 for the week ended Oct. 13 after an upward revision of 16,000 in the prior week, according to the Labor Department. Analysts per Dow Jones Newswires had forecast a rise to 472,000. The four-week moving average of claims rose to 491,250 and continuing claims through the week ended Oct. 6 rose to 3,649,000, the highest level in more than 18 years. The report could portend an increase in the unemployment rate in the coming weeks. ---------------------------------------------------------------- WORLD MARKETS European bourses remained in negative territory late in the session with the Bloomberg European 500 Index off 1.51% as of 11:57 a.m. EDT. Computer-related and telecommunications stocks trended lower as software giant SAP AG (SAP,25,f2) reported a 3Q loss at the lower range of estimates and cut its fiscal year 2001 revenue estimates. The U.S. dollar firmed against the euro following Ridge's statements to appease the anthrax anxiety. Earlier, Germany's Finance Minister Hans Eichel slashed growth rate estimates for the country for both 2001 and 2002. Moreover, European Central Bank officials said that they remain focused on containing inflation, raising speculation that the ECB won't reduce interest rates soon enough. 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