Message-ID: <11575354.1075859194717.JavaMail.evans@thyme> Date: Mon, 24 Dec 2001 07:04:32 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for December 24, 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: \Jeff_Dasovich_Jan2002\Dasovich, Jeff\Deleted Items X-Origin: Shankman-J X-FileName: jshankm (Non-Privileged).pst Charles Schwab & Co., Inc. Email Alert Morning Market View(TM) for Monday, December 24, 2001 as of 9:30AM EST Information provided by Schwab Center for Investment Research STOCKS FLAT IN PRE-HOLIDAY SESSION Stocks are poised to open flat to slightly higher in the absence of any market-moving earnings news or economic data on this pre-holiday, abbreviated session. In equity news, Schering Plough (SGP,36,f2) won FDA approval in the U.S. for a potentially blockbuster drug. Treasuries are flat while European markets are generally higher, despite Argentina's debt default announcement. The U.S. equities market is scheduled for a 1:00 p.m. EST close. Shares of Schering-Plough were higher in premarket activity after the pharmaceutical giant received FDA approval late Friday for Clarinex, the successor to Schering's flagship allergy drug, Claritin, the patent on which expires in December 2002. Schering also said that it was close to resolving manufacturing plant problems previously cited by the FDA, which could include paying up to $500 million in fines. The company's CEO said he expects 4Q earnings of $0.36 per share, $0.05 per share below the previous First Call consensus estimate, primarily due to the negative impact of its manufacturing difficulties on sales. He also said that full year 2002 earnings growth would be in the "low double-digits." Brewing giant Adolph Coors Co. (RKY,59,f2) has agreed to purchase Belgian Interbrew SA's (IBRWF,26) U.K. Carling unit for $1.7 billion in cash, providing Coors with one of Britain's leading beer brands. The move comes as Interbrew was ordered to sell Carling by British regulators as a result of its purchase of Bass Brewers and Whitbread Plc's brewing unit last year. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were virtually unchanged across the curve in thin pre-holiday trading with no economic data slated for release until Wednesday's consumer confidence and existing home sales data. The Bond Market Association has recommended a 2:00 p.m. EST close for the U.S. government debt market today. ---------------------------------------------------------------- WORLD MARKETS European bourses were mixed but generally higher, with the Bloomberg European 500 index up 0.4% as of 8:57 a.m. EST. Telecom service and banking stocks were higher, while travel and leisure stocks were lower following a thwarted attempt by a passenger to ignite an explosive aboard flight 63 from Paris to Miami on Saturday. The euro was trending lower against the dollar after Argentina's interim President Adolfo Rodriguez Saa suspended payment on up to $132 billion of government debt, saying instead that he would divert the payments toward creating jobs and assisting the poor. Though he maintained that the Argentinian peso would remain pegged to the U.S. dollar, he suggested printing new notes that provincial governments could utilize to meet obligations, a move that could potentially undermine the peg. Asian markets were mixed with Japan's Nikkei 225 index closed for a national holiday. The dollar hit a fresh 3-year high against the yen, approaching the 130 yen per dollar level, despite comments from Japan's trade minister hinting that it wouldn't be prudent to let the yen weaken any further. In other news, Japan's government approved a budget bill for its next fiscal year that will cut policy-related spending by 2.3%, a move that was advocated by the country's finance minister to expedite structural reforms. ---------------------------------------------------------------- FUTURES WATCH In the March Globex futures contract as of 8:57 a.m. EST, the S&P 500 index was down 2 points while the Nasdaq 100 index was 3 points lower (6 points above fair value). The March DJIA futures contract was down 10 points (2 points above fair value), while Nymex crude oil futures trading is closed in observance of the holiday. 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. 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