Message-ID: <3668420.1075859195085.JavaMail.evans@thyme> Date: Thu, 27 Dec 2001 06:40:56 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for December 27, 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 Thursday, December 27, 2001 as of 9:30AM EST Information provided by Schwab Center for Investment Research MARKETS LOOK TO OPEN SLIGHTLY HIGHER U.S. equity index futures are pointing to a slightly higher open as economic and equity news is sparse this morning. Apple Computer (AAPL,22,f1) said its retail outlets may report a loss in 2002 and TMP Worldwide (TMPW,42,f1) stated it would not boost its offer for Hotjobs.com (HOTJ,10.67,f1). U.S. Treasuries are flat and world markets are higher. TMP Worldwide, provider of the popular Monster.com web site, reported that it would not increase its bid for competitor Hotjobs.com, saying it had offered "full and fair value" for the entity. Hotjobs announced on Monday that it would accept a $436 million offer from rival bidder Yahoo! (YHOO,17.51,f1) if TMP did not increase its proposal, which has shrunk since June given declines in TMP's stock. If the acquisition fails, TMP is entitled to as much as $17 million in termination and reimbursement fees from Hotjobs and the company would remain the No. 1 online recruitment site. Apple Computer said it now expects its retail stores to incur a loss in 2002, contrary to forecasts made last May predicting retail profitability for the year ending in fiscal 2002. Apple blamed the setback on the economic recession in the U.S. and the slowdown in the PC market, exacerbated by the terrorist attacks. The California-based computer maker opened 27 retail stores this year, two more than originally planned. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY U.S. Treasury prices are little changed across the curve ahead of today's record $23 billion 2-year note auction. Friday's economic plate is full as initial jobless claims, originally scheduled for release this morning, will be released tomorrow. In addition, consumer confidence figures, the Chicago Purchasing Managers' Index, new and existing home sales, and durable goods orders will be reported. ---------------------------------------------------------------- WORLD MARKETS European markets are marginally higher with the Bloomberg European 500 index up 0.8% as of 8:53 a.m. EST, led by bank, telecom and energy shares. In economic news, French business confidence rose to 90.0 in December, higher than the 89.5 estimate per Bloomberg and November's 89.0 reading. On the corporate front, Nestle SA (NSRGY,52,f1) paid $641 million to General Mills (GIS,52,f2) in a joint venture giving it the rights to Haagen-Dazs in the U.S. and Canada. Oil-related issues also did well as companies like Royal Dutch Petroleum NV (RD,49,f2) rose on expectations that OPEC will announce its 1.5 million barrel per day production cut on Friday. The euro is trading higher versus the U.S. dollar. Asian markets finished higher as the Nikkei 225 index advanced 2.6% with technology and export issues leading the way. In economic news, the Ministry of Economy, Trade and Industry reported that Japanese industrial production declined a seasonally adjusted 1.8% in November to the lowest level in 14 years. Prime Minister Junichiro Koizumi reiterated plans to cut spending and force banks to write of bad debt, saying, "... we must press on with employment measures and structural reforms." Following the positive retail news in the U.S. yesterday, exporters fared well with companies like Sony Corp. (SNE,44) advancing. The yen fell versus the U.S. dollar given the weak economic data. ---------------------------------------------------------------- FUTURES WATCH In the March Globex futures contract as of 8:51 a.m. EST, the S&P 500 index was up a point (3 points above fair value) while the Nasdaq 100 index was 1 point higher (5 points above fair value). The March DJIA futures contract was down 7 points (25 points above fair value), and the February crude oil futures traded on the NYMEX were down $0.68 at $20.59/barrel. Jeffrey Reeve, 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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