Message-ID: <12890637.1075861489419.JavaMail.evans@thyme> Date: Tue, 27 Nov 2001 06:29:24 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for November 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: \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 Tuesday, November 27, 2001 as of 9:30AM EST Information provided by Schwab Center for Investment Research STOCKS POISED FOR REPRIEVE U.S. stocks were set to take a breather from the recent rally at the open, continuing the trend from overseas as Nokia Corp. (NOK,25,f2) cut its forecast for global wireless demand for 2001 and projected a less optimistic forecast for 2002 demand than that of previous estimates by other major industry players. Earnings news was fairly sparse with Tech Data (TECD,40,f1) and K-Mart (KM,6.85) both beating the Street's estimates. Treasuries were softer ahead of today's consumer confidence data, scheduled for a 10:00 a.m. EST release. Merchandise discounter K-Mart Corp. reported a 3Q loss excluding charges of $0.25 per share, slightly better than the First Call consensus estimate for a $0.27 per share loss as the company incurred costs from re-tooling its supply-chain infrastructure. Same store sales fell 1.5%. Global IT hardware and software provider Tech Data Corp. was trading higher in premarket activity after posting 3Q profits excluding charges of $0.58 per share, ahead of the Street's $0.51 per share consensus estimate, as sales declined 19% to $4.2 billion. The company's CEO commented that, "We continued to execute extremely well during the quarter, delivering solid results despite the weak economic conditions." Additionally, Tech Data forecast 4Q earnings of $0.58-$0.63 per share versus the Street's $0.61 per share estimate. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were mixed, but generally lower as traders speculated that today's consumer confidence report may come in above analysts' expectations. Analysts per Bloomberg are expecting a November reading of 86.5 versus October's 85.5 level. Consumer confidence has been declining since June and is at its lowest level in over seven years. ---------------------------------------------------------------- WORLD MARKETS European markets were lower after Nokia Corp. cut its 2001 sales estimate for global handsets to 380 million from the previous 390 million forecast and said it anticipates worldwide sales of 420-440 million phones in 2002, slightly lower than Motorola's (MOT,17.96,f2) earlier 420-460 million forecast. The wireless giant expects sales to increase by 15% in 2002, with 25%-35% growth in 4Q of 2002. Earlier in the day, Bank of England Governor Sir Edward George commented that the global economy will potentially recover more quickly than expected next year and that chances of a recession in the UK are slim due to the strength in consumer spending. George said he couldn't understand the relative weakness in the euro. Nevertheless, the euro-zone currency continued lower against the dollar ahead of today's consumer confidence data in the U.S. The Bloomberg European 500 index was down 0.5% as of 8:54 a.m. EST, led by weakness in tobacco and insurance stocks while manufacturing and telecom issues were higher. The Nikkei 225 index led Asian markets lower, closing down 1.0% on weakness in communications and banking stocks after Fitch downgraded the credit ratings of several large Japanese banks, saying that the government is not in a strong enough position to support the beleaguered industry. Shares of NTT DoCoMo (NTDMY,71) fell after the wireless operator found a flaw in its high-speed wireless Internet services phones made by NEC Corp. (NIPNY,10.28) and Standard & Poor's said it may downgrade the company's credit rating on restructuring concerns. The yen was trading flat against the dollar. Crude oil got a boost after President Bush demanded that UN weapons inspectors be allowed back into Iraq, threatening oil supplies from the region. ---------------------------------------------------------------- FUTURES WATCH In the December Globex futures contract as of 8:54 a.m. EST, the S&P 500 index was 4 points lower (7 points below fair value), while the Nasdaq 100 index was down 8 points (12 points below fair value). The December DJIA futures contract was down 28 points (43 points below fair value), and the January crude oil futures traded on the NYMEX were up $0.11 at $18.80/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. Schwab Capital Markets L.P. is also a subsidiary of The Charles Schwab Corporation and is a market maker in approximately 5000 securities. Schwab Center for Investment Research ("SCIR") is part of Charles Schwab & Co., Inc. The information contained herein is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. Schwab does not assess the suitability or the potential value of any particular investment. All expressions of opinions are subject to change without notice. The Charles Schwab Corporation, Schwab, Schwab Capital Markets L.P. and its officers, directors, employees, consultants and/or members of their families may have a position in, and may from time to time, purchase or sell any of the mentioned or related securities including derivatives in such securities. At any given time, Schwab specialists, or Schwab Capital Markets L.P. market makers, may have an inventory position, either "long" or "short" in any security mentioned in this report as a result of their specialist/market making functions, respectively. (C)2001 Charles Schwab & Co., Inc. F1 Schwab Capital Markets L.P. makes a market in this security. F2 Schwab is a specialist in this security. F3 Schwab has managed or co-managed a public offering in this security within the last three years. F4 An employee of Schwab is a Director of this company. F5 An analyst covering this stock has an investment position. This service is for personal use only. Commercial use or redistribution in any form, print or electronic, is prohibited. Distribution by Quris, Inc.