Message-ID: <22042146.1075851601392.JavaMail.evans@thyme> Date: Wed, 25 Jul 2001 13:24:00 -0700 (PDT) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for July 25, 2001 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Schwab Alerts X-To: jeff.dasovich 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 Please respond to SchwabAlerts.MarketUpdatesCharles Schwab & Co., Inc. Morning Market View(TM) for Wednesday, July 25, 2001 as of 11:00AM EDT Information provided by Standard & Poor's ================================================================ U.S. INDICES (11:00 a.m. EDT) ---------------------------------- Market Value Change DJIA 10,336.70 + 95.60 Nasdaq Comp. 1,979.83 + 20.59 S&P 500 1,180.99 + 9.34 ---------------------------------- NYSE Advancing Issues 1,545 NYSE Declining Issues 1,074 NYSE Trading Volume 328 mln NASDAQ Advancing Issues 1,592 NASDAQ Declining Issues 1,392 NASDAQ Trading Volume 454 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 1-year bill 3.42% n/a 5-year note 4.65% - 4/32 10-year note 5.14% - 9/32 30-year bond 5.54% - 8/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ U.S. TRADING SUMMARY Choppy trading has been the main characteristic of this morning's action in U.S. equities. After all the selling pressure over the past few sessions, a bounce in the major averages was due and started early this morning. Indeed, the bourses reversed course in premarket trading and headed higher using a positive earnings report from PeopleSoft as fuel for the bulls. After dropping lower shortly after the open, equities made a break for the upside, led by the NASDAQ. However, concerns over upcoming earnings reports may keep some residual selling pressure on the bulls. Computer software, telephone and communications equipment shares are the largest beneficiaries of the morning's gains. Meanwhile, financials, banks and tobacco stocks are under pressure. ---------------------------------------------------------------- JAPAN / EUROPE SUMMARY European markets reversed course, eroding earlier gains as German communications and engineering giant Siemens slipped into the red after reporting earnings. The company reported a third-quarter loss and stated that its semiconductor manufacturing division would cut jobs. A strong sell off in French telecom firm Alcatel before its earnings release tomorrow also cast a pall over the markets. Indeed, the French CAC-40 dropped 0.8%, the German Dax fell 0.7% and the London FTSE slipped 0.8% by midafternoon. Elsewhere, Tokyo finished stronger, though it gave up early gains in the afternoon session as pension funds took profits after the Nikkei-225 was unable to maintain strength above the key 12,000 level. The benchmark average closed the session essentially flat while the broader Topix finished with a 0.8% gain. The rise in the Topix reflects gains in some of the index's largest capitalization stocks such as NTT DoCoMo, Sony, Toyota and major banks. ---------------------------------------------------------------- CURRENCY SUMMARY The dollar is performing poorly this morning, thanks to anxiety over the U.S. recovery story via the endless drumbeat of gloomy corporate earnings and rumored German demand for euros. The greenback has slipped to about the 0.879 dollar per euro level from 0.872 overnight and to around 123.6 yen from 124.4 yen overnight. ---------------------------------------------------------------- MAJOR COMPANY / INDUSTRY NEWS (All prices as of 11:05 a.m. EDT) ** Semiconductor equipment manufacturer Lam Research (LRCX: 24.74, + 0.38) reported fiscal fourth-quarter profits that were much lower than last year's levels, but still managed to beat Wall Street analysts' expectations. The company stated that it made $36.9 million or $0.28 per share, excluding one-time losses and gains, versus a profit of $0.45 per share in the same quarter last year. Analysts had pegged the company to earn $0.14 per share on average. ** PeopleSoft (PSFT: 36.63, + 2.39) reported fiscal second-quarter earnings that beat Wall Street expectations and stated that their next quarter would beat estimates by $0.01 as well. The company announced earning $47 million, or $0.15 per share, versus $16 million, or $0.06 per share in the year-ago quarter. First Call estimates had PeopleSoft earning $0.12 per share in the latest quarter. Sales rose a better-than-anticipated 27% to $533 million. ** AT&T (T: 20.02, + 0.56) and AOL Time Warner (AOL: 42.53, - 0.17) are in the beginning stages of negotiations about a deal to merge both companies' cable operations, reported The Wall Street Journal. Indeed, the talks began just after Comcast (CMCSK: 35.55, + 0.46) made an unsolicited bid for AT&T's cable business last week, which is known as AT&T Broadband. The Journal suggested that one plan called for AT&T to spin off its broadband division and to simultaneously merge it with AOL's cable arm. Undoubtedly, there is more to come on this story from all players involved. ** QLogic (QLGC: 33.76, - 6.98) reported earnings that were in line with estimates, but the stock was hammered in early trading as the firm said sales and profits in its fiscal second quarter will be lower than expected. The company stated that it earned, on a pro forma basis, $0.23 per share in its fiscal first quarter. Sales rose 19% to $92.1 million versus $77.4 million a year ago. ---------------------------------------------------------------- ECONOMIC NEWS ** Existing home sales in June stood at a 5.33 million unit pace, lower than the previous 5.37 million unit pace and greater than the S&P MMS consensus estimate of a 5.30 million unit pace. ** THURSDAY - Second-quarter employment cost index, June durable goods orders, weekly initial jobless claims. ** FRIDAY - Advance second-quarter Gross Domestic Product, June new home sales, July consumer sentiment. ################################################################ Log in using the links below to: Access your account: https://investing.schwab.com/trading/start?SANC=CCBodyi&NeedCASelValue=Y View your Email Alert customization options: https://investing.schwab.com/trading/start?SANC=EAMyAlerts Perform research or request a market quote: https://investing.schwab.com/trading/start?SANC=Quotes Place a trade order: https://investing.schwab.com/trading/start?SANC=TradeStock To visit Schwab's home page, use this link: http://www.schwab.com/ ----------------------------------------------------------------- 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 Now you can receive graphics Email Alerts in HTML format, using helpful, full-color graphics and active Web links that connect you directly to information you want. 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