Message-ID: <15033907.1075851603186.JavaMail.evans@thyme> Date: Thu, 19 Jul 2001 13:32:00 -0700 (PDT) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for July 19, 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 Thursday, July 19, 2001 as of 11:00AM EDT Information provided by Standard & Poor's ================================================================ U.S. INDICES (11:00 a.m. EDT) ---------------------------------- Market Value Change DJIA 10,659.50 + 89.70 Nasdaq Comp. 2,065.67 + 49.50 S&P 500 1,221.17 + 13.46 ---------------------------------- NYSE Advancing Issues 1,685 NYSE Declining Issues 964 NYSE Trading Volume 373 mln NASDAQ Advancing Issues 1,984 NASDAQ Declining Issues 988 NASDAQ Trading Volume 545 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 1-year bill 3.43% n/a 5-year note 4.64% - 4/32 10-year note 5.11% - 5/32 30-year bond 5.52% - 3/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ U.S. TRADING SUMMARY After yesterday's sell-off, the major averages all moved higher from the open as a number of encouraging corporate outlooks lured back the buyers. Technology shares have been the largest beneficiaries of buyer interest today, as a host of encouraging earnings announcements from U.S. firms and cell-phone maker Nokia helped offset concerns over IBM's somewhat pessimistic outlook. Technology investors had further reason to cheer when Dell Computer reaffirmed its earnings outlook this morning. Not surprisingly, the NASDAQ has been the largest beneficiary of the tech buying, jumping 2.5%. The S&P 500 rose more than 1% on strength in semiconductors, communication and computer software/systems. The Dow has gains just shy of 1%, led higher by shares of United Tech, Microsoft and GE. ---------------------------------------------------------------- JAPAN / EUROPE SUMMARY European stocks were mostly higher in midafternoon European trading as a positive earnings report from cell-phone maker Nokia and encouraging results from SAP, the largest European software producer based in Germany, provided support. The German Dax has powered 1.0% higher, while the French CAC-40 rose 0.7%. The London FTSE is holding around unchanged levels, restrained by weakness in shares of British Telecom and Vodafone. Elsewhere, the Japanese market was weaker overall, with banking shares falling sharply on increasingly negative sentiment. Indications from U.S. Federal Reserve Chairman Alan Greenspan that the U.S. economy could weaken further set a gloomy tone. The Topix index finished lower by 0.4% and ended the session at its lowest level since March 15. The Nikkei 225, heavily weighted in technology shares, managed to finish 0.1% higher. ---------------------------------------------------------------- CURRENCY SUMMARY The U.S. dollar has found some relief after yesterday's drubbing that came on Greenspan's testimony and perceptions that the U.S. would abandon its strong-dollar policy. The dollar has found some comfort versus the euro, strengthening to around the 0.870 dollar per euro level after trading as low as 0.878 dollars per euro overnight. However, the greenback has had a more difficult time versus the yen, slipping further to around the 123.5 yen level after trading just above the 124 yen level overnight. Recall that the dollar was trading around 125.5 yen and 0.850 dollars per euro as recently as Tuesday. ---------------------------------------------------------------- MAJOR COMPANY / INDUSTRY NEWS (All prices as of 11:05 a.m. EDT) ** IBM (IBM: 104.68, + 0.40) reported earnings for its second quarter in line with Wall Street expectations on slightly slowing sales that were below expectations. Earnings totaled $2.1 billion, or $1.15 per share, versus $1.9 billion, or $1.06 per share, in the same quarter last year. Revenues, at $21.6 billion, were about $1 billion below what Wall Street had expected. But while results in the current quarter were roughly in line with estimates, IBM was somewhat cautious over future prospects. The firm stated that a number of problems could impact their bottom line, including the negative effects of a strong U.S. dollar, weakness in some business lines and investment losses. IBM is the world's largest computer hardware supplier, a leading software supplier and has the world's largest technology services businesses. ** Satellite TV firm Echostar (DISH: 30.54, + 0.57) handily beat Wall Street estimates, reporting a second-quarter profit when analysts expected the company to lose money during the quarter. Instead, the second-largest satellite TV provider earned $2.3 million, or nil on a per share basis, versus Wall Street expectations that the company would lose $0.10 per share. Sales rose about 50% to about $966 million. The unexpectedly good news came as a result of a jump in the number of subscribers, which grew 6% to 6.1 million customers. ** Lawsuit-plagued Philip Morris (MO: 46.13, + 0.65) reported fiscal second-quarter earnings that matched Wall Street estimates. The maker of Marlboro cigarettes and Miller beer earned $2.3 billion, or $1.03 per share, versus $2.2 billion, or $0.95 per share, in the same quarter last year. Revenues rose 11% to $23.2 billion over last year's quarter as the firm hiked cigarette prices. ** A host of large technology firms reported corporate results last night. Siebel Systems (SEBL: 36.17, - 1.47) beat estimates when it reported earning $0.15 per share versus $0.10 per share a year ago. Analysts had expected earnings of $0.13 per share. Elsewhere, Applied Micro Circuits (AMCC: 18.17, + 1.17) reported a first-quarter loss, excluding charges, of $13.6 million or $0.05 per share. The company expects to cut 5% of its work force and take an $8 million to $11 million charge against earnings for the cutback. Broadcom (BRCM: 44.28, + 5.28) reported a sharp drop in second-quarter profits, but joined Applied Micro Circuits in saying it expects sales to possibly rebound toward the end of this year. ---------------------------------------------------------------- ECONOMIC NEWS ** U.S. trade balance for May came in at a $28.3 billion deficit, less than the previous $32.0 billion deficit and below the S&P consensus estimate of a $32.0 billion deficit. ** Weekly initial jobless claims came in at 414K, less than the previous week's 449K and below the consensus estimate of 425K. ** Leading economic indicators for June rose 0.3%, slightly below the previous month's 0.4% increase and matching the consensus estimate. ** Philadelphia Federal Reserve manufacturing index for July due out at 12:00 p.m. EDT. ** FRIDAY - U.S. Treasury budget for June. ################################################################ 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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