Message-ID: <32531500.1075852557222.JavaMail.evans@thyme> Date: Mon, 29 Oct 2001 06:27:26 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for October 29, 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)\Deleted Items X-Origin: Shankman-J X-FileName: JSHANKM (Non-Privileged).pst Charles Schwab & Co., Inc. Email Alert Morning Market View(TM) for Monday, October 29, 2001 as of 9:30AM EST Information provided by Schwab Center for Investment Research MARKETS LOOKING AT WEAK OPEN Equity index futures were pointing to a downside open for stocks, continuing the overseas trend, as earnings season winds down. With no major economic news on the docket today, corporate announcements painted the headlines. Satellite-TV service provider EchoStar Communications (DISH,26,f1) agreed to purchase General Motor Corp.'s (GM,45,f2) Hughes Electronics (GMH,15.35,f2) unit for about $31.5 billion in cash, stock and assumed debt after top rival News Corp. (NWS,29) withdrew its bid for the company. The deal values Hughes at $18.44 per share, a 20% premium to its closing price on Friday. The transaction would give EchoStar nearly a 91% share of the satellite-TV market, which could provoke regulatory scrutiny. Commercial and military aircraft maker Boeing Co. (BA,38,f2) cut its sales forecasts for next year by $1 billion to $55 billion after failing to secure the government's bid to build the new Joint Strike Fighter. However, the company's CEO said that the news won't have a "material impact" on the aerospace giant's 2001 outlook. The potentially largest defense contract ever, valued at nearly $200 billion, was awarded to Boeing's top rival Lockheed Martin (LMT,50,f2) on Friday. Humana Inc. (HUM,11.20) reported 3Q earnings of $0.18 per share, in line with the First Call consensus forecast, on a 1% decline in revenues as the health insurer exited non-core markets. Humana, like many of the health insurance giants that have recently reported strong earnings growth, has benefited from increased insurance premiums and cost-reduction efforts. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds rose across the curve as cautious sentiment prevailed ahead of this week's economic data, including tomorrow's October consumer confidence and 3Q advance Gross Domestic Product on Wednesday. Analysts per Bloomberg are looking for a 95.5 reading for consumer confidence, down from September's 97.6 level. The mean forecast for 3Q GDP is for a decline of 1.0% versus 2Q's 0.3% increase. The more significant National Association of Purchasing Management survey and employment situation reports fall on Thursday and Friday, respectively. ---------------------------------------------------------------- WORLD MARKETS European bourses were weaker this morning with softness in banking, telecom and pharmaceutical shares. Shares of Morgan Crucible Co. (MCRUF,2.75) were being punished after the UK manufacturer of wireless components reported worse-than-expected profits on slumping demand. The Bloomberg European 500 Index was off 0.99% as of 8:52 a.m. EST. The euro was higher against the dollar as traders remained cautious ahead of this week's economic data in the U.S. Asian stocks were lower with weakness concentrated in banking and technology shares, despite hints from Chartered Semiconductor's (CHRT,20,f1) CFO that the company may ship more chips in 4Q than 3Q as orders begin to pick up. Banks were lower after Japan's Financial Services Agency said that inspections of the nation's banks as part of the government's new reform plan had commenced. Japan's Nikkei-225 Index closed down 1.69% as industrial production for September declined a worse-than-expected 2.9% from the previous period's 0.8% increase. The Bank of Japan's Policy Board lowered its core estimate of economic growth for fiscal year 2001. Also, The yen was higher against the dollar. Crude oil climbed as Saudi Arabia and the United Arab Emirates indicated that OPEC was ready to cut output in the face of slumping demand. ---------------------------------------------------------------- FUTURES WATCH In the December Globex futures contract as of 8:52 a.m. EST, the S&P 500 Index was down 3.5 points (7 points below fair value) while the Nasdaq 100 index was down 1.5 points (10 points below fair value). The December DJIA futures contract was down 39 points (71 points below fair value) and the December crude oil futures traded on the NYMEX were up $0.33 at $22.36/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, other major U.S. Securities Exchanges, and SIPC. 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