Message-ID: <13576588.1075852557976.JavaMail.evans@thyme> Date: Fri, 26 Oct 2001 06:22:07 -0700 (PDT) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for October 26, 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 Friday, October 26, 2001 as of 9:30AM EDT Information provided by Schwab Center for Investment Research SOFT MARKET OPEN Futures point to a slightly lower market open as JDS Uniphase (JDSU,9.96,f2) and VeriSign (VRSN,53.34,f1) issued revenue warnings with their quarterly earnings reports. The University of Michigan's index of consumer confidence is scheduled for release at 10:00 a.m. EDT. Fiber-optic equipment maker JDS Uniphase said it incurred a fiscal 1Q loss of $1.2 billion or $0.93 per share. CFO Anthony Muller said the company would have lost $0.03 per share if restructuring and merger related costs were excluded, matching the consensus First Call estimate. JDS Uniphase blamed a slump in demand for telecommunications equipment for its woes, but the company's CEO said he sees a "low-point" in demand by December or March. As a result JDS Uniphase said it expects a loss of $0.01-$0.02 per share in the fiscal 2Q on a 10%-15% sequential drop in sales. Biotech behemoth Amgen (AMGN,58,f1) reported 3Q net income of $0.30 per share, $0.01 better than the First Call consensus estimate. The company said sales of Neupogen, its treatment to prevent infections in chemotherapy patients, rose 2% to $353 million, while sales of its two anemia drugs, Epogen and Aranesp, rose 4.6% to $520 million. Chief Executive Kevin Sharer said Aranesp will drive 4Q sales growth and fiscal year 2001 sales and earnings should rise 10%-12%. Internet security provider VeriSign reported 3Q pro-forma income excluding charges of $0.28 per share, ahead of the Street's expectations for earnings of $0.16 per share, but warned that 4Q revenues would fall short of expectations. Including charges, VeriSign said it lost $1.91 per share. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were narrowly mixed in early trading with some strength on the short end and weakness on the long end. The University of Michigan will release its index of consumer confidence at 10:00 a.m. EDT. Analysts per Bloomberg are expecting a slight decline to a reading of 82.5. Also at 10:00 a.m., new home sales are expected to fall to a rate of 860,000 for September. ---------------------------------------------------------------- WORLD MARKETS European stocks were generally higher, led by technology shares, following the Nasdaq's 2.5% rise yesterday. Shares of mobile network provider Ericsson (ERICY,4.35,f1) were higher, despite a wider-than-expected 3Q loss, after the company named Michael Treschow as chairman. As of 8:55 a.m. EDT, the Bloomberg European 500 Index was up 1.32%. 3Q Gross Domestic Product in the UK rose a better-than-expected 0.6%. The euro was little changed versus the dollar. Japanese stocks fell on weakness in semiconductor and auto sales following the weaker-than-expected durable goods report in the U.S. yesterday. Chip maker Toshiba (TOSBF,3.85) reported a larger-than-expected loss for the six months ended Sept. 30. The Nikkei-225 Index fell 0.78% while the yen was little changed versus the dollar. ---------------------------------------------------------------- FUTURES WATCH In the December Globex futures contract as of 8:50 a.m. EDT, the S&P 500 Index was down 3.4 points (2 points below fair value) while the Nasdaq 100 index was down 12 points (16 points below fair value). The December DJIA futures contract was down 42 points (14 points below fair value) and the December crude oil futures traded on the NYMEX were unchanged at $22.01/barrel. 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