Message-ID: <12246832.1075852559375.JavaMail.evans@thyme> Date: Wed, 24 Oct 2001 09:45:40 -0700 (PDT) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Midday Market View for October 24, 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 Midday Market View(TM) for Wednesday, October 24, 2001 as of 1:00PM EDT Information provided by Schwab Center for Investment Research and Bridge U.S. INDICES (1:00 p.m. EDT) ---------------------------------- Market Value Change DJIA 9,314.20 - 25.88 Nasdaq Comp. 1,719.01 + 14.57 S&P 500 1,082.01 - 2.77 ---------------------------------- NYSE Advancing Issues 1,243 NYSE Declining Issues 1,673 NYSE Trading Volume 643 mln NASDAQ Advancing Issues 1,645 NASDAQ Declining Issues 1,586 NASDAQ Trading Volume 898 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 2.06% n/a 5-year note 3.83% - 1/32 10-year note 4.61% - 2/32 30-year bond 5.34% - 3/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ MIXED PICTURE Stocks drifted in and out of positive territory amid a plethora of mixed earnings results and mostly cautious guidance. Traders will likely look to today's Beige Book economic summary at 2:00 p.m. EDT for more clues about the economic outlook. As of 12:03 p.m. EDT, the Dow Jones Industrial Average was down 0.2%, with the Nasdaq Composite Index 1.2% higher. The S&P 500 Index was virtually flat. Computer-related, chip and drug stocks paced the advancers, while energy-related and telecom issues were among the worst performers. Shares of Amazon.com (AMZN,7.65,f2) were sharply lower after the Internet retailing giant said its 3Q loss, excluding items, narrowed to $0.16 a share, matching the First Call consensus estimate, on revenues of $639.3 million, slightly below the Street's $650.3 million mean forecast. The company attributed the slimmer loss to cost cutting at its warehouses. Going forward, Amazon said it expects year-over-year 4Q sales to be flat to 10% higher, down from its previous guidance of a 10% to 20% increase. The new estimate would put sales in the range of $970 million to $1.07 billion, below the First Call consensus of $1.10 billion. Shares of Compaq Computer (CPQ,9.41,f2&f4) were slightly lower after the PC maker said that it incurred a 3Q loss, excluding items, of $0.07 per share, $0.01 shy of the First Call consensus estimate, owing to sluggish demand and a fiercely competitive price war, as it continues to give up market share to rival Dell Computer (DELL,25,f1). Looking ahead, Compaq lowered its 4Q outlook, saying its expects an operating loss of $0.03 per share, lower than the Street's break-even mean forecast. AMR Corp. (AMR,19.75), parent to airline carrier American Airlines and TWA, said its 3Q loss, excluding items, was $3.40 per share, well below the First Call consensus of $2.61 per share. AMR blamed sluggish demand, exacerbated by the September attacks, for its troubles. Revenues for September alone fell 22%. Looking forward, AMR's CEO said that 4Q results "won't be pretty." Shares of Eastman Kodak (EK,29), were getting hammered after the photography giant reported 3Q operating profits of $0.52 per share, in line with the Street's mean estimate. The Dow component announced that it will eliminate as many as 4,000 workers, and that 4Q operating profits will be about one-third of the First Call consensus estimate of $0.46 per share, due to the economic malaise. Aerospace and diversified manufacturer Honeywell International (HON,28,f2) reported 3Q profits, excluding charges, of $0.44 per share, matching the First Call consensus estimate. Including a $1 billion charge for job cuts and restructuring, Honeywell posted a net loss of $0.38 a share. The Dow component said its aerospace business was hurt by sluggish demand in the airline industry, aggravated by the September attacks. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds held on to gains in quiet trading ahead of today's 2-year note auction, the results of which will be released at 1:00 p.m. EDT. The Beige Book report on the economy, which will serve as a basis of discussion and policy at the upcoming Nov. 6 Federal Open Market Committee meeting, is scheduled for a 2:00 p.m. EDT release. ---------------------------------------------------------------- WORLD MARKETS European markets were mostly higher late in the day with strength in paper, manufacturing and computer service issues, while energy stocks paced the decliners. The Bloomberg European 500 Index was up 0.22% as of 12:03 p.m. EDT. BP PLC (BP,48) led the decline in oil stocks following reports from the American Petroleum Institute and Department of Energy that showed weakening U.S. demand for crude products. The DOE reported a 2.8 million barrel inventory increase during the week ended Oct. 18. German Consumer Price Index data indicated that consumer prices declined 0.3% during the month through mid-October, and rose 2.0% year-over-year through the same date, in line with the European Central Bank's inflation target, fueling optimism that the ECB will cut interest rates at Thursday's meeting in order to stimulate the weak euro-region economy. The euro, which rose against the dollar earlier following the data, held on to its gains. 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) Information provided by Bridge Information Systems. Copyright 2001 Bridge Information Systems. Charles Schwab & Co., Inc. ("Schwab") is a member of the NYSE, other major U.S. Securities Exchanges, and SIPC. Schwab is a specialist in various securities on the Pacific, Boston and Cincinnati Stock Exchanges and is subsidiary of The Charles Schwab Corporation, which is listed on the NYSE and trades under the symbol "SCH". 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 4,900 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. Additionally, Schwab or Schwab Capital Markets L.P. may be on the opposite side of orders executed on the floor of the Pacific, Boston and/or Cincinnati Stock Exchanges or over-the-counter market respectively, as well. Schwab (or persons related thereto) or consultants may perform or solicit investment banking or other business from any company mentioned in this report. (C)2001 Charles Schwab & Co., Inc. 1) Schwab Capital Markets L.P. makes a market in this security. 2) Schwab is a specialist in this security. 3) Schwab has managed or co-managed a public offering in this security within the last three years. 4) An employee of Schwab is a Director of this company. 5) 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.