Message-ID: <26935580.1075852560127.JavaMail.evans@thyme> Date: Tue, 23 Oct 2001 06:31:09 -0700 (PDT) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for October 23, 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 Tuesday, October 23, 2001 as of 9:30AM EDT Information provided by Schwab Center for Investment Research STOCKS, YANKEES ON A TEAR Much like the recent winning trend of the world champion New York Yankees, stocks were poised to add to recent gains at the open as earnings season continues in full swing amid the backdrop of an ongoing retaliatory campaign and bioterrorism scares. Telecommunication equipment giant Lucent Technologies (LU,6.90,f2) said its loss for the fiscal 4Q widened to $0.27 per share, excluding $8 billion in restructuring and one-time charges, worse than the $0.23 per share First Call consensus estimate. Including the charges, Lucent's loss widened to $2.59 per share. The company cited the elimination of jobs and some of its product lines for the charges. Going forward, Lucent anticipates a sequential fall in revenue in fiscal 1Q before a rise in fiscal 2Q sales. Leading U.S. oil company and Dow component Exxon Mobil (XOM,41,f2) posted 3Q earnings, excluding items, of $0.48 per share, below the First Call consensus of $0.50 per share on a 9.5% revenue decline amid softening demand and weaker crude prices. In a similar story, oilfield services company Schlumberger Ltd. (SLB,48,f2) reported 3Q earnings of $0.34 per share, $0.01 lower than the Street's mean forecast. Pharmaceutical titan Bristol-Myers Squibb (BMY,60,f2) posted 3Q earnings of $0.63 per share, in line with the First call consensus. Sales of the company's diabetes and blood-clotting drugs offset declining sales of its flagship cancer and anxiety medicines. Insurance and financial services company MetLife (MET,26) reported that it was eliminating roughly 1,900 jobs in a move to cut costs amid weakening conditions in the sector. The Snoopy and Charlie Brown purveyor also reduced its claims estimates associated with the Sept. 11 attacks to roughly $210 million, down from the previous forecast of $250 million to $300 million. The company expects 3Q operating profits of $0.29-$0.31 per share. Mobile-phone company AT&T Wireless (AWE,12.94,f2) said 3Q profits rose to $0.03 per share, well above the $0.02 per share loss expected by the Street. The company said that it added an additional 748,000 mobile customers during the quarter and sales rose 25%, but it plans to leave the fixed wireless business and take a related pretax 4Q charge. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were slightly lower as stocks were poised to open higher. Bonds will likely take direction from the equities market absent any significant economic data or Fed speak. ---------------------------------------------------------------- WORLD MARKETS Technology stocks once again led European bourses higher, with the Bloomberg European 500 Index up 1.99% as of 8:57 a.m. EDT. Dutch banking company ABN Amro (ABN,14.79,f2) lowered its fiscal year 2001 earnings guidance in the wake of the terrorist attacks, while drug giant GlaxoSmithKline PLC (GSK,55) saw its 3Q earnings rise 20%, slightly above expectations. The dollar continued its upward trend against the euro as traders anticipate a quicker economic recovery in the U.S. than in other parts of the world. Adding to the gloomy economic landscape, Italian business confidence fell to 84 in September from August's 96, well below expectations. However, September's French consumer spending data was unexpectedly higher. Asian markets were higher with Japan's Nikkei-225 finishing up 2.80% led by strength in technology and exporters owing to continued weakness in the yen. The Japanese currency continued to slide against the dollar amid a government report that investors have sought better returns in foreign bonds since the beginning of the second half of the fiscal year. In earnings news, Chartered Semiconductor (CHRT,18.70,f1) reported a better-than-expected 3Q loss of $118.3.million and said it was close to a bottom in the beleaguered chip industry. ---------------------------------------------------------------- FUTURES WATCH In the December Globex futures contract as of 8:57 a.m. EDT, the S&P 500 Index was up 4.5 points (7 points above fair value), while the Nasdaq 100 Index was up 15.5 points (17 points above fair value). The December DJIA futures contract was up 28 points (47 points above fair value) and the December crude oil futures traded on the NYMEX were up $0.10 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. 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". 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