Message-ID: <12707410.1075845226765.JavaMail.evans@thyme> Date: Thu, 7 Jun 2001 02:08:53 -0700 (PDT) From: editorial@mail.realtimetraders.com To: editorial@realtimetraders.com Subject: Markets may continue to come under pressure Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "RealTimeTraders.com" @ENRON X-To: Editorial@realtimetraders.com X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst Dear Subscriber, please note that you are receiving this email because you have opted into our FREE daily market analysis newsletter. If you would like to be removed from our list, reply to this email with remove in the subject line. Thank you! June 7th, 2001 RealTimeTraders.com offers free real-time stock alerts throughout the day. Why pay for chat rooms and stock pickers for old news? Morning Watch List This section contains 6 stocks that are expected move in 1 to 5 days. Click here for this morning's Watch List Stocks: http://www.realtimetraders.com/marketinfo/watchlist.asp Beyond The Numbers Markets pulls back on more negative news Wednesday we talked about the possibility of market getting ahead of itself on too much optimism. Just one day after the triple digit gain, Dow gave back virtually all its gains thanks to Hewlett Packard and JP Morgan. J.P. Morgan Chase & Co. warned trading revenues will probably decline in the quarters ahead and the company will have to realize some write downs relating to venture capital funds. Hewlett Packard warned the slowdown in IT spending has spread globally to other economies around the world, especially Asia and Europe. Wednesday RealTimeTraders speculated that Asia and Europe might be the next in line to feel the effects of the technology slowdown. If these two regions do indeed start to show signs of weakness, it may become a major problem to some of the US Corporations. We believe Thursday everyone will closely watch Intel Corp's comments to determine if a turn around is in sight. Given HP's comments, the analyst community will pay close attention to comments from Intel and other multi- national corporations for any signs of a global slowdown. Hewlett Packard finished the session lower by $1.34 to close at $28.71 on 9.3 million shares. Dow finished the session lower by 105 points, Nasdaq finished the session lower by 17 points and the S&P finished the session lower by 13 1/2 points. Markets may continue to come under pressure on Thursday as a result of the slew of negative news that was announced after the close on Wednesday. As described below Wells Fargo announced a huge charge as a result of bad venture capital deals. Brocade Communications (BRCD) warned earnings would be below previously expected. American Eagle (AEOS) reported may same store sales that were significantly below street estimates. And a California court handed a verdict against Philip Morris (MO) worth more than $3 billion. Stocks to watch INTC - Shares of Intel Corp. have been trading in a very narrow range over the past few weeks as investors await to see what the company will say in the mid quarter update on Thursday. It seems Advanced Micro Devices (AMD) has been winning the war on price, and this morning CS First Boston echoed the same concerns and said it expects Intel to lower EPS estimates tomorrow. WFC - After the close Wells Fargo reported it will recognize an after tax non- cash charge of approximately $1.13 billion in the second quarter related to impairment of some of its venture capital securities. The company said the bulk of the charge, which equates to $0.65 per share, comes from reductions of non-cash venture capital recognized in late 1999 and 2000. On this news the stocks traded lower by 3% in after hours. Sector Analysis Small Stocks continues to do well In the past few weeks some of the small stocks have been powering higher in anticipation of improving economic conditions. Readers may want to take note the small stock index Russell has gained almost 20% in the last 2 months. However, note the index does have some resistance around the 517 level. Wednesday the Russell 2000 lost 3.90 points and closed at 512. If technology stocks pick up momentum, this index may see further upside. Those who like to follow small stocks may want to visit our "$5 and under" page. Economic Reports & Bond Markets Thursday weekly jobless claims will be released at 8:30 AM, current consensus estimate is 417K. Then wholesale Inventory data for the month of April is expected at 10 AM. Friday there are no economic reports to be released. Therefore, bond market activity will most likely depend on technical indicators. Wednesday the September contracts finished the session higher by 1 tick to close at 101.01. Market Breadth Wednesday's NYSE advance/decline reading was 1215/1856 Vs. Tuesday's reading of1986/1087 Wednesday's Nasdaq advance/decline reading was 1619/2201 Vs. Tuesday's reading of 2464/1364 New Highs and New Lows Wednesday's NYSE new high/lows was 173/20 Vs. Tuesday's reading of 200/13 Wednesday's Nasdaq new high/lows was 124/30 Vs. Tuesday's reading of 168/38 Important Market Moving News Visit our Before The Bell page -Http://www.realtimetraders.com/sp/beforethebell.asp for the most important news that may effect your portfolio. This page also provide information on stocks that are going to gap open higher/lower and the reasons if any. We also alert traders to the actively traded stocks before the bell. Upgrades / Downgrades / Coverage Initiations Click on the following link for today's upgrades.http://www.realtimetraders.com/marketinfo/g_minfo.asp?page=upgrades Click on the following link for today's downgrades.http://www.realtimetraders.com/marketinfo/g_minfo.asp?page=dngrades Click on the following link for today's new coverage initiationshttp://www.realtimetraders.com/marketinfo/g_minfo.asp?page=coverage Please remember that we will only be able to continue to offer our service FREE of charge and add other valuable content to our site if we have enough subscribers. So please pass the word around about our free services to your friends, colleagues, and family members. Also if you use any newsgroups, chat rooms or forums, we would greatly appreciate if you can post a message or two about our services. Thank you. Some of Today's Key Earnings Releases Click here for a complete list of today's earnings. http://www.realtimetraders.com/earnings/earnings.asp Company Name Expected earnings Symbol CSK Auto 0.20 CAO National Semiconductor -0.03 NSM Disclaimer All information provided in this email is for informational purposes only. RealTimeTraders.com obtains data from sources it believe to be reliable. RealTimeTraders.com nor its content providers guarantee the accuracy of the content. Although the opinions expressed here are based on sound judgement, experience, and research, no warranty is given or implied as to their true reliability. The responsibility for decisions made from information contained in this email lies solely with the individual making those decisions. RealTimeTraders.com DOES NOT offer investment advice. Consult your financial advisor for all your investment decisions. Do not rely on this publication alone to make your investment decisions. 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