Message-ID: <17008175.1075844535883.JavaMail.evans@thyme> Date: Fri, 7 Jan 2000 10:18:00 -0800 (PST) From: sara.shackleton@enron.com To: sshackl@msn.com Subject: SmartPortfolio.Com Update: Markets Rally, Dow Hits Record High Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Sara Shackleton X-To: sshackl@msn.com X-cc: X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_1\Notes Folders\Sent X-Origin: SHACKLETON-S X-FileName: sshackle.nsf ---------------------- Forwarded by Sara Shackleton/HOU/ECT on 01/07/2000 06:18 PM --------------------------- "SmartPortfolio.Com" on 01/07/2000 04:58:17 PM Please respond to "SmartPortfolio.Com" To: Sara Shackleton/HOU/ECT@ECT cc: Subject: SmartPortfolio.Com Update: Markets Rally, Dow Hits Record High The following is a FREE service brought to you by SmartPortfolio.Com, located on the Web at http://www.smartportfolio.com AOL users click here Update January 7, 2000 Friday's Market Update: Markets Rally, Dow Hits Record High 1. Friday's Market Action 2. Internet and Tech Stocks 3. Notable Earnings Announcements 4. Notable Upgrades and Downgrades 5. Stock Splits 6. IPO Commentary 7. IPO Calendar ************************Advertisement**************************** JDS Uniphase (Nasdaq:JDSU) Up 30 3/16 to 179 15/16 Today! JDS Uniphase soars over 20% -- a recent issue of the Smart!Splits Report identified this stock as a good post-split performer when it traded in the 160s. Even after a volatile week this stock continues to power ahead. To learn more about possible upcoming stock splits and how you can profit in today's market, subscribe to a FREE 2-week trial to the Smart!Splits Report by visiting: http://www.smartportfolio.com/freetrials AOL users click here ***************************************************************** 1. Friday's Market Action $ Change % Change Close Dow Jones Industrials +269.30 +2.39% 11522.56 S&P 500 +32.43 +2.31% 1435.88 Nasdaq +155.39 +4.17% 3882.52 Internet Stock Index +52.41 +6.76% 827.88 The Dow climbed to another record high while the Nasdaq racked up its biggest point gain ever to rebound at the end of a week characterized by extreme volatility. Lucent Technologies (NYSE:LU) sparked today's Nasdaq rally and simultaneously made history, becoming the most heavily traded stock in a single session ever on the NYSE. Shares of Lucent gained 1 3/4 (+3.37%) from Thursday's after-hours plunge following the warning issued by the company after Thursday's markets closed that profits for the world's largest telecommunications equipment maker would not meet analyst expectations. The announcement by Lucent, which was considered a company-specific issue, propelled the stocks of its rivals in the competitive telecommunications equipment market. Shares of Nortel Networks (NYSE:NT), a leading global supplier of telephone network services, jumped 26.30% (up 20 1/4) to 97 1/4, while shares of networking leader Cisco Systems (Nasdaq:CSCO) closed up 5 7/8 (+5.88%) to 105 7/8. Other telecom equipment stocks also advanced, with JDS Uniphase (Nasdaq:JDSU) jumping 20.16% (up 30 1/16) to 179 15/16 , Ciena Corp. (Nasdaq:CIEN) closing up 25.89% (up 11 7/8) to 57 3/4, and Tellabs (Nasdaq:TLAB) rising 2 1/4 (+3.53%) to 66 1/16. Today's market rebounds were bolstered by positive economic news, as the Labor Department reported that the December jobless rate held firm at 4.1% and that December's growth of U.S. jobs outside the farm sector was the largest in five months. While the announcement was a sign of the continued strong economy, it also set the stage for increased fear among investors that the Fed will raise interest rates when it meets in early February. The Fed has indicated that it is closely monitoring the job market as it considers whether to raise interest rates in an effort to cool the booming economy. Contributing to today's market gains was a resurgent drug sector, with Dow component Merck (NYSE:MRK) up 6 9/16 (+9.60%) to 74 15/16, Eli Lilly (NYSE:LLY) gaining 4 13/16 (+7.27%) to 71, Schering Plough (NYSE:SGP) moving up 5 1/16 (+11.79%) to 48, and Pharmacia & Upjohn (NYSE:PNU) rising 2 11/16 (+5.69%) to 49 15/16. Biotechs also performed well today with Amgen (Nasdaq:AMGN) gaining 6 7/8 (+11.25%) to 68, Biogen (Nasdaq:BGEN) rising 1 7/16 (+1.92%) to 76 3/8, Genentech (NYSE:DNA) up 8 7/8 (+6.93%) to 136 7/8, Immunex (Nasdaq:IMNX) rising 9 7/16 (+10.42%) to 100. Wal-Mart Stores (NYSE:WMT), the world's largest retailer, announced that it will team up with Silicon Valley venture-capital firm Accel Partners to form an Internet company, to be called Wal-Mart.com, which is expected to enhance the giant retailer's Web site and bring more of its shoppers online. The partnership is also seen as a larger sign of the move by leading retailers worldwide to become major players in the competitive e-tail (online retail) market. Investors reacted favorably to the news, anticipating a major IPO of Wal-Mart.com in the future, which sent shares of the Dow component rose 4 13/16 (+7.56%) to 68 1/2. Meanwhile, shares of e-tailers performed well, with Amazon.com (Nasdaq:AMZN) rising 4 (+6.10%) to 69 9/16, barnesandnoble.com (Nasdaq:BNBN) gaining 1 9/16 (+10.55%) to 16 3/8, and CDnow (Nasdaq:CDNW) edging up 9/16 (+5.81%) to 10 1/4, although E-toys (Nasdaq:ETYS) dropped 1 15/16 (-8.24%) to 21 9/16. Other big movers on the Dow helped drive the markets upward, with Proctor & Gamble (NYSE:PG) rising 8 5/8 (+8.00%) to 116 1/2, General Electric (NYSE:GE) closing up 5 21/64 (+3.66%) to 151, Johnson & Johnson (NYSE:JNJ) gaining 3 3/16 (+3.44%) to 95 3/4, Coca-Cola (NYSE:KO) rising 3 3/4 (+6.58%) to 60 3/4, and Honeywell (NYSE:HON) closing up 3 (+5.36%) to 59. 2. Internet and Tech Stocks For a FREE trial to SmartPortfolio.Com's in-depth analysis of selected Internet stocks, please visit: http://www.smartportfolio.com/freetrial AOL users click here While telecom stocks helped drive the Nasdaq higher, telecom investors were buzzing over the threat by Federal Communications Commission Chairman William Kennard that regulatory action would be forthcoming if the cable television industry and consumer electronics manufacturers fail to resolve a standards dispute that is holding up the availability of digital TV sets. The parties have yet to reach an agreement over an interface that would allow cable shows to appear on sets while protecting the programs from being illegally copied. Telecom stocks came in with mixed results, as #1 U.S. long-distance carrier AT&T (NYSE:T) rose 1 (+2.08%) to 49, Sprint Group (NYSE:FON) gained 9/16 (+0.89%) to 63 15/16, Winstar Communications (Nasdaq:WCII) closed up 1 1/2 (+2.21%) to 69 1/4, while Covad Communications (Nasdaq:COVD) fell 1 21/32 (-2.75%) to 58 1/2, Sprint PCS (Nasdaq:PCS) dropped 2 5/8 (- 2.78%) to 91 13/16. In other telecom news, McLeodUSA (Nasdaq:MCLD), a leading provider of local and long-distance telephone services, announced its intent to buy Splitrock Services (Nasdaq:SPLT), the operator of a nationwide, high- speed data network carrying over 2 billion minutes per month of Internet traffic, for approximately $1.75 billion in stock in its effort to expand its menu of offerings beyond voice telephone services. Shares of McLeodUSA edged up 11/16 (+1.31%) to 53 1/4, while shares of Splitrock jumped 21.75% (up 4 13/16) to 26 15/16. Today's tech stock action also saw RealNetworks (Nasdaq:RNWK) announcing its creation of an alliance with Universal Music Group, the world's biggest recording company, which will allow consumers to use RealNetwork's software to listen to music from Universal's wide array of artists. Under the agreement, Universal, a unit of Seagram Company (NYSE:VO), will distribute RealJukebox, the digital music player software developed by RealNetworks that lets users record and organize songs on a computer. Shares of RealNetworks rose 18 7/8 (+16.68%) to 132 1/16, while shares of Seagram edged lower 1/16 (-0.13%) to 48 5/8. MicroStrategy (Nasdaq:MSTR) closed up 10 1/8 (+5.06%) to 210 3/8, continuing its upward momentum gained from its 2-for-1 stock split announcement on January 4. The record date for the split is January 20 and the new shares will be issued on January 26, 1999. The most recent issue of the Smart!Splits Report forecasted the MicroStrategy split. To find out how to subscribe to a FREE 2-week trial to the Smart!Splits Report and learn about other potential stock splits, please visit: http://www.smartportfolio.com/freetrials AOL users click here Other big movers in the tech sector included: America Online (NYSE:AOL), which gained 4 1/4 (+6.18%) to 73 following news of its upcoming alliance with General Motors (NYSE:GM) to establish a link on the Internet portal that would provide product information to vehicle owners and prospective buyers; wireless communications giant Qualcomm (Nasdaq:QCOM), which gained 9 15/16 (+7.10%) to 150; Chipmaker Intel (Nasdaq:INTC), which rose 3 1/4 (+4.13%) to 82; Dell Computer (Nasdaq:DELL), which closed down 1 13/16 (-3.78%) to 46 3/16; MCI Worldcom (Nasdaq:WCOM), which remained unchanged at 47 3/16; and Sun Microsystems (Nasdaq:SUNW), which rose 3 7/8 (+5.70%) to 71 7/8. Leading Internet and tech stocks performed as follows: Company $ Change % Change Close Amazon (Nasdaq:AMZN) +3 15/16 +6.01% 69 1/2 America Online (NYSE:AOL) +4 5/16 +6.27% 73 1/16 Commerce One (Nasdaq:CMRC) -3/8 -0.20% 188 Cisco (Nasdaq:CSCO) +5 3/16 +5.19% 105 3/16 CMGI (Nasdaq:CMGI) +23 3/4 +9.49% 274 Dell (Nasdaq:DELL) -1 7/8 -3.91% 46 1/8 Ebay (Nasdaq:EBAY) -1 -0.74% 133 7/8 ExciteAtHome (Nasdaq:ATHM) +5/8 +1.63% 39 Exodus (Nasdaq:EXDS) +1/2 +0.58% 86 7/8 Intel (Nasdaq:INTC) +2 15/16 +3.73% 81 11/16 Juniper (Nasdaq:JNPR) +13 +4.17% 325 Lucent (NYSE:LU) +5/8 +1.20% 52 5/8 Microsoft (Nasdaq:MSFT) +63/64 +0.89% 110 63/64 Oracle (Nasdaq:ORCL) +5 3/4 +5.99% 101 3/4 Schwab (NYSE:SCH) +1 1/2 +4.08% 38 1/4 Qualcomm (Nasdasq:QCOM) +9 13/16 +7.01% 149 7/8 Qwest (NYSE:Q) +1 3/4 +4.73% 38 3/4 Yahoo (Nasdaq:YHOO) +39 1/16 +10.61% 407 1/4 3. Notable Earnings Announcements There were no notable earnings announcements today. For a calendar of recent and upcoming earnings announcements, visit: http://www.smartportfolio.com/earnings.asp AOL users click here 4. Notable Upgrades and Downgrades -- Upgrades - http://www.smartportfolio.com/upgrades.asp AOL users click here Nortel Networks (NYSE:NT) was upgraded by Lehman Brothers to buy from outperform and by SG Cowen to strong buy from buy. Shares of the communications equipment maker bolted 26.30% (up 20 1/4) to 97 1/4. DuPont (NYSE:DD) was upgraded by ING Barings to hold from sell. Shares of the chemical and bio sciences company edged up 1/8 (+0.17%) to 71 5/8. United HealthCare (NYSE:UNH) was upgraded by Bear Stearns to buy from attractive. Shares of the health care management company jumped 11.73% (up 6 7/16) to 61 5/16. Staples (NYSE:SPLS) was upgraded by Bear Stearns to buy from neutral. Shares of the office supply retailer rose 1 3/8 (+5.74%) to 25 5/16. SAP AG (NYSE:SAP) was upgraded by Morgan Stanley Dean Witter to outperform from neutral. Shares of the business application software maker surged 30.64% (up 13 3/4) to 58 5/8. McGraw-Hill (NYSE:MHP) was upgraded by Wasserstein Perella to strong buy from buy. Shares of the publishing company edged higher by 1/2 (+0.93%) to 54. Tiffany & Co. (NYSE:TIF) was upgraded by PaineWebber to attractive from neutral. Shares of the jewelry retailer gained 5 7/16 (+7.06%) to 82 7/16. -- Downgrades - http://www.smartportfolio.com/downgrades.asp AOL users click here Lucent Technologies (NYSE:LU) was downgraded by numerous brokerage firms, including, among others, Merrill Lynch (NYSE:MER) to near term neutral from near term accumulate, Salomon Smith Barney to neutral from buy, Lehman Brothers to neutral from buy. See related story above. Toys R Us (NYSE:TOY) was downgraded by Legg Mason to market perform from outperform. Shares of the toy retailer slipped 3/16 (-1.55%) to 11 15/16. -- Coverage Initiation http://www.smartportfolio.com/initiated.asp AOL users click here Dain Rauscher Wessels started coverage of the two major U.S. automakers, Ford Motor Co. (NYSE:F) with a strong buy rating anf General Motors (NYSE:GM) with a neutral rating. Ford shares climbed 3 3/4 (+7.37%) to 54 5/8 and General Motors shares rose 3 1/4 (+4.54%) to 74 13/16. Mortgage.com (Nasdaq:MDCM) was initiated by Bear Stearns with a neutral rating, as was E-LOAN (Nasdaq:EELN). Mortgage.com shares fell 1/32 (- 0.56%) to 5 9/16 and E-LOAN shares gave up 5/16 (-1.94%) to 15 13/16. Deutsche Banc Alex. Brown started coverage of a number of Internet health companies including PlanetRX.com (Nasdaq:PLRX) with a strong buy rating and Healtheon/WebMD (Nasdaq:HLTH) and Drugstore.com (Nasdaq:DSCM) with buy ratings. PlanetRX.com was up 3/4 (+4.72%) to 16 5/8, Healtheon/WebMD was up 4 3/16 (+12.34%) to 38 1/8, and Drugstore.com was up 3 1/8 (+10.25%) to 33 5/8. 5. Stock Splits To obtain the latest information on stock splits, please visit: http://www.smartportfolio.com/splits AOL users click here This chart shows the companies that will split their shares during the next 5 business days. The "Pay" column shows the payable date. The "Ex" column refers to the ex-date, the date on which the stock begins to trade at its split-adjusted price. The ratio refers to the number of split shares stockholders will receive (a 2:1 ratio means that stockholders will receive one additional share for each share they already hold). Company Pay Ex Ratio ColorMax Tech (Nasdaq:USEE) 1/7 1/10 2:1 Daktronics, Inc. (Nasdaq:DAKT) 1/7 1/10 2:1 Foundry Networks (Nasdaq:FDRY) 1/7 1/10 2:1 InterNAP Network Services (Nasdaq:INAP) 1/7 1/10 2:1 Pegasus Systems (Nasdaq:PEGS) 1/7 1/10 3:2 Red Hat (Nasdaq:RHAT) 1/7 1/10 2:1 Satyam Infoway (Nasdaq:SIFY) 1/7 1/10 4:1 Xcelera.com (AMEX:XLA) 1/7 1/10 2:1 AVT Corp. (Nasdaq:AVTC) 1/10 1/11 2:1 DoubleClick (Nasdaq:DCLK) 1/10 1/11 2:1 MapInfo (Nasdaq:MAPS) 1/10 1/11 3:2 TranSwitch (Nasdaq:TXCC) 1/10 1/11 3:2 CMGI (Nasdaq:CMGI) 1/11 1/12 2:1 Costco Wholesale Corp. (Nasdaq:COST) 1/13 1/14 2:1 Dynacq International (Nasdaq:DYII) 1/13 1/14 2:1 InterTAN, Inc. (NYSE:ITN) 1/13 1/14 3:2 6. IPO Commentary While the IPO market will kick into high gear in the coming weeks, it is currently still in hibernation as only a handful of IPOs are expected to come to market. Insurance and investment services giant John Hancock Financial Services (NYSE:JHF), one such upcoming IPO, announced that is has lowered the expected price range for its proposed IPO to $16 to $18 per share, from its $15 to $25 per share range that the company set in mid-December. The company expects that the IPO, which will be underwritten by Morgan Stanley Dean Witter & Co. (NYSE:MWD), will net $1.65 billion and, based on an initial price of $17 per share, John Hancock's initial market capitalization would total about $5.64 billion. Shares of other leading insurance and investment services companies performed well, with American International Group (NYSE:AIG) up 7 5/8 (+7.48%) to 109 1/2, Chubb (NYSE:CB) rising 3 1/4 (+6.07%) to 56 13/16, Aetna (NYSE:AET) gaining 3 9/16 (+6.56%) to 57 7/8, and Hartford Financial Services (NYSE:HIG) closing up 2 (+4.67%) to 44 13/16. For further information on IPOs expected to outperform in the next millenium, please go to http://www.smartportfolio.com/freetrial AOL users click here. 7. IPO Calendar For a calendar of upcoming IPOs and extensive information concerning the IPO market, please visit: http://www.smartportfolio.com/ipo AOL users click here. ************************Advertisement**************************** JDS Uniphase (Nasdaq:JDSU) Up 30 3/16 to 179 15/16 Today! JDS Uniphase soars over 20% -- a recent issue of the Smart!Splits Report identified this stock as a good post-split performer when it traded in the 160s. Even after a volatile week this stock continues to power ahead. To learn more about possible upcoming stock splits and how you can profit in today's market, subscribe to a FREE 2-week trial to the Smart!Splits Report by visiting: http://www.smartportfolio.com/freetrials AOL users click here ***************************************************************** ***************************************************************** PLEASE GIVE US YOUR FEEDBACK If you have any additional information that you would like us to include in our newsletter, any additional functionality added to our website, or any other comments in general, please let us know by clicking on the following link: http://www.smartportfolio.com/feedback ***************************************************************** ***************************************************************** ADVERTISE IN OUR NEWSLETTER Want to target an attractive demographic representing wealthy, astute, Internet-inclined investors? 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