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Charles Schwab & Co., Inc.
Email Alert Midday Market View(TM) for Friday, November 16, 2001 as of 1:00PM EST Information provided by Schwab Center for Investment Research and Bridge U.S. INDICES (1:00 p.m. EST) ---------------------------------- Market Value Change DJIA 9,851.98 - 20.41 Nasdaq Comp. 1,893.90 - 6.67 S&P 500 1,136.28 - 5.96 ---------------------------------- NYSE Advancing Issues 1,656 NYSE Declining Issues 1,301 NYSE Trading Volume 675 mln NASDAQ Advancing Issues 1,700 NASDAQ Declining Issues 1,615 NASDAQ Trading Volume 885 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 2.01% n/a 5-year note 4.26% - 22/32 10-year note 4.87% - 27/32 30-year bond 5.27% - 24/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ STOCKS LOWER IN LACKLUSTER TRADING U.S. equities were down marginally midday amid mixed economic releases and tepid earnings reports. Industrial production reflected continued weakness in the manufacturing sector, while inflation at the consumer level roughly matched expectations. Companies reporting earnings mostly met estimates, though forward guidance was cautious. As of 11:56 a.m. EST, the Dow Jones Industrial Average was down 0.1%, while the Nasdaq Composite Index was down 0.1%. The S&P 500 Index was down 0.4%. Financials and computer-related stocks paced the decliners, while communications equipment and drugs paced the advancers. Shares of PC giant Dell Computer (DELL,27,f1) were lower after it recorded 3Q net earnings of $0.16 per share, $0.01 higher than the First Call consensus, on a 10% decline in revenue. The company reported that it captured market share from its competitors amid a pronounced price war as PC demand slumped. Amid some analysts' concerns, CEO Michael Dell said, "the convergence of Windows XP, Pentium 4, low-cost broadband and wireless networking is creating a feature nucleus for a new upgrade cycle." Going forward, Dell forecast 4Q earnings of $0.16 per share, in line with the Street's consensus, and said it saw sales rising only slightly from 3Q levels. Electronics-testing equipment maker Agilent Technologies (A,24,f2) reported a fiscal 4Q loss of $0.60 per share, matching estimates, as demand for its equipment fell amid a slump in semiconductor orders and the telecommunications industry. The company said it expects flat sales over the next two quarters and a fiscal 1Q loss excluding charges of $0.40-$0.60 per share, versus the mean $0.49 per share loss consensus. Agilent also said it will eliminate another 4,000 workers and offer $1 billion in debt. Shares of Starbucks Corp. (SBUX,17.31,f1) were brewing lower after the company reported 4Q earnings of $0.14 per share, matching expectations, but lowered its earnings guidance for fiscal 2002. Citing "an uncertain economic environment," the coffee giant stated it now anticipates full-year profits of $0.54-$0.55 per share, down from the $0.56-$0.58 per share forecast the company made in July. A number of analysts' cut their views on the company following the news. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds were down midday, despite a brief reprieve following this morning's industrial production data. In another sign of the weakness plaguing the industry, industrial output for October dropped for a 13th-consecutive month, declining 1.1%, according to the Federal Reserve Board, its biggest one-month drop since 1990. Analysts per Dow Jones Newswires were expecting a 0.9% drop. Capacity utilization declined to 74.8, its lowest level since June 1983, from September's slightly upwardly revised 75.7, roughly matching expectations. In an earlier release, October consumer prices declined 0.3% versus the 0.2% drop forecast by Dow Jones Newswires, owing primarily to a huge drop in energy prices, according to the Labor Department. The core index, which excludes the volatile energy and food components, rose 0.2%, slightly more than the consensus forecast for a 0.1% rise. Energy prices declined 6.3%, the biggest drop in more than 15 years, and transportation prices slumped 2.2%. The relatively quiet inflation environment is generally bond-friendly and leaves the door open for further monetary easing if deemed necessary by the Fed. ---------------------------------------------------------------- WORLD MARKETS European markets were higher later in the day, with the Bloomberg European 500 index up 0.63% as of 11:56 a.m. EST. Energy and financials paced the advancers, while mining and beverages drove the decliners. Much of the lift to European equities could be attributed to a bounce in crude oil prices off yesterday's 2-1/2-year lows. On the economic front, inflation in the euro-zone remained tame as the consumer price index matched expectations, declining 0.1% in October and increasing 2.4% year over year. The euro was higher versus the dollar amid lackluster U.S. equity performance and marginal gains in European bourses. Jeffrey Reeve, 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.
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