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Charles Schwab & Co., Inc.
Email Alert Midday Market View(TM) for Monday, November 19, 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 9,908.44 + 41.45 Nasdaq Comp. 1,913.24 + 14.66 S&P 500 1,143.08 + 4.43 ---------------------------------- NYSE Advancing Issues 1,637 NYSE Declining Issues 1,367 NYSE Trading Volume 645 mln NASDAQ Advancing Issues 1,843 NASDAQ Declining Issues 1,547 NASDAQ Trading Volume 1.0 bln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 2.00% n/a 5-year note 4.12% + 11/32 10-year note 4.78% + 15/32 30-year bond 5.22% + 23/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ STOCKS HIGHER MIDDAY U.S. equities were higher midday on the heels of better-than-expected economic data and predominantly positive equity news. October housing starts reflected a softening but still robust market for new home building, though building permits data was weaker. In equities news, Philips Petroleum (P,52,f2) and Conoco Inc. (COC,25,f2) announced a strategic merger, and Dow component Alcoa Inc. (AA,38,f2) said it would eliminate jobs in a cost-cutting move. Meanwhile, U.S. Treasuries were trading higher midday and European markets were posting gains late in the session. As of 11:55 a.m. EST, the Dow Jones Industrial Average was up 0.58%, while the Nasdaq was up 0.86%. The S&P 500 Index was up 0.47%. Computer related and retail issues drove the advancers while oil and semiconductors paced the decliners. Phillips Petroleum was trading higher after it agreed to purchase rival Conoco Inc. for more than $15 billion, creating the third largest U.S. oil company. Conoco shareholders will receive 0.4677 shares of the combined company, ConocoPhillips, for each of their original shares. Additionally, Phillips' CEO said the company will eliminate jobs following the merger in an effort to reign in costs and cut duplicate positions. The companies hope to close the deal by the second half of 2002. Shares of Alcoa Inc. were higher after the Dow component announced it would cut 6,500 workers, or 4.6% of its work force, and close plants in America and Europe in an effort to reduce expenses amid declining aluminum demand. The company said it would incur 4Q charges of up to $250 million as a result of the restructuring and that the decision was designed to "optimize Alcoa's manufacturing system after a recent series of acquisitions." Lowe's Companies (LOW,42) got a lift after it posted a 24% rise in fiscal 3Q net income to $0.32 per share, $0.01 ahead of the First Call $0.31 per share consensus forecast. Sales rose 21% to $5.45 billion, with same-store sales rising 4%. The company's CEO noted strength in all product categories across every geographic region, saying consumer traffic accelerated during the quarter. Lowe's expects fiscal 2002 profits of $1.24-$1.25 per share, ahead of the Street's $1.23 mean estimate. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Treasuries were higher midday, recouping some of last week's sharp losses, despite the stronger-than-expected housing starts data. Total starts for October fell 1.3% to a 1.552 million unit annual rate from September's revised 1.572 million unit pace. Analysts were expecting a 4.7% decline to a 1.500 million unit annual rate. Weakness was most noticeable in the West. Despite the unexpected resiliency in the housing market, buoyed by historically low interest rates, the more forward-looking building permits fell 3.6% in October, roughly matching expectations, on the heels of a revised 2.7% decline the prior month. Permits were previously reported as having dropped 3.0% in September. ---------------------------------------------------------------- WORLD MARKETS European markets were higher later in the day, despite a Bundesbank report reflecting sequentially flat 3Q German economic growth and a potentially weaker 4Q. Optimism that lower interest rates and falling crude prices will eventually stimulate economic expansion helped boost the Bloomberg 500 index, which was up 1.24% as of 11:55 a.m. EST. Telecoms and financials paced the advancers, while pharmaceuticals and foods led the decliners. In equities news, Microsoft Corp. (MSFT,66,f1) formally responded to European Union charges that it violated anti-trust laws in a written rebuttal addressing the Commission's objections. The euro was down against the U.S. dollar following weekend comments from hawkish European Central Bank officials hinting that they may not reduce euro-zone interest rates further. Crude oil was lower amid renewed concerns that Russia will offer nothing more in the way of OPEC concessions than a meager, symbolic production cut. 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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