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Charles Schwab & Co., Inc.
Email Alert Midday Market View(TM) for Thursday, October 25, 2001 as of 1:00PM EDT Information provided by Schwab Center for Investment Research and Bridge U.S. INDICES (1:00 p.m. EDT) ---------------------------------- Market Value Change DJIA 9,238.57 - 107.05 Nasdaq Comp. 1,704.26 - 27.28 S&P 500 1,071.97 - 13.23 ---------------------------------- NYSE Advancing Issues 1,225 NYSE Declining Issues 1,699 NYSE Trading Volume 562 mln NASDAQ Advancing Issues 1,306 NASDAQ Declining Issues 1,916 NASDAQ Trading Volume 917 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 1.99% n/a 5-year note 3.73% - 6/32 10-year note 4.53% - 6/32 30-year bond 5.28% - 5/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ STOCKS SUFFER MORE ECONOMIC BLUES Stocks slid at the open and remained firmly in negative territory following this morning's mostly ominous economic releases, as the fallout from the September attacks continues. Durable goods orders dropped sharply, lending further support to the notion of a contraction in 3Q, while first-time jobless claims hit their highest level in almost a decade. Existing home sales also weakened as prospective buyers put large purchases on hold. As of 11:54 a.m. EDT, the Dow Jones Industrial Average was down 1.3%, with the Nasdaq Composite Index lower by 2%. The S&P 500 Index was down 1.3%. Retailing, software, semiconductor and communication stocks paced the decliners, while oil-related, healthcare and transport issues were widely higher. Shares of American International Group (AIG,81) were lower after the company posted an 81% decline in 3Q earnings as a result of the terrorist attacks, its acquisition of American General Corp. and debt write-offs. Excluding the charges, but including the $820 million in World Trade Center claims, the insurance giant posted operating earnings of $0.55 per share, ahead of the First Call consensus estimate of $0.54 per share. Shares of Electronic Data Systems (EDS,64,f2) were higher after the computer systems consulting company posted 3Q earnings, excluding items, of $0.69 per share, $0.01 ahead of the Street's mean estimate. CFO James Daley said he expects the company to continue to grow earnings in the double-digit range, and EDS remains comfortable with the Street's 4Q consensus earnings forecast of $0.78 per share. Long distance and data services company WorldCom Group (WCOM,12.32,f1) reported a 41% decline in 3Q profits to $0.16 per share, matching the First Call consensus forecast. Revenues rose 12%, boosted by growth in the company's data and Internet services segments, and the company's CEO, Bernard Ebbers, said he expects WorldCom's growth segments to gain market share, despite the current economic malaise. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds held on to gains at midday following the release of largely pessimistic economic data this morning. Durable goods orders for September fell 8.5%, according to the Commerce Department, much worse than the expected 1.3% decline per Dow Jones Newswires, suggestive of a potential 3Q economic contraction. Excluding transportation, orders fell 5.5% as aircraft orders plummeted 29%. Excluding defense, orders fell 9.1%, while defense capital goods orders rose 4.6%. Initial jobless claims rose by 8,000 to 504,000 for the week ended Oct. 20, according to the Labor Department, the first time above the 500,000 level since 1992. Analysts were looking for an increase to 500,000. The four-week moving average of claims rose to 505,000, a 10-year high, and continuing claims for the week ended Oct. 13 increased to 3,654,000, an 18-year high. The 3Q employment cost index rose 1.0%, slightly above the Dow Jones Newswires forecast of a 0.9% increase. Year over year, the increase was 4.1% through September, above the 3.9% year-over-year reading through June. Most of the increase was attributed to a 1.6% rise in benefits costs for the quarter, while wages and salaries rose 0.8% versus 2Q's 1.0% rise. The government said the data was not distorted by the Sept. 11 attacks. Existing home sales plunged in September, down 11.7% to a seasonally adjusted annual rate of 4.89 million units, less than the Bloomberg consensus forecast of a decline to a 5.20 million rate. The drop was the largest since 1995 as consumers pulled back following the attacks. According to the National Association of Realtors, the inventory of unsold homes rose to a 5.4-month supply from August's 4.8 reading. ---------------------------------------------------------------- WORLD MARKETS Technology stocks led European bourses lower late in the session following the dismal economic data in the U.S. and the European Central Bank's decision to leave the benchmark lending rate unchanged at 3.75%. The Bloomberg European 500 Index was down 2.04% as of 11:54 a.m. EDT. European Central Bank President Wim Duisenberg said, "If there were to be a further improvement in inflation prospects, then that would provide for further room to maneuver on monetary policy." The euro was virtually flat against the U.S. dollar in choppy trading following this morning's uninspiring economic situation. ================================================================ 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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