|
|
Enron Mail |
Charles Schwab & Co., Inc.
Midday Market View(TM) for Tuesday, September 4, 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 10,119.49 + 169.74 Nasdaq Comp. 1,821.55 + 16.12 S&P 500 1,150.46 + 16.88 ---------------------------------- NYSE Advancing Issues 1,745 NYSE Declining Issues 1,180 NYSE Trading Volume 550 mln NASDAQ Advancing Issues 1,611 NASDAQ Declining Issues 1,707 NASDAQ Trading Volume 674 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 6-month bill 3.27% n/a 5-year note 4.52% + 13/32 10-year note 4.96% + 12/32 30-year bond 5.45% + 7/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ NAPM BLAST-OFF Markets were firing on all cylinders in early trading thanks to a better-than-expected National Association of Purchasing Management's survey that suggested some stabilization in the beleaguered manufacturing sector of the economy. Heading up the acquisition dominated headlines, Hewlett Packard's (HWP,20,f2) bid for Compaq Computer (CPQ,12.11,f2 & f4) did little to fuel the small rally in technology. As of 12:00 p.m. EDT, healthcare and pharmaceutical issues led advancers, while regional banks led decliners yet again. Shares of computer giant Hewlett-Packard were lower after the company announced that it has agreed to purchase rival Compaq Computer in a deal worth $25 billion in stock, as both companies look to enhance their competitiveness in an industry plagued by languishing sales and an ongoing price war. The acquisition will include 15,000 job cuts and Hewlett-Packard will own 64% of the combined company, with Compaq owning the remaining 36%. Shares of Dow component Johnson & Johnson (JNJ,56,f2) were trading higher after a clinical trial in Europe showed encouraging results for the company's new cardiovascular device that aids in the prevention of restenosis or the recurring blockage of arteries. The company has developed stents, which are small metal tubes that surgeons use to open arteries, coated with antibiotics. The clinical trial, which has lasted more than six months, showed patients who had received JNJ's Cypher stent had no incidences of arteries clogging for a second time. The enthusiasm in technology was tempered somewhat by Sanmina's (SANM,16.99,f1) announcement that its 4Q earnings would fall short of previous estimates. The company expects 4Q profits, excluding amortization and writeoffs, to come in at $0.01-0.02 per share, lower than the First Call mean consensus of $0.09 per share. Revenues are also expected to be lower as the company confronts the slowdown in capital spending. In energy news, Oklahoma-based Devon Energy Corp. (DVN,44,f2) has made an offer to purchase Canadian energy company Anderson Exploration Ltd. (AXN,25) for $3.4 billion, plus the assumption of $1.2 billion in debt, in a deal that would make the company the largest among independent North American exploration and production companies. Shares of Devon were lower, while Anderson traded higher on the news. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds, which declined following the release of this morning's NAPM survey, fell off a cliff as the rally in stocks heated up. The NAPM survey showed an unexpectedly large increase in August to 47.9, up from July's 43.6 level and above the Dow Jones Newswires forecast of 44. The increase reflects a big deceleration in contraction in the manufacturing segment of the economy. The prices paid component fell to 33.9 from July's 38.7 as inflationary pressures continue to subside. The production index rose to 52.2 from July's 46.4, the new orders index rose to 53.1 versus July's 46.3 and the employment index rose to 40.8 from July's 37.2 as the manufacturing sector appears to be stabilizing. ---------------------------------------------------------------- WORLD MARKETS European bourses got a shot in the arm following this morning's NAPM release. The Bloomberg European 500 Index was up 1.54% as of 12:00 p.m. EDT. Hewlett Packard's acquisition of Compaq sent stocks soaring overseas early, but gains were neutralized a bit by Ericsson's (ERICY,4.21,f1) warning that it sees no imminent recovery in the market for its products next year. Adding fuel to the fire in the depressed communications industry, both Marconi's (MONI,1.55,f1) CEO and chairman stepped down, and the company eliminated another 2,000 positions as Marconi now expects a first-half operating loss, owing to substantial writedowns for inventory and recent acquisitions. The company had previously expected a breakeven first-half. The euro extended its decline against the U.S. dollar on the heels of the better-than-expected NAPM numbers. William Johnson, Market Analyst ################################################################ Log in using the links below to: Access your account: https://investing.schwab.com/trading/start?SANC=CCBodyi&NeedCASelValue=Y View your Email Alert customization options: https://investing.schwab.com/trading/start?SANC=EAMyAlerts Perform research or request a market quote: https://investing.schwab.com/trading/start?SANC=Quotes Place a trade order: https://investing.schwab.com/trading/start?SANC=TradeStock To visit Schwab's home page, use this link: http://www.schwab.com/ ----------------------------------------------------------------- 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 Now you can receive graphics Email Alerts in HTML format, using helpful, full-color graphics and active Web links that connect you directly to information you want. Use the link below to log in and change your email format preference: https://investing.schwab.com/trading/start?SANC=EAEditEmailAddr ---------------------------------------------------------------- Notice: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel. (0801-11482) 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.
|