Daily market summary and stock picks

THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market

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MARKET SUMMARY FOR TUESDAY JUNE 13TH. 2000

DOW INDUSTRIAL: 10621.84 = +57.63

NASDAQ: 3851.06 = +83.15

S & P 500: 1469.48 = +23.48

MOST ACTIVE STOCKS & SECTORS

The markets rallied after the retail sales data ease inflation and interest rates fears (at least till tomorrow). Gainers included: Alpharma inc, AMD, American Express, AmeriSource Health, Ampal Am Israel, Applied Materials, Ariba, Bellsouth, BroadCom, Cisco Systems, Citigroup, Citrix System, Clorox, Commerce One, Compaq, Computer Associates, Conseco, Dell, eBay, EchoStar Communication, Eli Lilly, EMC Corp, Equant NV, Ericsson, GE, Goldman Sachs, Home Depot, Hotel Reservations, Intel, JDS Uniphase, Johnson & Johnson, Keithley Instruments, Kemet Corp, Kmart, Lands End, Lucent Technologies, Martha Steward, Maytag, Merck, Micron Tech, Microsoft, Microstrategy, Morgan Stanley Dean Witter, Mothers Work, National Power Plc, Nexell Communications, Nortel Networks, Oracle, Pepsico, Pfizer, Physiometrix, PurchasePro.Com, Qwest Communications International, Rambus, Reed International Plc, SDL inc, Solectron, Vishay Intertech, Wal-Mart, Worldcom, Yahoo!, and Z Tel Technologies.

MAIN REASONS FOR ACTIVITY

US Retail Sales for May declined by 0.3%, well above expectations. The April figures were also revised downwards from 0.2% decline to a 0.6% decline. This is the first back to back decline in sales since mid 1998. Interest rates sensitive goods like Building Materials, Automobiles, and Automobile Parts had a higher drop of 1.5% each, while retail stores posted a modest gain. What does this mean? The economy is showing strong signs of slowing, and the Federal Reserve might have second thoughts on rate tightening. For more on Federal Reserve policy, check our Federal Reserve Monetary Policy Analysis page. To comment on this or the Federal Reserve, visit our NEW and EXPANDED message boards here.
Prudential Volpe Technology Group reiterated its "strong buy" recommendations for PurchasePro.Com, a B2B player. Prudential also raised the price target for PurchasePro to $100 a share! PurchasePro.Com closed at 39 7/8.
Computer Associates was upgraded by First Albany, while Donaldson Lufkin Jenrette (DLJ) reiterated its "buy" recommendation.
BroadCom is paying $440 million for the remaining 87% of Innovent Systems, a high performance wireless data communications developer.
Martha Steward Living Omnimedia plans to expand within the company's various divisions as opposed to licensing out its name, stated Martha Steward, founder and namesake.
Paine Webber initiated coverage of Clorox and raised its price target to $50 a share. Clorox closed at 43 1/2.
Solectron was upgraded by AG Edwards.
Hewlett Packard was downgraded by Sanford Bernstein.
Bellsouth is increasing its stakes in Colombian wireless company Celumovil SA to 50.35%. Under the agreement, Bellsouth will acquire the 16.55% of Celumovil held by AT&T Wireless and Chase Manhattan International Finance Ltd., while Celumovil acquires Cocelco, a major competitor with over 200,000 users, for $370 million and assume $200 million in debts. Colombia is South America's second most populous nation after Brazil.
DB Alex Brown initiated coverage on JP Morgan and Goldman Sachs. DB Alex Brown also set the price targets for Goldman Sachs at $107 a share (it closed up at $85 3/16), and for JP Morgan at $152 a share (it closed down to $129 9/16).
Conseco gained over12% after the Dow Jones News Service reported that Gary Wendt, former head of GE's powerful financial services unit, GE Capital, will likely take the CEO job at Conseco.
Equant NV, a Dutch Telecommunications company, gained over 15% on rumors that France Telecom and Global Crossing are eyeing it.
US District Judge Thomas Penfield Jackson refused to make a quick ruling on Microsoft's stay motion until the software giant filed its notice of appeal. In so doing, Judge Jackson is siding with the Government which requested that condition in the Government's attempts to expedite the case straight to the US Supreme Court. The Government is worried that following the normal channels will be in favor of Microsoft, which won a 1998 anti-competition ruling before the US Circuit Court of Appeals for the District of Columbia (DC). Microsoft filed the notice of appeal with Judge Jackson, and another stay motion to the US Circuit Court of Appeals for DC on top of the one filed with Judge Jackson. What do you think? We appreciate your comments at NEW and EXPANDED message boards. So, click here to post your comments on this topic or other topics.
NOTE: Due to the immense popularity this column has received recently and the willingness of our guest to communicate with each other, we have expanded our message boards so as to serve you better. Please check out (and post on) our NEW expanded message boards here.

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

The markets will stage a rally if the Consumer Price Index (CPI) data shows even benign data. The "Beige book" report that will be released late afternoon will determine the closing market figures.
STOCKS TO WATCH NEXT MARKET DAY: Ariba, Commerce One, iBasis, JDS Uniphase, Microsoft, Motorola, Sonus Networks, and Yahoo!
Biotechnology, Technology (Software and Networking stocks), and Telecommunications stocks are still our premiere picks.
Expect the major Internet Portal sites to perform very well.
Internet holding and capacity (storage) companies will do very well (check out our Quarterly forecasts for other picks).

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Altera, Alysis Technology, Amdahl, Amgen, Anaren Microwave, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Arrowpoint, Ask Jeeves, AudioCodes Ltd., Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centillum Communications, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, Immunex, Impsat Corp., Informix, Infosys Technologies, Inktomi, inSilicon, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Linear Technology, Looksmart, Luminex, Metasolv Software, Metrix One, Microsoft, Neoforma.Com, Net2Phone, Netsolve, New Tel, Niku Corp, Novellus System, Numerical Technologies, ONI Systems, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Palm, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, RiverDeep Group Plc., Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sonus Networks, Stanford MicroDevices, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, UTStarcom, Va Linux, Venture Catalyst, Versata, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, WorldCom, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, AT&T Wireless Group, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Celera Genomics, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Kroger Co, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, Philip Morris, Price Communications, Provident Bank, Prudential, Safeguard Scientifics, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

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MARKET SUMMARY FOR MONDAY JUNE 12TH. 2000

DOW INDUSTRIAL: 10564.21 = -49.85

NASDAQ: 3768.04 = -106.80

S & P 500: 1445.99 = -10.96

MOST ACTIVE STOCKS & SECTORS

The market was gripped by interest rate hike fears again. Technology stocks were the most hit as their future revenues come to question. Gainers included: Aetna, Caldera System, CDI Corp, Conseco, Cooper Cameron, Corning, Eli Lilly, ExxonMobil, Finova Group, Galileo International, Geron, Humana, iBasis, IBM, Intraware, JDS Uniphase, JP Morgan, Juniper Networks, Keithley Instruments, Lucent Technologies, Microvision, National Oilwell, Nextel, Nokia, Nortel Networks, Onvia, Oracle, Owens & Minor, Payless Shoes, PCorder.Com, PE Corp-Celera, Philip Morris, Qualcomm, Rite Aid, SciQuest, SDL inc, Skeechers USA, Sonus Networks, Staples, Sun Microsystems, Vector Group Ltd., Ventro, Wellpoint, Wiser Oil, and Worldcom.

MAIN REASONS FOR ACTIVITY

Business to Business (B2B) companies had a very strong day due primarily to deals announced and the heavy buzz over the weekend about B2B stocks. Deals in B2B announced today include: Intraware, a B2B player, is paying $24 million for Janus Technologies. Onvia.Com, a B2B player, is paying $21 million for Zanova, an e-commerce applications developer.
Corning, a fiber optic company, announced that it will beat fiscal Q2 earnings estimates by at least 9 cents a share. Corning rose $21.62/share; Fiber optic networking companies like Juniper Networks and Sonus Networks also gained on the news.
PE Corp-Celera and Geron announced plans to cooperate in identifying and assigning genes that are necessary in early human development.
Hollywood Entertainment, the major video rental chain, is closing down its online outlet Reel.Com due to a lack of cash to establish the brand.
Northern Technology Fund had positive comments on JDS Uniphase in the Sunday issue of the New York Times.
Microsoft, DirectTV, and Thomson Multimedia are to market a system to make TV more interactive and personalized. The new Venture will use Microsoft's Ultimate TV service.
Caldera Systems will provide Linux Software for IBM's portable computer due Q3.
Citrix Systems continued its blood-letting today after the company announced that it will miss First Call's fiscal Q2 estimates by a whopping 50% or more! Citrix lost $19.19, or 47%, to close at $22. Citrix's trading volume was heavy at Ten times (10x) higher than normal.
Health Maintenance Organizations (HMOs) closed higher after the US Supreme Court ruled that HMOs can't be sued for offering Doctors incentives to cut cost.
iBasis' networks will now be used by China's major wireless carrier, China Mobile Telecommunications Corp. to route its voice and fax traffic.
Motorola's Network Solutions Sector (NSS) has won two, $65 million Global System for Mobile (GSM) contracts in the Chinese provinces of Hubei and Guangxi.
Oil stocks and Futures prices closed higher today after Saudi Arabia, the premier OPEC producer, revealed that it hasn't made up its mind to increase production or not. OPEC meets next week (June 21). July crude oil futures jumped $1.50 to close at $31.74 a barrel.
COMPANY TO WATCH: On May 31st. we introduced a New York City upstart company called Odigo that has a software which allow AOL Instant Messages (AIM) users to communicate with ICQ users, both AOL units. Odigo's service was blocked by AOL on June 11th. AOL implied that Odigo users were hacking into their servers. Odigo promises that AOL hasn't seen the last of them. Odigo now joins the ranks of AT&T, Microsoft, Prodigy, and Yahoo! who have all been blocked by AOL. The Instant Messaging game has now gone as far as congressional hearings. We will keep you up to date.
Please check out our NEW message boards here.

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

The markets will stage a rally on the eve of the Consumer Price Index (CPI) release, if all is held constant.
STOCKS TO WATCH NEXT MARKET DAY: Ariba, Commerce One, iBasis, JDS Uniphase, Microsoft, Motorola, Sonus Networks, and Yahoo!
Biotechnology, Technology (Software and Networking stocks), and Telecommunications stocks are still our premiere picks.
Expect the major Internet Portal sites to perform very well.
Internet holding and capacity (storage) companies will do very well (check out our Quarterly forecasts for other picks).

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MARKET SUMMARY FOR FRIDAY JUNE 9TH. 2000

DOW INDUSTRIAL: 10617.71 = -51.01

NASDAQ: 3875.34 = +49.78

S & P 500: 1457.32 = -4.35

MOST ACTIVE STOCKS & SECTORS

The NASDAQ closed higher after the Producer Price Index (PPI) gave mixed signals. The Dow lost over 50 points as a parade of blue chip stocks issued earnings and revenue warnings one after the other. Gainers included: 3Com, ADC Telecommunication, Agilent Technologies, AirNet Communications, Ampal Am Israel, Applied Materials, Atmel Corp, California Amplifier, Cendant, Ciena Corp, Cisco Systems, Community Health Systems, Costco Wholesale, DeltaThree.Com, Digital Island, Fairchild Semiconductor, FVC.Com, Global Crossing, GoAmerica, Intel, JDS Uniphase, Keithley Instruments, Martha Steward, MicroStrategy, MP3.Com, MyPoints.Com, Nokia, Nortel Networks, Oracle, Palm Computing, PE Corp-Celera, Pfizer, Pohang Iron & Steel, Praecis Pharmaceutical, Qualcomm, Quokka Sports, Raytheon, Reader's Digest, Steelcase, Sun Microsystems, Technitrol, Tellabs, Transkryotic Therapies, Turnstone Systems, Ultrak, Vector Group, Vitesse Semiconductor, Worldcom, and ZDNet.Com.

MAIN REASONS FOR ACTIVITY

The Commerce Department reported that, the Producer Price Index (PPI), a measure of inflation in manufacturing, was flat in May. Core PPI, which excludes the volatile energy and food sectors, rose on 0.2% in the same period. Analysts unanimously dismissed these figures for two basic reasons: The unexpected drop in oil prices which the PPI reflected is no longer the case; Capacity utilization and raw materials prices have risen sharply lately, something the report didn't capture. The consensus is, the Federal Reserve will ignore these figures in making monetary and interest rates policies. The NASDAQ rose on the news, despite the PPI's benign figures. For more on recent (other) economic data and possible Federal Reserve actions, visit our Federal Reserve Monetary Policy Analysis page.
Blue chip stocks like EDS, H&R Block, McDonald's, and Mylan Laboratories were issuing earnings and revenue warnings. Adding to Procter & Gamble's announcement yesterday, the Dow gave in as funds moved from blue chips NYSE to Technology-heavy NASDAQ, thus pulling the Dow with it.
PE Corp-Celera Genomics announced that it has completed the acquisition of privately held Paracel, a leading maker of advanced Genomic & text analysis supercomputing technologies.
Paine Webber initiated coverage of ADC Telecommunications, Ciena Corp, and Tellabs, all telecommunications equipment makers.
MP3.Com has reached a settlement with Warner Music Group and Germany's BMG, two of the five biggest music conglomerates. Under the agreement, MP3.Com will pay each $20 million, and pay them fees for every music of theirs downloaded.
Turnstone Systems gained 34 3/8, or 25.8%, to close at 167 5/8, after Goldman Sachs raised its earnings estimates by a whopping 32 cents a share!
FVC.Com, a video networking solutions company, received a $27 million investment from Microsoft cofounder Paul Allen's Vulcan Ventures. This will give Vulcan a 16% stake in the company.
Rumors are that MicroStrategy is nearing a capital infuse deal worth $100 million. MicroStrategy's shares rose more than 18 points today, and the stock have more than doubled this week. MicroStrategy is still gaining in after hours trading.
Chase Manhattan revised its fiscal year 2000 earnings forecast down by 29 cents a share, and its fiscal Q2 earnings down by 24 cents a share. Chase closed lower.
3Com has appointed James R. Long, a former executive at Nortel Networks, Rolm, and IBM, to its board effective immediately.
Quokka Sports, the leading online sports content provider, jumped 44% after announcing that, it is acquiring the 29% stake that NBC has in Golf.Com. NBC is Quokka's online olympic coverage partner.
Citrix Systems lost about 22% after being downgraded by Dain Rauscher Wessels. Citrix is gaining in after hours trading.
Palm Computing, the world's largest maker of handheld computers, outlined its market strategy on penetrating the lucrative Japanese market today. Palm intends to broaden the market and services, instead of trying to take away customers from other players. Sharp's Zaurus and Casio's Cassiopeia control over 60% of the Japanese market, while Palm has around 18%.
California Amplifiers' fiscal Q1 earnings beat estimates by One cent a share.
Amgen is suing Transkaryotic Therapies. Amgen claims that Transkaryotic's Anemia-fighting drug infringes on the trademark of its epogen. Trade was halted on Transkaryotic pending news, but not before it added 11 3/16, or 35%, to close at 42 7/8.
Merrill Lynch raised the price target on Fairchild Semiconductor.
Please join some of our ongoing discussions here.

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

The markets will ease after the broad rejection of the PPI figures sink in over the weekend. Blue chip stocks are scaring investors, and that is good news for technology stocks!
STOCKS TO WATCH NEXT MARKET DAY:
Biotechnology, Technology (Software and Networking stocks), and Telecommunications stocks are still our premiere picks.
Expect the major Internet Portal sites to perform very well.
Internet holding and capacity (storage) companies will do very well (check out our Quarterly forecasts for other picks).

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MARKET SUMMARY FOR THURSDAY JUNE 8TH. 2000

DOW INDUSTRIAL: 10670.11 = -142.75

NASDAQ: 3825.56 = -13.70

S & P 500: 1461.67 = -9.69

MOST ACTIVE STOCKS & SECTORS

The markets closed lower on the eve of the all important Producer Price Index (PPI) release. Technology heavy NASDAQ lost due mostly to Microsoft losses, while the Dow took a beating due to the combined losses of Microsoft and Procter & Gamble. Gainers included: ADC Telecommunication, Agilent Technologies, AMD, Applied Micro Circuits, Atmel Corp, Breakaway Solutions, Central Newspaper, Chordiant Software, Cisco Systems, Data Critical, Dell, Echostar Communication, Excite@Home, Exodus Communication, Fluor Corp, InfoSpace, Ingram Micro, Interlink Electronics, Intermedia Communication, JDS Uniphase, Keithley Instruments, K-V Pharmaceutical, McClatchy Co, Merix Corp, Micron Tech, MicroStrategy, Mitel Corp, MTI Technology, National Semiconductor, NBCI Automatic, Network Appliance, Network Equipment Technologies, Nortel Networks, OneMain.Com, Oracle, Pepsico, Pfizer, Philip Morris, Pilot Network, Precision Drill, Qualcomm, Qwest Communication International, Schering Plough, Stanford Microdevices, Steward Information Services, Superconductor Tech, Verisign, Viasystems Group, ZDNet.Com, Ziff Davis.

MAIN REASONS FOR ACTIVITY

Procter & Gamble (P&G) dropped a bombshell again today. P&G gave an earnings warning that its fiscal Q4 earnings will be flat, compared with a year ago Q4. First Call estimates were expecting 9 cents a share above last year's Q4. The company also announced that, Durk Jager, its Chairman, CEO and President for 17 Months will retire effective July1. Alan Lafley will be CEO, President and Director effective immediately. P&G lost heavily today, and pulled the Dow (and some Blue Chips) down with it.
Microsoft filed a motion of stay late Wednesday to suspend the recommendations of Judge Jackson's ruling. US District Judge Jackson is the same one who will hear the motion, and he is expected to deny the stay. That opens the door for Microsoft to file an array of appeals with the Court of Appeals for the District of Columbia (DC). This Court of Appeals ruled in favor of Microsoft in 1998 when the company was accused of anti-competitive practices by bundling its Internet Explorer Browser with the Windows Operating System (OS). Fearing this, the Justice Department and the 19 states are seeking to move the case directly to the US Supreme Court, thus by passing the DC Court of Appeals. Microsoft and its rivals all closed lower today.
US Jobless Claims for week ending May 27th. rose higher-than-anticipated to 309,000. This is the third week in a row that jobless claims have been rising. What does this all mean? Taking this data and the other recent economic data releases, the economy seem to be slowing down. Tomorrow's Producer Price Index (PPI) is expected to show a slowing economy. For more on recent economic data and possible Federal Reserve actions, visit our Federal Reserve Monetary Policy Analysis page.
Earthlink, the second largest Internet Service Provider (ISP), is paying $308 million for OneMain.Com, a rural ISP that has customers mostly in the Southeastern US.
Central Newspapers, publishers of the Arizona Republic and the Indianapolis Star, gained over 65% after the Phoenix based company put itself up for sale at about $60 a share. Central was upgraded by Morgan Stanley Dean Witter. Central closed at $52 a share.
EchoStar Communications got a boost today after a Lehman Brothers' report considered the company a great buy at current prices. Lehman also reiterated it "buy" recommendation for EchoStar and Cisco Systems.
AMD and Atmel Corp were upgraded by Chase H&Q.
Merix Corp. gained over 22% after it announced that its fiscal Q4 earnings will beat forecast by at least 16 cents a share, almost doubling the estimate from First Call!
Oracle and WebMethods are teaming up to provide rapid-deployment solutions for Business-to-Business (B2B) exchanges worldwide.
Mitel Corp, a Canadian Chip and communication systems developer, is paying US$202 million for Vertex Networks, a chip maker for networks, in attempts to increase its Internet Market share.
The board of Fluor Corp. has agreed to splitting the company into two. The New Fluor Corp. will get the engineering and construction units, while Massey Energy Corp. will get the Coal mining operations.
Please join some of our ongoing discussions here.

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

The Producer Price Index (PPI) will show a slowing economy, and the market will mount an aggressive rally.
STOCKS TO WATCH TOMORROW:
Biotechnology, Technology (Software and Networking stocks), and Telecommunications stocks are still our premiere picks.
Expect the major Internet Portal sites to perform very well.
Internet holding and capacity (storage) companies will do very well (check out our Quarterly forecasts for other picks).

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MARKET SUMMARY FOR WEDNESDAY JUNE 7TH. 2000

DOW INDUSTRIAL: 10812.86 = +77.29

NASDAQ: 3839.26 = +82.89

S & P 500: 1471.36 = +13.52

MOST ACTIVE STOCKS & SECTORS

The markets rallied for an assortment of reasons today (see below). Gainers included: AMR, AOL, Applied Materials, AT&T, Block Drug, Broadvision, Cabot Microelectronics, Caminus Corp, Cisco Systems, Citigroup, CMGI, Corel, CyberOptics, Dell, Delta, EMC Corp, Ericsson, E*Trade Group, Extended System, Gabelli Asset, GE, Global Crossing, Hewlett Packard, HotJobs.Com, IBM, Immunex, Infineon Technologies, Internet Pictures, GM, JDS Uniphase, Juniper Networks, KLM Royal Dutch Airline, Knight Trading Group, Korea Telecom, Lands End, London Pacific, Microsoft, MicroStrategy, MP3.Com, NetCentives, Nokia, Nordstrom, OMI Corp, Oracle, Orbital International, Pfizer, Philip Morris, Qualcomm, Quiksilver, Radio Shack, Ramtron International, RedHat, Rite Aid, Sun Microsystems, Tele Celular Sul Part. SA, Texas Instruments, Vail Resorts, Waddell Reed, Worldcom, and Yahoo!

MAIN REASONS FOR ACTIVITY

IBM gained over 7 points after Goldman Sachs analyst Laura Conigliaro made positive comments on its earnings growth. This, and the pending ruling on Microsoft rallied Technology stocks.
US District Judge Thomas Penfield Jackson has ruled that Microsoft should be broken into two companies. The ruling called for breaking up the Operating Systems for PCs, TV set-top boxes, Handheld computers and devices into one unit. The Software and Internet properties are to be placed into another unit. The breakup is to last 10 years. The Judge also wants restrictions placed on Microsoft's business practices in 90 days, and Microsoft is to submit a compliance plan about the breakup in four months. Judge Jackson stated that Microsoft have "proved untrustworthy" and "unwilling to accept" the fact that it broke the law. Microsoft will have 60 days to file an appeal. In a taped reply, Microsoft Chairman Bill Gates made it clear his company's intention to fight the ruling. Microsoft trade volume was heavy all day. Microsoft and its rivals all closed higher, and Microsoft is still gaining in after hours trading.
US Consumer Credit grew $9.3 billion in April. The March figures were revised upward from a $9.1 billion growth to $10.6 billion. Most of the increased borrowing is from low income groups. Lenders have tightened lending as their fears increase.
Rumors are that, Nortel Networks is considering using Juniper Networks' Internet routers, instead of Nortel manufacturing theirs.
British Airways and KLM Royal Dutch Airlines are discussing a merger, the two Airlines confirmed. Donaldson Luftkin and Jenrette (DLJ) initiated coverage of KLM.
Rumors are that, Delta and AMR, American Airlines' parent, are in merger talks.
OMI Corp was upgraded by ING Barings.
DLJ upgraded and raised the price target on Knight Trading Group, a market maker. DLJ also had positive comments about Online Brokers, thus pushing most of them to close higher.
Qualcomm is to work with a Chinese company to develop equipment with Qualcomm's Technology. Meanwhile, Qualcomm is still negotiating with the Chinese government on its Telecom equipment sell to Chinese Telecoms.
Orbital International, an electronics components maker, has signed a letter of intent to merge with Homing, a technology and Internet company.
MP3.Com gained over 30% on rumors that it is nearing a settlement agreement with Warner Music Group, a Time Warner unit, on copyrights infringement issues.
Rite Aid, the huge but troubled pharmacy chain, reported that same store sales rose a whopping 6.6% for the five weeks ended May 31st.
ABN Amro downgraded Intel.
The