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 WEDNESDAY JULY 12TH. 2000

DOW INDUSTRIAL: 10783.76 = +56.57

NASDAQ: 4099.59 = +143.17

S & P 500: 1492.92 = +12.04

MOST ACTIVE STOCKS & SECTORS

The markets rallied as Yahoo! led Technology, Internet stocks, and the NASDAQ above the 4000 mark. Blockbuster acquisitions, earnings surprises, and future earnings forecasts also helped. Gainers included: 3Com, Altera, Amazon.Com, Ameritrade, Angeion Corp, AOL, Applied Materials, Aquila Biopharmaceuticals, Ariba, AVX Corp, Biogen, Broadvision, Cellpoint inc, Charles Schwab, Childrens Place Retail, ChinaDotCom, Cisco, Citizens Communications, CNet Networks, Commerce One, Compaq, Covance, Cypress Semiconductor, Dell, Ericsson, E*Trade Group, Exodus Communications, GE, Finova Group, Gemstar International, Global Crossing, GoTo.Com, Intel, Intermedia Communications, International Paper, JDS Uniphase, Lexmark International, Lucent, Manufacturers Services, Micron Tech, Microsoft, Motorola, Nokia, Nortel Networks, Novellus, Oracle, Palm, Paine Webber, PMC-Sierra, Qualcomm, Quantum Effects Devices, Rambus, Raymond James, Silicon Graphics, T/R Systems, Venator, WebTrends, Worldcom, Xoma Ltd, and Yahoo!

MAIN REASONS FOR ACTIVITY

Global Crossing is selling its web hosting business to Exodus Communications for $3.7 billion. Global Crossing was also upgraded by Merrill Lynch to a "near term buy" recommendation. Global Crossing gained over 10%.
UBS AG, the global Swiss Banking company, is paying $10.8 billion for Brokerage house Paine Webber Group. Brokerage stocks were lifted by the news, and Paine Webber gained about 34%.
PMC-Sierra is paying $2.3 billion to acquire Quantum Effects Devices, a microprocessor maker. PMC gained 6%, while Quantum gained over 30% to close at 78 15/16.
CNet Networks gained about 36% after announcing that its Data Services unit continues to sign up customers at record rates. The unit now has about 300,000 customers under management.
Motorola reported that its fiscal Q2 earnings met estimates. Over the year Q2 sales nearly doubled due to increased Broadband sales.
GoTo.Com announced that it will be providing search services for AOL's Netscape. News about GoTo.Com joining the Coveted Russell 2000 Index since July 1st. also helped.
Chase H&Q upgraded Childrens Place Retail Stores to a "strong buy" recommendation.
Yahoo!, after reporting earnings yesterday that beat estimates (see yesterday's column), closed a whopping 19% higher and still gaining in after hours trading. Yahoo! was also upgraded to a "strong buy" by Thomas Weisel.
Intermedia Communications gave an earnings warning for fiscal Q2. Intermedia also announced that it is exploring options to sell its corporate web hosting unit, Digex. Separately, Digex was upgraded to a "strong buy" by DB Alex Brown. Meanwhile, Intermedia was downgraded by Salomon Smith Barney to "neutral", CS First Boston to "buy", CIBC World Markets to "buy", and CE Unterberg to "buy" recommendations. Intermedia closed regular trading up 5.08% and still gaining in after hours trading!
Caldera Systems, one of the most promising Linux developers, was downgraded by Bear Stearns to a "neutral" recommendation.
AFTER CLOSE: Ariba, one of the dominant forces in B2B eMarketplace, reported fiscal Q3 losses of 5 cents a share, 3 cents a share less than First Call analysts estimated. Over the year Q3 revenues rose a whopping 578% from $11.9 million last year to $80.7 million. Ariba also reported that since fiscal Q2 of this year, its revenues have doubled and it has signed over 100 new deals. Ariba is rising in after hours trading. To read more on our outlook of B2Bs like Ariba, visit our quarterly forecast section by clicking here.
JUST A NOTE: CS First Boston has filed a lawsuit against 10 people who posted comments on Yahoo! message boards complaining about the poor recommendations one of their analysts made about a stock. Apparently, the analyst had negative comments about Elan Corp, which ended up being a star performer. Give us your viewpoints on this subject, or any economic subject, visit our NEW expanded message boards by clicking here.
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

We are holding our picks. The market will be hot up to the Producer Price Index (PPI) data on Friday. Even then, the PPI will show that producer inflation is not crossing over to the consumer side, something the Federal Reserve have been trying to avoid.
Technology stocks, especially Internet portals and biotechnology are a good buy about now. Visit our Third Quarter Economic Forecast here to read while we are bullish on Internet portals. Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Ariba, Biogen, CNet Networks, Commerce One, Genentech, Invitrogen, JDS Uniphase, LSI Logic, Microsoft, Micron Tech, Motorola, PE Corp, PMC-Sierra, Vitesse Semiconductor, Yahoo!, ZDNet, Semiconductors and the picks below. Technology is going to end the week very strong! NASDAQ up to 4500 by weekend? Possible!
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: Accelerated Networks, 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, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Exfo Electro-Optical Engineering, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, Immunex, Impsat Corp., Informix, Infosys Technologies, Inktomi, inSilicon, Intel, Intermedia Communications, Internet Capital Group, JDS Uniphase, Juniper Networks, Legato Systems, Linear Technology, Looksmart, Luminex, Metasolv Software, Metrix One, Microsoft, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, New Tel, Niku Corp, Novellus System, Numerical Technologies, ONI Systems, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Palm, Panja, PFS Web, PMC-Sierra, Portal Software, Precis Software, Qualcomm, Qualstar, Quantum Effect Devices, Red Hat, RiverDeep Group Plc., Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sonus Networks, Stanford MicroDevices, StorageNetworks, 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, Virage, 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), Manufacturer's Services Ltd., 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, Silverline Technology, 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 TUESDAY JULY 11TH. 2000

DOW INDUSTRIAL: 10727.19 = +80.61

NASDAQ: 3956.42 = -23.87

S & P 500: 1480.88 = +5.26

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed due to earnings warnings and the Federal Reserve Chair Alan Greenspan not having anything negative to say about the economy. The Dow closed higher on hopes that the Federal Reserve may not raise rates in their July meeting. NASDAQ closed lower on mergers and acquisitions news, interest rates and earnings fears. Gainers included: Altheon Websystem, Atwood Oceanics, Axcelis Technologies, Baker Hughes, Bea Systems, BlueFly.Com, Citigroup, Core Labs N.V., Dell, Electro Scientific, Entergris, Gap inc, GE, Global Crossing, Grand Toys International, Halliburton, Hewlett Packard, Honeywell International, Intel, International Paper, Marine Drill, Motorola, Nextel Communications, Nokia, Nortel Networks, OAO Technology, PE Corp-PE Biosystems, Peoplesoft, Pfizer, Relaince Steel, Smith International Plc, StateFed Financial, Therma Wave, Transocean Sedco, Turkcell, Tyco International, VantageMed, VoiceStream Wireless, WCW Capital, Weatherford International, Xetel, and Xoma Ltd.

MAIN REASONS FOR ACTIVITY

Deutsche Telecom, the German Telecommunications leviathan, is paying $30 billion for Voicestream Wireless Communications. VoiceStream gained 11.3%.
Bear Stearns downgraded Entrust Technologies to an "attractive" recommendation.
Altheon Websystem, a web infrastructure company, reported that it is already profitable in its Fourth quarter of operation, about half the estimated time. Altheon expects future strong growth, but not like the quarter ended June 30th. Salomon Smith Barney initiated coverage of Altheon with a "buy" recommendation. Altheon gained 30.28%.
Oil services stocks were hot due to strong earnings expectations.
Electro Scientific reported fiscal Q4 earnings that beat estimates by 7 cents a share.
Santa Cruz Operation, a networking software developer, reported that it expects fiscal Q3 losses to be between 50 cents to 55 cents a share, well higher than First Call estimates. Santa Cruz made 13 cents a share in fiscal Q3 1999. The company blames the poor performance to delays in signing major contracts, and corporate America's Y2K recovery. Santa Cruz closed lower.
SG Cowen downgraded HCA-The Healthcare Co. to a "neutral" recommendation.
CIBC World Markets downgraded both Qwest Communications International and Sprint to "hold" recommendations, while Worldcom was downgraded to a "buy" recommendation. The three stocks all closed lower.
Aspect Communications, a customer service solutions provider, issued an earnings warning that its fiscal Q2 earnings will be between 1 to 3 cents a share, well short of First Call's 8 Cents a share estimate. Dain Rauscher Wessels downgraded Aspect to a "neutral" recommendation. Aspect lost 54.42%.
Advest inc. upgraded VantageMed to a "strong buy" recommendation. VantageMed gained 27.5%.
USB Piper Jaffray initiated coverage of Genentech with a "strong buy", and Jones Pharmaceuticals with a "buy" recommendations.
JP Morgan initiated coverage of Sprint with a "buy" recommendation.
Morgan Stanley Dean Witter initiated coverage of Rhythms NetConnections with a "strong buy" recommendation.
OAO Technology Solutions has signed a 10-year, $200 million outsourcing contract with IBM to provide Data Center Management services. OAO gained 64%.
Paine Webber initiated coverage of Fifth Third Bancorp with an "attractive" recommendation.
Salomon Smith Barney raised the price target for Sun Microsystems to $90/share, Hewlett Packard to $137/share, and IBM to $160/share. Both Sun and IBM lost to close at 90 3/16 and 102 3/8 respectively. Hewlett Packard closed up to 126 3/16.
USB Piper Jaffray upgraded Abercrombie & Fitch to a "strong buy" recommendation.
Pinnacle issued an earnings warning that its fiscal Q4 earnings will be between 6 to 8 cents a share, at least 50% lower than the First Call estimate of 16 cents a share. Pinnacle lost 59.39%. We can't help but ask, why is the gap between expected earnings and actual earnings getting wider when it should be getting smaller in the information age? Are analysts not being helped by the deluge of conference calls, research or what? Give us your viewpoints on this subject, or any economic subject, visit our NEW expanded message boards by clicking here.
US Wholesale rose 0.4% in may, in line with expectations. Wholesale inventories increased 0.8% in the same period, mostly from non-durable goods. This are signs that the Wholesale sector is slowing down.
The Federal Reserve Bank of Richmond's Manufacturing Shipment Index, which is a good measure of manufacturing activity in the Mid-Atlantic US, dropped to 2 in June. This indicates that manufacturing is growing at a slower region. Also in the same period, new orders and backlog of orders indexes dropped 3 and 7 points respectively. Prices paid for manufacturing inputs grew a robust 2.6% in June, an indication of input price pressures (inflation). The good news is, the input price inflation doesn't seem to be crossing over to consumer price inflation.
Therma-Wave, a semiconductor equipment maker, posted strong gains after reporting record orders for the rest of the year and first quarter of 2001.
BlueFly.Com, FreeShop.Com, and Automatic Data Processing (ADP) reported sweeping e-tailing deals with Microsoft's MSN network today.
Compaq and CMGI, the famous venture capital company/incubator, are setting up a business-to-personel eMarketplace called FreeUp.Com. Compaq will own majority shares.
Federal Reserve chair Alan Greenspan spoke to the National Governors Association today, but had nothing to say about the current state of the economy. To read more on the Federal Reserve Bank and its Monetary/Interest rates policies, click here. To post your viewpoints on this subject, or any economic subject, visit our NEW expanded message boards by clicking here.
AFTER CLOSE: Yahoo!, which has been losing for days due to earnings fears, reported earnings that beat the most optimistic of estimates by 2 cents a share. Yahoo's over the year sales more than doubled from $128 million a year ago to $270 million. Page views also rose from May's 625 million pages viewed a day to 680 million pages viewed a day in June, an 8.8% monthly growth. Yahoo! is gaining aggressively in after hours trading. To read more about Yahoo! and the future of online advertising, check out our Third Quarter Forecast here.
AFTER CLOSE: Biogen, a biotechnology stock that closed lower due to earnings fears, reported its quarterly earnings that beat First Call estimates by One cent a share. Biogen is gaining in after hours trading.
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

We are holding our picks. The market will be hot up to the Producer Price Index (PPI) data on Friday.
Technology stocks, especially Internet portals and biotechnology are a good buy about now. Visit our Third Quarter Economic Forecast here to read while we are bullish on Internet portals. Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Altheon Websystems, Biogen, Fifth Third Bancorp, Honeywell International, Invitrogen, JDS Uniphase, NetRadio.Com, Microsoft, Microtest, NetRadio.Com, Progenic Pharmaceuticals, Three Five Systems, VantageMed, VoiceStream, Yahoo!, and ZDNet.
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: Accelerated Networks, 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, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Exfo Electro-Optical Engineering, 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, JDS Uniphase, Juniper Networks, Legato Systems, Linear Technology, Looksmart, Luminex, Metasolv Software, Metrix One, Microsoft, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, 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, Precis Software, Qualcomm, Qualstar, Quantum Effect Devices, Red Hat, RiverDeep Group Plc., Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sonus Networks, Stanford MicroDevices, StorageNetworks, 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, Virage, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, WorldCom, Yahoo! and Zebra Technologies.

NYSE:

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MARKET SUMMARY FOR MONDAY JULY 10TH. 2000

DOW INDUSTRIAL: 10646.58 = +10.60

NASDAQ: 3980.29 = -42.91

S & P 500: 1475.62 = -3.28

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed. The Dow closed higher on hopes that the Federal Reserve may not raise rates in their July meeting. NASDAQ closed lower on mergers and acquisitions news, interest rates and earnings fears. Gainers included: 99 Cents Stores, Alcoa, AMD, Apple, Blyth, Britton Koontz Capital, Business Resources Group, Cepheid inc, Circuit City Stores, Citrix Systems, Citigroup, Citizens Financial, Costco, Dexter Corp, Duane Reade, Gap inc, GE, Hispanic Broadcasting, Home Depot, Honeywell International, Huntingdon Life, Intuitive Surgery, Kaye Group, Keithley Instruments, Lucent, Micron Tech, Microtest, NetNation Communications, NetRadio.Com, New Focus, Ogden Corp, Peoplesoft, Pfizer, Philip Morris, Plantronics, Progenics Pharmaceuticals, Rite Aid, Sangamo Biosciences, SDL inc, STD Microsystems, Sun Microsystems, Sycamore Networks, Technitron, Three Five Systems, Tommy Hilfiger Group, Total Renal Care, Tyco International, Williams Sonoma, Wolverine World Wide, and Ziff-Davis ZDNet.

MAIN REASONS FOR ACTIVITY

JDS Uniphase is paying $41 billion for SDL inc, a fiber-optic equipment maker. SDL's products will complement JDS Uniphase's very well. Should SDL however, decide on another partner, or should one find it more attractive, the break up fee is a whopping One billion dollars. SDL gained 8.57%, while JDS lost about 12%.
Bear Sterns and Robertsen Stephens initiated coverage of Intuitive Surgery with a "buy" recommendation. Robertson Stephens also raised its price target on Intuitive Surgery to $16 a share. Intuitive gained 22.56% to close at 12 9/16.
Peoplesoft released its People 8 enterprise resource planning software today.
Alcoa, the leading Aluminum company, reported fiscal q@ earnings that beat First Call estimates by 2 cents a share. Over the year fiscal Q2 earnings grew 57%. Alcoa rose 2 3/8, or 8.60%, to close at 30.
Invitrogen, a gene research kits maker, is paying $1.5 billion, or $62 1/2 a share, to acquire Dexter Corporation, and $400 million, or $60 a share, to acquire Life technology. Invitrogen could become the dominant player in the molecular biology research arena. Dexter gained 9.59% to close at 52 22/128, while Life Technology gained 8.16% to close at 53. Invitrogen closed lower.
CE Unterberg has initiated coverage of Progenics Pharmaceuticals with a "strong buy" recommendation. Progenics' HIV treatment drug PRO 542 is reported to be promising in clinical trials.
Cepheid has won a US army contract to develop and build an automated and portable biological agent detection system. Cepheid rose 45%.
Honeywell International announced sweeping changes today. Honeywell is reducing its 120,000 global workforce by about 5%, selling some of its business units, and reducing its earnings growth outlook for the rest of the year and next. Investors seem to agree, as the stock rose 1.08%.
US Consumer Credit grew $11.8 billion in May, well above analysts' expectations. The increasing consumer indebtedness is worrying to tighten lending requirements and charging higher interests. To read more on interest rates and the whole economic picture, click here. To post your viewpoints on this subject, or any economic subject, visit our NEW expanded message boards by clicking here.
About.Com Network has signed a two-year deal with ZDNet inc. Under the deal, ZDNet will be the exclusive third-party technology and content provider for About.Com Networks.
Microtest, a network attached storage (NAS) appliance developer, introduced its high performance optical NAS today. The DiscZerver Cyclone will be priced starting at around $1,000 and is expected to outperform similar NAS platforms for OEMs and intergrators by as much as 3-to-1! Microtest gained over 24%.
BRG Acquisition is paying $46 million, or $9 1/4 for Business Resources Group.
NetRadio.Com and Microsoft's WebTV have signed an agreement to bundle four of the most popular NetRadio.Com's channels with WebTV through its Windows Media Format. NetRadio gained over 55%.
Yahoo! lost on the eve of its earnings announcement, despite the recent study from Adzone Interactive suggests online advertising revenue is increasing. Adzone reported that, Internet advertising rose 54% from January to June of this year to $1.26 billion. In June alone, AOL and Yahoo! led in advertisement revenues of $65 million and $45 million respectively. Check out our Third Quarter Forecast, which addresses the online advertisement issue here. Yahoo! is scheduled to announce earnings on Tuesday July 11th.
Three Five Systems gained over 19% in anticipation of its earnings report after the close.
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

Technology stocks, especially Internet portals and biotechnology are a good buy about now. Visit our Third Quarter Economic Forecast here to read while we are bullish on Internet portals. Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Honeywell International, Invitrogen, JDS Uniphase, NetRadio.Com, Microtest, NetRadio.Com, Progenic Pharmaceuticals, Three Five Systems, Yahoo!, and ZDNet.
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: Accelerated Networks, 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, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Exfo Electro-Optical Engineering, 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, JDS Uniphase, Juniper Networks, Legato Systems, Linear Technology, Looksmart, Luminex, Metasolv Software, Metrix One, Microsoft, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, 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, Precis Software, Qualcomm, Qualstar, Quantum Effect Devices, Red Hat, RiverDeep Group Plc., Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sonus Networks, Stanford MicroDevices, StorageNetworks, 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, Virage, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, WorldCom, Yahoo! and Zebra Technologies.

NYSE:

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MARKET SUMMARY FOR FRIDAY JULY 7TH. 2000

DOW INDUSTRIAL: 10635.98 = +154.51

NASDAQ: 4023.20 = +62.63

S & P 500: 1478.90 = +22.23

MOST ACTIVE STOCKS & SECTORS

The markets rallied due to the employemnt situation report. Gainers included: Amgen, Anixter International, AOL, Applied Materials, Art Technology Group, AVX Corp, BancWest Corp, Bank of Granite Corp, Bea Systems, Best Buy, BMC Software, California Federal Bank, Chase Manhattan, Cisco Systems, Citrix Systems, Citigroup, Compaq, Computer Associates, CrossKey System, Dell, Disney, EMC Corp, Enesco Group, Engineering Measurements, Ericsson, Exodus Communications, Gap inc, Gateway Computers, GE, Genomic Solutions, Guess inc, Home Depot, HotJobs.Com, IBM, Immunex, Infovista S.A., Intel, Interneuron, Intimate Brands, IXYS Corp, J2 Communications, Jabil Circuits, JDS Uniphase, Liz Claiborne, Lowes Cos., Lucent, Micron Tech, Microsoft, Motorola, Netsol International, Nokia, Nortel Networks, Oracle, Peoplesoft, Plantronics, Qwest Communications International, Rite Aid, Shaw Group, Sun Microsystems, Sycamore Networks, Talbots, Texas Instruments, Three Five Systems, Tiffany & Co., Tommy Hilfiger Group, Unifirst Corp, Venator Group, Virologic, Wal-Mart, and Worldcom.

MAIN REASONS FOR ACTIVITY

The Bureau of Labor Statistics reported that the US Unemployment rate dropped from 4.1% to 4.0% in June. Net job increases for June were 11,000, well below the 275,000 anticipated by analysts. The job increase looks low because the 190,000 Census workers released offset the 206,000 jobs created in the private sector. Technology and Retail stocks rallied on the news, even though the data actually points to a dangerous inflation picture ahead.
The Economic Cycle Research Institute (ECRI) reported that its Future Inflation Gauge (ECRI FIG) edged up 0.4% to 123.1% in June. Although the data is lower the 11-year high seen this May, the current data shows that the economy still have price inflation pressures that can resurface at the slightest chance, and that is what the Federal Reserve is trying to fight. To read more on the Federal Reserve's policies, click here. To post your viewpoints on this subject, or any economic subject, visit our NEW expanded message boards by clicking here.
Yahoo! lost close to 5% on worries that it may not meet analysts' revenue expectations as Dot Com companies scale back their advertising budget. Yahoo! is scheduled to announce earnings on Tuesday July 11th. DB Alex Brown downgraded Yahoo!
Cisco Systems is paying $210 million for Netiverse, a developer of Software and Hardware that speeds up content delivery on the web. Cisco intends to use Netiverse's technology on its next generation content networking solutions.
Motorola is acquiring Suncoast Scientific, a privately held developer of business management software.
Compuware lost 11% after announcing that its fiscal Q1 earnings will be between 7 to 9 cents a share. First Call estimated 15 cents a share. Continuing with our discussions yesterday, are the estimated values and actual values of corporate earnings looking too extreme to blame it only on the stock's performance? How about the analysts and their ability to forecast? Give us your viewpoints on this subject, or any economic subjects here.
Peoplesoft gained 16% after Lehman Brothers upgraded it to "outperform".
IXYS Corp, a semiconductor products maker, gained 13% after declaring a 2-for-1 stock split.
HotJobs.Com gained 24% after DB Alex Brown upgraded it to a "strong buy".
Qualcomm lost 8% after the three leading South Korean mobile phone companies announced their intention to use W-CDMA technology for their services. W-CDMA, a technology developed by Nokia and Ericsson, is the standard in Europe, and competes globally with Qualcomm's CDMA Technology.
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

We feel the market will draw back on Monday after the two key economic data today sink in properly. We feel the likelihood of the Federal Reserve increasing interest rates in August actually increased in today's data. To read more on our Federal Reserve Monetary policy analysis, click here. Give us your point of view on this at our NEW and EXPANDED message boards here.
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).

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Accelerated Networks, 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, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Exfo Electro-Optical Engineering, 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, JDS Uniphase, Juniper Networks, Legato Systems, Linear Technology, Looksmart, Luminex, Metasolv Software, Metrix One, Microsoft, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, 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, Precis Software, Qualcomm, Qualstar, Quantum Effect Devices, Red Hat, RiverDeep Group Plc., Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sonus Networks, Stanford MicroDevices, StorageNetworks, 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, Virage, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, WorldCom, Yahoo! and Zebra Technologies.

NYSE: