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 26TH. 2000

DOW INDUSTRIAL: 10516.48 = -183.49

NASDAQ: 3987.72 = -41.85

S & P 500: 1452.42 = -22.05

MOST ACTIVE STOCKS & SECTORS

The markets closed lower in anticipation of tomorrow's Employment Cost Index (ECI) data. Losses in semiconductor stocks didn't help either. Some investors took advantage of the mood to take profits. Gainers included: ADC Telecomm, Aradigm Corp, Ask Jeeves, Brilliance, Catapult Communications, Chemfab, Cisco, Compaq, Couer d'Alene, Cytogen, Dell, Dset Corp, ExxonMobil, Gemini Genomics, Genomic Solutions, Keithley Instruments, McDonalds, M-Wave, Norfolk Southern, Oracle, Oratec Intervention, Qualcomm, Radio Shack, Rehabcare, Swiss Army Brands, Teledyne, Tenet Healthcare, Tyco International, Ulticom, Varian, Ziplink, and Zoll Medical Corp.

MAIN REASONS FOR ACTIVITY

Santa Barbara, California based hospital operation Tenet Healthcare Corporation reported fiscal Q4 earnings of 51 cents per share, 2 cents a share better than First Call estimates. Tenet gained a fraction
MarketWatch.Com reported fiscal Q2 earnings losses of 64 cents a share,12 cents a share less loss than First Call estimates. MarketWatch.Com closed lower.
PPL Power, a Pennsylvania Utility Company, reported fiscal Q2 earnings of 64 cents a share, 16 cents a share better than estimates, and 60% higher than fiscal Q2 1999. PPL Power lost 3.24%.
Gene & Protein researcher Genomic Solutions reported fiscal Q2 earnings loss of 17 cents a share, better than First Call estimates. Genomic closed up 2-1/16. Genomic Solutions expects profitability by 2001.
Radio Shack reported fiscal Q2 earnings of 38 cents a share, 2 cents a share better than estimates, and 22% above fiscal Q2 1999. Radio Shack closed up 3 9/16.
Sale of US Treasury Notes received lack luster reception in the market, as investors wait the Employment Cost Index due tomorrow, and the Q2 Economic Growth data due Friday.
JDS Uniphase reported fiscal Q4 earnings of 14 cents a share, 2 cents better than First Call estimates, and a 173% sales increase for the quarter. JDS gained 5 3/4.
Amazon.Com reported fiscal Q2 losses of 33 cents a share, 2 cents a share less. Amazon's sales grew less than 1% from fiscal Q1 to Q2. Amazon closed lower.
Ford Motor Co. sold $7.5 billion Corporate Bonds today.
Changes in Small Cap S&P 600 Index: Robotic Vision Systems will replace Centigram Communications, now part of ADC Telecomm. Forward Air & Factory 2-U stores will replace Coeur d'Alene & Swiss Army Brand.
Semiconductor (chip) Stocks took a beating due to not so spectacular performance. LSI Logic yesterday reported fiscal Q2 earnings of 10 cents a share, in line with estimates, but sales was Lackluster.
Intel announced that it will not license Rambus' Memory Chips performance enhancement technology, but will design its own for its new chips. Rambus closed lower.
Ask Jeeves reported net loss of 51 cents a share yesterday, 5 cents a share less than First Call estimates. Ask Jeeves was today upgraded to a "strong buy" by First Union, Robertsen Stephens and USB Piper Jaffray all had positive comments on the stock. Ask Jeeves gained over 26%.
IPO Today: Gemini Genomics closed up 42.86% above offering price.
Dset reported earnings that topped estimates by 5 cents a share. Dset gained 26.08%.
AFTER CLOSE: Napster lost the first round today as a Judge issues an to shot down the popular Music Site.
Microsoft has filed papers requesting the US Supreme court refer its case by to the appeals courts. Microsoft closed lower.
JOIN THE DISCUSSIONS: 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 Employment Cost Index data will rule the day. Expect the data to show a slowing economy and an easing tight labor market. Other than that, we are still behind our picks (YES, including semiconductor stocks!). Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Semiconductor, Internets, Biotechnology and Networking stocks will have the 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, Argonaut Technologies, 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, Comdisco, Commonwealth Biotechnologies, Corel, Corio, Covad Communications, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Decode Genetics, 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, Methode Electronics, Metricom, Metrix One, Microsoft, National Security, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, Network Computing Devices, New Tel, Niku Corp, Novellus System, Numerical Technologies, Omnivision Technology, ONI Systems, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Pain Therapeutics, Palm, Panja, PFS Web, Phone.Com, 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, Societe Europeene Communication S.A., SonicWall, Sonus Networks, Stanford MicroDevices, StorageNetworks, Sun Microsystems, Sunrise Telecom, Support.Com, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Talarian, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, TransGenomic, Trega Biosciences, TriTel, Triton Network Systems, Turnstone System, UTStarcom, Va Linux, Variagenics, Venture Catalyst, Versata, Vertel Corp., ViaNet.Works, Virage, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, WorldCom, Xicor, Xilinx, Yahoo! and Zebra Technologies.

NYSE

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, Applied Biosystems, AT&T, AT&T Wireless Group, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, Benchmark Electronics, 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, Sungard Data System, 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 25TH. 2000

DOW INDUSTRIAL: 10699.97 = +14.85

NASDAQ: 4029.56 = +47.99

S & P 500: 1474.47 = +10.18

MOST ACTIVE STOCKS & SECTORS

The markets rallied after Federal Reserve Chair Alan Greenspan repeated his speech to the US House of Representatives, and the strong earnings of companies like AT&T. Gainers included: 3Com, ADC Telecomm, Applied Materials, AT&T, AT&T Wireless, Bear Stearns, Blue Martini Software, BMC Software, Boeing, Broadvision, Cisco, Compaq, Dell, Deutsche Telekom, Drug Emporium, Dura Pharmaceutical, EMC Corp, Ericsson, Evoke Communications, Global Crossing, HealthCentral.Com, Intel, Kopin Corp, Lands End, LoisLaw.Com, Luxottica, Merck, Motorola, M-Wave, Nokia, Nortel Networks, Oracle, Pharmacia, PlanetRX.Com, Priceline.Com, Qualcomm, Sun Microsystems, Technitrol, Texas Instruments, Tyco International, Unisys, ValueClick.Com, Voicestream, Worldcom, and Xilinx.

MAIN REASONS FOR ACTIVITY

Merck & Co. reported fiscal Q2 earnings of 73 cents a share, 4 cents a share better than First Call estimates. Sales grew 18% for the period. Merck gained 9.12%.
Salomon Smith Barney reported that brokerage house Bear Stearns could consider an acquisition offer. Bear Stearns gained 11.31%.
The Conference Board reported that the US Consumer Confidence Index rose in July to 141.7, and the June figures were upgraded upward to 139.2. Consumer buying plans were weak, especially in the auto sector - This figure do not mean that the Federal Reserve will take action, but the Central Bank will now be alert.
US Existing Home Sales for June rose 2.8% to 5.23 million units. While mortgage rates have been generally high for the year, home affordability have also risen to match the increases, thus spurring the demand. Data however, shows that mortgage rates have dropped in recent weeks, and the Federal Reserve will be watching if this spikes demand in housing. The two data releases are benign in nature and the Federal Reserve will be watching data carefully in the coming weeks. Visit our Federal Reserve Monetary Policy Analysis page for more, and post your views at our popular message boards here.
Joseph Galli, President of Amazon.Com, is resigning. Amazon shares lost 2.90%.
HealthCentral.Com is paying $7.9 million for DrugEmporium.Com, the online unit of Drug Emporium. Drug Emporium closed up 43.59%, while HealthCentral.Com gained 23.71%.
AT&T reported fiscal Q2 earnings of 57 cents a share, well better than the First Call estimates of 53 cents a share. AT&T is also forecasting stronger growth in fiscal Q3. AT&T closed up a fraction.
It is now official: Deutsche Telekom is paying $50.5 billion for VoiceStream wireless. This will give Deutsche Telekom a strong entry into the US wireless market. Deutsche Telekom closed up 5.14%, while VoiceStream gained 4.23%. Read our European Telecom Forecast here. Discuss this subject on our message boards here.
Nortel Networks reported fiscal Q2 earnings of 18 cents a share, well above the 3 cents a share First Call estimates, and 75% above its fiscalQ2 of 1999. revenue rose 48% to $7.82 billion, thanks to optical & high speed Internet Gear. Nortel gained 1.83%.
ValueClick.Com reported fiscal Q2 earnings of 6 cents a share, 2 cents a share better than First Call estimates. The online advertiser reported that revenue rose 290% for the period, and still sees strong performance ahead. ValueClick gained 20.73%.
Today's IPOs: Blue Martini Software gained over 173% above its offering price. Evoke Communications, an online conferencing company, closed over 50% above its offering price, while web hosting company Interland lost over 25% above its offering price.
Qualcomm announced that it is spinning off its chip and systems software/products division. Qualcomm will concentrate on its Code Division Multiple Access (CDMA) technology.
IBM and Xilinx are teaming up to develop next generation communications, storage, and consumer applications chips. Xilinx gained 3.57%.
AFTER CLOSE: BMC Software, which gained 2.78% in regular trading, reported fiscal Q1 earnings of 20 cents a share, better than First Call estimates, but 53% less than fiscal Q1 1999.
Waddell & Reed reported fiscal Q2 earnings of 39 cents a share, in line with First Call estimates. Waddell & Reed CEO made it known that if a good offer comes along and share holders approve it, Waddell & Reed will be sold. Rumors have been spreading about the company seeking a buyer. Waddell & Reed closed a fraction lower.
Chevron reported fiscal Q1 earnings of $1.75 a share, Twice the fiscal Q1 1999 earnings, and in line with First Call estimates. Strong Oil and Natural Gas prices were the factors. Chevron lost a fraction.
Logitech International S.A., a computer equipments maker, reported fiscal Q1 operating income of $41 million, more than quadruple the company's forecast. Logitech closed lower.
McKesson HBOC, a drug distributor, reported fiscal Q1 earnings of 22 cents a share, in line with First Call estimates, and 3 cents a share lower than fiscal Q1 1999. Revenue rose 13.1% to $9.73 billion, mostly from its distribution business. Its information technology unit faltered. McKesson lost 4.65%.
GM, the US' largest car maker and advertiser, awarded its consolidated media business contract to Starcom MediaVest, a unit of Bcom3 Group. The contract is estimated to be worth $2.3 billion a year.
A Japanese Business Daily reported that AOL and NTT DoCoMo, the largest Japanese cell phone operator, are in the final stages of talks to allow DoCoMo's cell phone customers access to AOL's content and email services. AOL lost a fraction.
JOIN THE DISCUSSIONS: 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 still bullish on our picks. We are expecting a replay of today as the market waits for important economic data due Thursday. Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Semiconductor, Internets, Biotechnology and Networking stocks will have the 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:

NYSE

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MARKET SUMMARY FOR MONDAY JULY 24TH. 2000

DOW INDUSTRIAL: 10685.12 = -48.44

NASDAQ: 3981.57 = -112.88

S & P 500: 1464.29 = -15.90

MOST ACTIVE STOCKS & SECTORS

The markets closed lower again as earning fears affect both Blue Chip and Technology stocks. Gainers included: ADC Telecomm, Agilent Technologies, Applied Materials, Ashanti Goldfields, Brilliance, Burlington Resources, Catalytica, China East Airline, Chirex, Comdisco, Coyote Network, EMusic.Com, Ericsson, FloridaFirst, Global Sports, GoTo.Com, Merck, Metricom, Network Systems, Nokia, Nortel Networks, PE-Corp, Peoplesoft, Pfizer, Qualcomm, Ralston Purina, SBC Communications International, Societe Europeene de Communication S.A., Texas Instruments, Tyco International, V3 Semiconductor, Verizon Communications Wireless, Xicor, and Xilinx.

MAIN REASONS FOR ACTIVITY

Merck & Co. reported fiscal Q2 earnings of 73 cents a share, 4 cents a share better than First Call estimates. Sales grew 18% for the period. Merck gained 9.12%.
RedHat sustained major losses after its Chief Financial Officer resigned to take a similar position at Silicon Graphics.
SBC Communications announced many deals today as it takes aggressive stride in e-business and the Internet market. SBC is investing $50 million into an Internet Data Center scheduled to be up by July 31. SBC is also paying $100 million for a majority stakes in InQuest, the parent of the web hosting company WebHosting.Com. SBC's Sterling Commerce unit is also entering into a strategic alliance with eMarketplace player Commerce One. SBC Communications was up a fraction.
Priceline.Com reported fiscal Q2 losses of One cent a share, well better than the First Call estimates of 3 cents a share losses. Priceline also made known that it could be profitable by fiscal Q3, but the profits will be invested into newer technology and platforms. Priceline lost 22.31%.
Nortel Networks is investing $1.9 billion to more than double its fiber optics production. Growth in Internet traffic is fueling a growth in fiber optics systems. Word is circulating that Nortel is also in talks to sell its fiber optics components maker to Corning. None of the companies confirmed the rumor. Nortel closed up a fraction, while Corning took heavy losses.
Rhodia, a French specialty chemical company, is paying $31 1/4 a share for Chirex, a US raw materials maker for the pharmaceutical industry. Separately, Chirex was downgraded by PMG to a "hold", while DB Alex Brown and Legg Mason downgraded it to "market perform". Chirex closed up 52.48% to 30 11/16.
Metricom introduced a new modem that can connect wireless devices to the internet at higher speeds. Metricom gained 27.60%.
EMusic.Com unveiled a new service that will allow subscribers to pay a monthly fee for an unlimited download of music. EMusic wants to use the proceeds to pay Musicians and Record Labels so as to avoid the legal demises of companies like Napster. EMusic closed up 32.76%.
Xicor, a chip memory device maker, closed up 55.14% after announcing that it has developed a new fiber component that can connect controlling and monitoring functions in lasers used in fiber optics.
IBM appointed Samuel Palmisano to President/COO, and John Thomson to Vice Chairman effective September 1. Both executives are veterans of the company. IBM lost about 2%.
AFTER CLOSE: Texas Instruments reported fiscal Q2 earnings of 31 cents a share, One cent a share better than First Call estimates. Revenue rose 19% for the period. Texas Instruments is gaining aggressively in after hours trading, after closing up 7.09% in regular trading.
AFTER CLOSE: Intergrated Silicon Solutions (ISS) reported fiscal Q3 earnings of 32 cents a share, well better than First Call estimates of 20 cents a share, the 5 cents a share losses of fiscal Q3 1999. Revenue rose 19% for the period. ISS is gaining in after hours trading.
AFTER CLOSE: MP3.Com reported fiscal Q2 losses of 8 cents a share, 5 cents a share less loss than First Call estimates, and 14 cents a share less than fiscal Q2 1999. MP3.Com also announced the resignation of David Easterly, President/COO of Cox Enterprises, from the MP3 board. MP3.Com closed lower in regular trading, and still losing in after hours trading.
AFTER CLOSE: Akamai reported fiscal Q2 losses of 50 cents a share, 7 cents a share less loss than First Call estimates. Akamai closed lower in regular trading, and still losing in after hours trading.
AFTER CLOSE: Affymetrics, a genetics equipment maker, reported fiscal Q2 losses of 22 cents a share, 17 cents a share greater losses than First Call estimates. Affymetrics closed lower in regular trading, and still losing in after hours trading.
AFTER CLOSE: Pfizer reported fiscal Q2 earnings of 23 cents a share, a 21% rise from fiscal Q2 1999 revenue to $1.44 billion, and in line with First Call estimates. Sales of Viagara dropped One million dollars for the period. Pfizer closed up 3.68% in regular trading.
JOIN THE DISCUSSIONS: 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 still bullish on our picks. We are hoping tomorrow's Consumer Confidence and Existing Home sales data will finally take the unfair heat off Technology and Internet stocks. Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Semiconductor and Networking stocks will have the 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, Argonaut Technologies, 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, Comdisco, Commonwealth Biotechnologies, Corel, Corio, Covad Communications, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Decode Genetics, 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, Methode Electronics, Metricom, Metrix One, Microsoft, National Security, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, Network Computing Devices, New Tel, Niku Corp, Novellus System, Numerical Technologies, Omnivision Technology, ONI Systems, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Pain Therapeutics, Palm, Panja, PFS Web, Phone.Com, 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, Societe Europeene Communication S.A., SonicWall, Sonus Networks, Stanford MicroDevices, StorageNetworks, Sun Microsystems, Sunrise Telecom, Support.Com, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Talarian, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, TransGenomic, Trega Biosciences, TriTel, Triton Network Systems, Turnstone System, UTStarcom, Va Linux, Variagenics, Venture Catalyst, Versata, Vertel Corp., ViaNet.Works, Virage, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, WorldCom, Xicor, Xilinx, Yahoo! and Zebra Technologies.

NYSE

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MARKET SUMMARY FOR FRIDAY JULY 21ST. 2000

DOW INDUSTRIAL: 10733.56 = -110.31

NASDAQ: 4094.45 = -90.11

S & P 500: 1480.19 = -15.38

MOST ACTIVE STOCKS & SECTORS

The markets closed lower as earning warnings from Blue Chip technology stocks prompted many investors to some profit taking. Volume was light, very typical of a Friday. Gainers included: American Express, Amgen, AT&T, Boeing, Brilliance, Citigroup, Comdisco, Computer Associates, Conexant System, Corio, Embraer Aircraft, EMC Corp, General Semiconductor, Home Port Bancorp, Interactive Investor, JDS Uniphase, Methode Electronics, Nortel Networks, Palm, Pfizer, Phone.Com, Pixel Works, Sipex Corp, SMTC Corp, Sungard Data System, Sun Microsystems, Talarian Corp, Tyco International, Variagenics, Verizon Wireless, Virage, and Waddell & Reed Financial.

MAIN REASONS FOR ACTIVITY

Ericsson announced that, parts shortages in the mobile phone unit will hurt its fiscal Q3 earnings.
September Crude Oil Futures dropped $1.21 to $28.56/barrel, as it becomes apparent that Saudi Arabia will indeed increase production.
Coverage was initiated on Interactive Investor with a "buy" recommendation by DLJ.
IPOs today were : Corio, an ASP, closed up 40.63% above its offering price. Variagenics, a biotech, closed up 75% above its offering price. Talarian, a software developer for data networks, closed up 42.19% above its offering price. SMTC, an Ontario Canada based company that offers logistics and product support, closed up 58.59% above its offering price.
Seacoast Financial Services is paying $68.5 million, or $37/share for Home Port Bancorp. Both are Massachusetts institutions. Home Port closed up 35 1/2.
Professional Staff Plc. has agreed to the $8.34, or $72.3 million, from First Saddle Ltd. takeover offer. Professional Staff closed at 8 1/8.
Lexmark International fiscal Q2 profits rose 13%, to 62 cents a share, but 2 cents a share lower than First Call earnings estimates. Lexmark blame the Monochrome printer market for the poor performance. Lexmark lost 25%, Hewlett Packard, the largest monochrome printers producer, lost 4.6% in sympathy.
The dollar rose against the Yen, but lost versus the Euro. The 30-year US bond prices rose by $3.125, while the yield dropped 0.2% to close at 5.79%.
Agilent Technologies lost 11% after Salomon Smith Barney, Goldman Sachs, and Bear Stearns downgraded it due to poor performance for fiscal Q3.
Sungard Data Systems reported fiscal Q2 earnings of 40 cents a share, 2 cents a share better than First Call estimates. Sungard gained 9.96%.
Phone.Com reported fiscal Q4 loss of 10 cents a share, 9 cents a share less loss than First Call estimates. Phone.Com gained 13.65%.
Verizon Communications, the combined wireless operations of BellAtlantic & GTE, assured analysts that its fiscal Q2 sales grew 15%, and its earnings will be in line with their predecessors' forecasts. First Call is forecasting fiscal Q2 earnings of 77 cents a share. Separately, Verizon was upgraded by AG Edwards to a "buy" recommendation. Verizon gained 8.47%.
DEVELOPMENTS TO WATCH: 16 Instant Messaging (IM) companies released a policy paper today criticizing AOL on its attempts to drag its feet on an IM protocol. AOL, they said, needs to give a time frame on when it has to cooperate on the project. Disney is already complaining about AOL- Time Warner merger. We will keep you posted on developments.
JOIN THE DISCUSSIONS: 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 still bullish on our picks. Today's market response was an overreaction. Technology (minus those identified below), Internets, and Biotechnology stocks are a bargain, considering their spectacular earnings reports. Makers of Telephonic equipment, Mainframe Systems and large printers seem to be having problems meeting earnings, not the whole technology sector. Give us your point of view on this at our NEW and EXPANDED message boards here.
STOCKS TO WATCH NEXT MARKET DAY: Comdiscs, Embraer Aircraft, JDS Uniphase, Methode Electronics, Phone.Com, SMTC Corp, Variagenics, and our picks below.
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, Argonaut Technologies, 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, Comdisco, Commonwealth Biotechnologies, Corel, Corio, Covad Communications, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Decode Genetics, 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, Methode Electronics, Metrix One, Microsoft, National Security, Neoforma.Com, Net2Phone, Netsolve, Network Commerce, Network Computing Devices, New Tel, Niku Corp, Novellus System, Numerical Technologies, Omnivision Technology, ONI Systems, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Pain Therapeutics, Palm, Panja, PFS Web, Phone.Com, 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,