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 THURSDAY OCTOBER 5TH. 2000

DOW INDUSTRIAL: 10724.92 = -59.56

NASDAQ: 3472.10 = -51.00

S & P 500: 1436.28 = +1.96

MOST ACTIVE STOCKS & SECTORS

The markets closed down with only the S&P 500 index posting any gains. The NASDAQ and Technology stocks were taken down by Dell and other earnings warnings from Technology and Internet stocks, while the Dow was hit by average performances from retail stocks. Gainers included: 3Com, Abercrombie & Fitch, Advanced Switching Communications, AOL, Apria Healthcare, Atmel Corp, Bradlees, Citigroup, ClickAction, Coach inc., Comcast, Covad Communications Group, Enesco Group, GE, Hello Direct, JDS Uniphase, Lantronics, Liquid Audio, Lucent Technologies, Meridian Insurance, Motorola, MPower Communications, Nortel Networks, Oracle, Palm, Pfizer, Polo Ralph Lauren, Qualcomm, Sara Lee, SBC Communications, Talbots, TNPC, Total Renal Care, and Zaring National Corp.

MAIN REASONS FOR ACTIVITY

US Initial Jobless Claims for week ending September 30th. stood at 299,000 - 10,000 higher than the previous week, but still below the all important 300,000 mark. The 4 week moving average dropped to 306,000.
US September Retail Sales came in 3.9%, lower than August. Apparel and Specialty stores like Talbots led with a 24.8% sales jump, well better than the 6% to 8% estimated. The Limited also beat estimates, while AnnTaylor Stores met its low end estimates. Gap, the parent of Old Navy, saw an 8% sales drop in September. AnnTaylor lost over 8%.
The Federal Reserve Bank of Philadelphia President, who is not a member of the FOMC, stated at a workforce development summit that the weak Euro, the single European currency regime, has not hurt the US economy yet. However, the Federal Reserve is still keeping a close eye on developments. Visit our Federal Reserve Monetary Policy Analysis page to read more on the Federal Reserve FOMC meeting. Also, visit our expanded message boards to discuss this topic or any other business topic by clicking here.
IPOs today: New Skies Satellite N.V., the Dutch web video, data and telephony company, closed 10.08% above offering price. TNPC, an energy and utilities holding company, closed 28.57% above offering price. Kosan Biosciences, a biotechnology company, closed unchanged at $14 a share. Coach, a tote bags maker, closed 26.95% above its offering price. Advanced Switching Communications, a broadband web access company, closed 20.00% above offering price.
Crude Oil prices slipped as US oil companies buy from the 30 million barrels released from the US government's Strategic Petroleum Reserve (SPR).
The Euro and the British Pound closed lower under heavy pressure today. The British Pound Sterling dropped after the Bank of England left interest rates unchanged at 6.0%. The European Central Bank (ECB) raised its interest rates by 25 bases (0.25%) to 4.75%. However. Analysts are concerned that the ECB don't seem concerned about the free fall of the Euro.
Amazon lost 6.77% after Robertson Stephens senior retail analyst Lauren Cooks Levitan called in question the future profitability of Amazon, after the online retailer added full service camera and photography store to its ever expanding list. Ms. Levitan is worried that the company might be overextending, and there is "potential incompatibiliy" in its expansion strategy.
Priceline lost 38% after announcing that its grocery and gas name your price partner, and its used merchandize marketing partners will be pulling out of its name your own price. Salomon Smith Barney and Sands Brothers downgraded the stock to a "neutral" recommendation.
Dell lost 10.64% due to its earnings warning yesterday. Chase H&Q, SG Cowen, and Gerard Klauer Mattison all downgraded the stock.
ClickAction, an internet marketing company, gained 25.49% after announcing that it is comfortable with Wall Street's estimates of its fiscal Q3.
Clear Channel, the radio station holding company, announced that its board has approved a $1 billion stock buyback. Clear Channel lost 15.83%.
Breakaway Solutions, an e-business services company, and Razorfish, a web consulting and design company, lost 39.17% and 10.83% respectively after issuing earnings warnings. Breakaway was downgraded by WR Hambrecht, Dain Rauscher, and CIBC World Markets.
Merrill Lynch Internet and Technology analyst Henry Blodget stated that Yahoo! is currently understated if you factor in its long term income. Yahoo! lost 3.70%.
AFTER CLOSE: J.C. Penney issued an earnings warning for its fiscal Q3.
TRY THIS NEW SERVICE OUT: Checkout our HOT U.S. Cities and Counties Procurement Bids & Small Business Funding Resources page.
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PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

The Earnings warnings from Internet and technology stocks is growing and putting serious pressure on even very strong stocks in these sectors. The market is nervous and every earnings warning is over-reacted. Today's warnings from Breakaway Solutions, Razorfish, and even Priceline's problems are signs that we might be in for a long haul.
BARGAIN! BARGAIN! BARGAIN! How many people know Priceline through their grocery, gasoline, and used merchandize sales? That's right, ZERO. I believe Priceline can concentrate on services they deliver better, and the other promising additions like Mortgages, Car Buying, etc. Online Grocers are falling like flies, while eBay literally dominate the "garage sale" like market. Maybe Wall Street take the same advise it gave to Amazon on over-extension and rather reward Priceline for the dropping of these other partners. This, by the way, might be one of the chief reasons while the NASDAQ seems to be stuck - analysts reward and punish loopsidedly. Because of that, we consider Priceline a bargain and a good buy.
The current situation of Technology and Internet stocks is a becoming a major concern to us. With the shopping season right around the corner, we are concerned that many online sales companies will be hard pressed to raise more funds in the markets when they need it most. Should technology stocks keep being depressed for the next coming weeks, this can snowball from online marketing stocks to major Internet portals.
The battered technology stocks are beginning to look very attractive. Non-PC chip makers, software and networking gear companies especially. We are still holding our picks though. Give us your views on this observation here.
STOCKS TO WATCH NEXT MARKET DAY: See below.
Biotechnology/Biopharmaceuticals, B2B, Technology (Software and Networking stocks), Contract Equipment Manufacturers (CEMs), and Online Brokerage 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: 3 Dimensional, Accelerated Networks, Act Networks, Active Power, Advanced Electronic Support Products (AESP), Advanced Power Technology, Akamai Technology, Alamosa PCS, AlpNet, Altera, Alysis Technology, Amdahl, American Medical Systems, Amgen, Amtech Systems, Anaren Microwave, Andover.Net, Apple, Applied Materials, Applied Molecular, Arena Pharmaceuticals, Argonaut Technologies, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Arrowpoint, Art Technology Group, Ask Jeeves, Atherogenics, AudioCodes Ltd., Avanex Corp., Avici Systems, Axent Technology, Be Incorporated, Biospherics, Bruker Daltonic, Calypte Biomedical, Cavion Technology, Cellular Technical, Centillum Communications, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, Clarus Corp., ClearNet Communications, CMGI, Cobalt Networks, Comdisco, Commonwealth Biotechnologies, Compugen, Concurrent Computer, Convergent Group, Copper Mountain Networks, Corio, Corvis, Covad Communications, Cyber-Care, Cygnus, Cytogen Pharmaceutical, Dallas Semiconductor, Decode Genetics, Dell, DeltaGen, Disc, Discovery Partners International, Dyax, ebay, Ecogen, Efficient Networks, Elan Corp. PLC, Emerge Interactive, Entravision Communications, Epicor Software, E-piphany, ePlus, Equinix, Ericsson, Esperion Therapeutics, EuroWeb, Excite@Home, EXE Technologies, Exfo Electro-Optical Engineering, Evolve Software, Evolving Systems, Finisar, Floware Wireless, Foundry Networks, FreeMarkets.Com, Genaissance Pharmaceuticals, Genzyme Molecular Oncology, GeoWorks, Giganet Wireless, Gilead Sciences, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, II-VI inc., Ilex Oncology, Illumina, Immunex, Impath, Impsat Corp., Incyte Genomics, Informix, Infosys Technologies, Inktomi, Inspire Pharmaceuticals, inSilicon, Integrated Telecom Express, Intel, Intermedia Communications, Internet Capital Group, ISTA Pharmaceuticals, JDS Uniphase, Keryx Biopharmaceuticals, Juniper Networks, Kana Communications, Large Scale Biology, Lattice Semiconductor, Legato Systems, Liberate Technologies, LifeMinders, Linear Technology, Lion BioSciences AG, Looksmart, Luminex, McData, McLeodUSA, The Medicines, Metasolv Software, Methode Electronics, Metricom, Metrix One, Metron Technology N.V., Microsoft, National Security, Neoforma.Com, Net2Phone, NetSilicon, Netsolve, Network Commerce, Network Computing Devices, New Tel, Neurobiological, Nhancement Technology, Niku Corp, Novellus System, Numerical Technologies, Omnivision Technology, ONI Systems, Onvia.Com, OpNet Technologies, Optelecom, Opus360, Oracle, Pac-West Telecomm, Paging Network, Pain Therapeutics, Palm, Panja, Peco II, Pegasystem, Pemstar, PFS Web, Phone.Com, PMC-Sierra, Portal Software, Precis Software, Qualcomm, Qualstar, Quantum Effect Devices, Redback Networks, Red Hat, Regenerate Technologies, Repeater Technologies, Resonate, RiverDeep Group Plc., Robocom, Rosseta Inpharmatics, 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, Stem Cells, Sun Microsystems, Sunrise Telecom, Support.Com, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Talarian, Target Genetics, TCSI, Tegal Corp., Telecommunications Systems, Telik, Telular Corp., Terra Networks SA, TransGenomic, Trega Biosciences, Tripath Technology, TriTel, Triton Network Systems, Turnstone System, Tyler Technologies, UTStarcom, Va Linux, Variagenics, Venture Catalyst, Versata, Versicor, Vertel Corp., ViaNet.Works, Virage, Vitesse Semiconductor, V One Corp., WebMethods, Webex, Witness System, WJ Communications, WorldCom, Xicor, Xilinx, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technologies, 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, C&D Technology, Celestica, Celera Genomics, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, CTS Corp., 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, Halliburton, Hewlett Packard, Hitachi, Home Depot, H Power Corp, IBM, Infineon, JC Penney, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Kroger Co, Legg Mason, Lucent Technologies (LU), Manufacturer's Services Ltd., Medicis Pharmaceuticals, 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, Transocean Sedco Forex, Tyco International, Unisys, Viasystems Group, Videsh Sanchar Nigam Ltd, Vishay Intertechnology, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

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MARKET SUMMARY FOR WEDNESDAY OCTOBER 4TH. 2000

DOW INDUSTRIAL: 10784.48 = +64.74

NASDAQ: 3523.10 = +67.27

S & P 500: 1434.32 = +7.86

MOST ACTIVE STOCKS & SECTORS

The markets closed up as bargain hunters snapped up technology and major Internet stocks. The NASDAQ posted a heavy trading volume. Gainers included: AMD, AOL, Applied Materials, Ariba, Arrow Electronics, AT&T, AT&T Liberty Media, AVX Corp, Biovail, Borg Warner, British Telecom Plc., Broadvision, Cisco Systems, Cirrus Logic, Compaq, Computer Associates, Computer Horizons, Corning, Covad Communications Group, Cypress Semiconductor, EarthWeb, Epiphany, Ericsson, Gateway Computer, GTE, Hewlett Packard, i2 Communications, IBM, Inet Technology, Intel, JDS Uniphase, Juniper Networks, Lamson & Session, Lucent Technologies, Micron Technology, Motorola, NCR, Nokia, Nortel Networks, Ogden Corp., Onyx Software, Oplink Communications, Pacific West Telecommunications, Pepsico, Peregrine Systems, Plantronics, Qualcomm, SBC Communications, Scientific Atlanta, Sun Microsystems, Texas Instruments, Trikon Technology, Trimedyne, US Bancorp, Verizon Communications, Wal-mart, and Yahoo!

MAIN REASONS FOR ACTIVITY

The Energy Information Agency (EIA) and the American Petroleum Institute (API) reported that for weekending September 29th, US Crude Oil inventories rose 1.1 million and 3.4 million barrels respectively. Reuters survey of commodity analysts expected a 1.3 million barrels. As for distillates, the EIA reported a drop of 700,000 barrels, while the API reported a rise of 330,000 barrels. Reuters survey expected an increase of 800,000 barrels.
The National Association of Purchasing Managers (NAPM) reported that its NAPM Non-Manufacturing Index (Business Services) for September rose 2% to 62%. New Orders rose to 61%, while the Price Index rose to 60.5%.
The Economy.Com and PC Data Online Index of Online Sales rose to 76.4% in September. Percent of daily users who buy online also rose.
US Factory Orders rose 2% in August. Information Technology equipment and Aircraft Orders led with the highest rise.
US Auto Sales in September rose to 17.8 million units, with light truck sales leading. Today's data shows a still robust economy with inflationary pressures still very much alive. Visit our Federal Reserve Monetary Policy Analysis page to read more on the Federal Reserve FOMC meeting. Also, visit our expanded message boards to discuss this topic or any other business topic by clicking here.
IPO today: Oplink Communications, a fiber optics equipment maker, closed 86.81% above offering price.
Epiphany, a customer relationship management (CRM) software developer, gained 20.66% after announcing a sales, marketing, and engineering partnership with Sun Microsystems. Sun gained 2.84%.
The Wall Street Journal reported today that the AT&T board is interested in spinning off its long distance operations to shareholders. The paper also named Verizon Communications, and others have been approached about a possible sale.
Pepsico reported its fiscal earnings that beat estimates by 1 cent a share. Pepsico also announced that, long-term earnings will grow by about 12% to 13%. The company also announced that Roger Enrico will step down as CEO before the end of 2001, and will also step down as Chairman before 2002. Pepsico closed up.
Knight Trading Group, the largest NASDAQ market maker, announced that its fiscal Q3 earnings will come in below Wall Street estimates. Knight closed down 11.46%.
Firstar, a bank holding company, is paying $18 billion in stock for rival and the US' 10th. largest bank holding company US Bancorp. Firstar lost 10.11%, while US Bancorp gained 7.82%.
AFTER CLOSE: Dell Corporation and Pitney Bowes issued earnings warnings for fiscal Q3. Both stocks closed down in regular trading.
AFTER CLOSE: Micron technology reported fiscal Q4 earnings of $1.20 a share, 24 cents a share better than First Call estimates, and well better than the fiscal Q4 1999 loss of 3 cents a share. Micron Technology closed up 9% in regular trading.
TRY THIS NEW SERVICE OUT: Checkout our HOT U.S. Cities and Counties Procurement Bids & Small Business Funding Resources page.
JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests 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 think certain sectors of Technology and Internet stocks will rally as investors continue to bargain hunt. We expect minimal effect from Dell's earnings warning.
The current situation of Technology and Internet stocks is a becoming a major concern to us. With the shopping season right around the corner, we are concerned that many online sales companies will be hard pressed to raise more funds in the markets when they need it most. Should technology stocks keep being depressed for the next coming weeks, this can snowball from online marketing stocks to major Internet portals.
The battered technology stocks are beginning to look very attractive. Non-PC chip makers, software and networking gear companies especially. We are still holding our picks though. Give us your views on this observation here.
STOCKS TO WATCH NEXT MARKET DAY: See below.
Biotechnology/Biopharmaceuticals, B2B, Technology (Software and Networking stocks), Contract Equipment Manufacturers (CEMs), and Online Brokerage 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 TUESDAY OCTOBER 3RD. 2000

DOW INDUSTRIAL: 10719.74 = +19.61

NASDAQ: 3455.83 = -113.07

S & P 500: 1426.46 = -9.77

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed again as the NASDAQ posts triple digits losses for the third trading session. Technology stocks lost an early rally after the Federal Reserve announced that it was leaving interest rates unchanged. Bond yields edged up higher on the Federal Reserve decision. Gainers included: ADC Telecommunications, Alcoa, AMD, AOL, Applied Theory, AT&T, BF Goodrich, Centaur Mining & Exploration, Cisco Systems, Corel, Cumulus Media, Dow Chemical, Edison International, Equifax, Ericsson, Gateway Computer, GE, HealthSouth, Informax, Intel, Lyondell Chemical, McDermott International, Micron Tech, NetCentives, Nokia, Philip Morris, Qualcomm, Time Warner, Union Carbide, Warwick Valley Telephone, Wilson Greatbatch, Worldcom, and York International.

MAIN REASONS FOR ACTIVITY

The Federal Reserve Open Market Committee (FOMC) left interest rates unchanged. Visit our Federal Reserve Monetary Policy Analysis page to read more.
US Leading Economic Indicators dropped 0.1% in August, in line with economists' forecasts.
US New Home Sales for August came in at 893,000 - in line with forecasts, and the July figures were revised downward to 921,000. All regions recorded drops, but the west had the largest drop.
Worldwide Semiconductor Sales rose 5.1% in August, Dismal.Com reported. This is the 4th. straight month that semiconductor sales have risen more than 4%, and it is now 52.7% above previous year's sales. Visit our redesigned Federal Reserve Monetary Policy Analysis page to read more on the Federal Reserve FOMC meeting. Also, visit our expanded message boards to discuss this topic or any other business topic by clicking here.
NetCentives gained 21.53% after Thomas Weisel upgraded the stock to a "strong buy" recommendations.
Microsoft is paying $135 million for 24 million non-voting shares, or 24.6% stake of Canadian Linux vendor Corel. Under the deal, Microsoft products will be offered with Corel's Linux. Microsoft closed lower, while Corel gained 56.78%. We have been forecasting Microsoft's entrance in the Linux market for a while now - click here to read our early forecast.
The government lawyers presented their case to the Appeals Court today. The lawyers asked the US Court of Appeals for a faster appeals process than what Microsoft requested. Government lawyers are asking that the process be wrapped up by the end of this year, about half the time Microsoft was requesting. Microsoft closed lower by 4.33%.
Covad Communications Group, a leading DSL provider, reported that it reached its fiscal Q3 goal of more than 200,000 lines installed. Covad lost 17.45%.
IPO Today: Informax, a biotechnology gene analyzing software developer, closed 32.81% above offering price.
Nabors Industries, an oil and Gas rig operator, is replacing Mallinckrodt, a specialty medical equipment maker, on the venerated S&P 500 Index. Both stocks lost a fraction.
Gateway Computer announced that it will start marketing Handspring's handheld devices. Handspring lost 10.70%. Gateway gained 2.50%.
AOL and Time Warner has taken the offensive that the FCC's attempts to regulate its Interactive TV (ITV) and Instant Messaging (IM) are unnecessary. AOL and Time Warner both feel the current concerns about AOLTV currently expressed incorrect and/or irrevelevant. Both stocks closed up.
AFTER CLOSE: Computer Associates, which already lowered its fiscal Q2 earnings, announced that it will still miss fiscal Q2 Wall Street estimates. Computer Associates closed the regular season down 1.76%.
TRY THIS NEW SERVICE OUT: Checkout our HOT U.S. Cities and Counties Procurement Bids & Small Business Funding Resources page.
JOIN THE DISCUSSIONS: Due to the immense popularity this column has received recently, and the willingness of our guests 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 current situation of Technology and Internet stocks is a becoming a major concern to us. With the shopping season right around the corner, we are concerned that many online sales companies will be hard pressed to raise more funds in the markets when they need it most. Should technology stocks keep being depressed for the next coming weeks, this can snowball from online marketing stocks to major Internet portals.
The battered technology stocks are beginning to look very attractive. Non-PC chip makers, software and networking gear companies especially. We are still holding our picks though. Give us your views on this observation here.
STOCKS TO WATCH NEXT MARKET DAY: See below.
Biotechnology/Biopharmaceuticals, B2B, Technology (Software and Networking stocks), Contract Equipment Manufacturers (CEMs), and Online Brokerage 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).