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 NOVEMBER 2ND. 2000

DOW INDUSTRIAL: 10880.51 = -18.96

NASDAQ: 3429.02 = +95.63

S & P 500: 1428.32 = +7.10

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed as the NASDAQ rallied while the Dow closed lower. Gainers included: ADC Telecommunications, Affymetrix, Allen telecommunications, AnnTaylor Stores, AOL, Apple, Applied Materials, Bradlees, Broadvision, Charles Schwab, Cisco Systems, Claires Stores, CMGI, Compaq, Computer Sciences, Costco Wholesale, DaimlerChrysler, Dell, DeltaThree.Com, EMC Corp, E-Sim Ltd., Evergreen Solar, Federated Department Stores, Floware Wireless, Ford Motor Co, Gap, Global Crossing, Global Telesys, Hispanic Broadcasting, Hughes Electronics, InfoSpace, Intel, JC Penney, JDS Uniphase, Keithley Instruments, Kmart, The Limited, Lucent, Meditrust, Metro Information Systems, Microsoft, Motorola, Nastech Pharmaceuticals, Nextcard, Pharmacopeia, Qualcomm, Qwest Communications, Resmed, Sun Microsystems, Talbots, Texas Instruments, Time Warner, Wal-Mart, West Seal, Williams Sonoma, and Yahoo!

MAIN REASONS FOR ACTIVITY

US Index of Leading Economic Indicators for September was unchanged. Coincident and Lagging Indices rose.
US Retail Chain Sores Sales for October rose only 3.2%, the lowest growth in 6 months. Despite that, retail stocks still rallied.
US Productivity rose 3.8% in Q3. Labor costs rose 2.5%, as opposed to the Q2 drop of 0.2%.
US Initial Jobless Claims for week ending October 28th. was unchanged.
US Vehicle Sales in October dropped to 16.8 million, the lowest level in 8 months. 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.
Affymetrix gained 31.50% after wining a patent infringement lawsuit against a United Kingdom biotechnology company.
Intel gained 4.04% after announcing that it will meet its 4% to 8% growth target. This news rallied chip stocks.
Oracle lost on false rumors that its CEO and CFO are leaving the company.
Biotechnology, Internet, Technology and Financial stocks were strong today.
GM and DaimlerChrysler have entered into an agreement with AOL to provide low cost Internet access to about 300,000 of their US employees. AOL rose 3.85%. GM and DaimlerChrysler also rose.
PSINet, an Internet access and web hosting company, reported fiscal Q3 losses that were in line with First Call estimates. Revenues however, dropped 22%. PSINet's CEO and COO are quitting. PSINet lost 56.16%.
IPOs Today: Energy Partners, closed 3.33% below their offering price. Evergreen Solar, a solar power company, closed 20.63% above its offering price.
AFTER CLOSE: Qualcomm, a leading wireless company, reported fiscal Q4 earnings of 25 cents a share, 1 cent a share better than First Call estimates. Revenues dropped only 11% due to a slow South Korean market. Qualcomm also announced that it will delay the spinoff of its chip unit Spinco until market conditions improve. Qualcomm gained 2.13% in regular trading, and still gaining in after hours trading.
AFTER CLOSE: Computer Sciences reported fiscal Q2 earnings of 64 cents a share, in line with First Call estimates, and 17% higher since last year. Computer Sciences rose 4.98% in regular trading.
AFTER CLOSE: Priceline reported fiscal Q3 losses of 1 cent a share, in line with First Call estimates. Priceline also reported that October Airline ticket sales are down 20%. Priceline is announced the reduction of 87 jobs from its 535 person staff, and expects Q4 earnings to be affected by the charge. Priceline has about $131 million in cash. Priceline's COO Heidi Miller is also departing the company. Priceline closed up 10.61% in regular trading, but losing in after hours trading.
AFTER CLOSE: The Wall Street Journal reported after close that Pepsico is in talks to acquire Quaker Oats for about $13 billion.
NOTE: Our Q4 Quarterly forecast is out.
TRY THIS NEW SERVICES OUT: Checkout our HOT U.S. Cities and Counties Procurement Bids & Small Business Funding Resources page. If you are new, we now have a WEEKEND NEWS update to keep you properly informed for the next market day.
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 markets will rally tomorrow due to the positive earnings from Qualcomm. We also expect tomorrow's economic data to be positive.
Biotechnology stocks are attractive now - the dumping due to Amgen's earnings is an overreaction.
REITERATION: The battered Technology, Internet, and Biotechnology stocks ARE looking very attractive now. 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: Biotechnology and Biopharmaceutical stocks, Yahoo!, Microsoft, Fiber Optics, Networking, technology, Internet and Financial stocks.
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 NOVEMBER 1ST. 2000

DOW INDUSTRIAL: 10899.47 = -71.67

NASDAQ: 3333.39 = -36.24

S & P 500: 1421.21 = -8.19

MOST ACTIVE STOCKS & SECTORS

The markets slumped on earning fears, and massive downgrades in the technology sector. Blue chips, especially financial stocks, also took a hit as analysts' skepticism on Q4 earnings and revenues dominated the market, even in the face of good economic news (see below). Profit taking today was also an extra pressure. Gainers included: ADC Telecommunications, Amazon, AMD, AOL, Bea Systems, Broadvision, Chase Manhattan, Ciena Corp, Classica Group, CMGI, Comdisco, Covad Communications Group, DaimlerChrysler, Dell, EMC Corp, EOG Resources, Ericsson, Global Marine, Global Telesys, InfoSpace, Key3Media Group, Lanoptics, Liberty Financial, Loral Space, Micron Tech, Microsoft, Nokia, Pfizer, Radio One, Rent-Way, Resmed, Safeguard Scientific, Simula, Superior Telecom, Unigraphics, Virata Corp, Wal-Mart, Yahoo!, and Zi Corp.

MAIN REASONS FOR ACTIVITY

The Federal Reserve Districts "Beige Book" report for September and October shows a stable and moderating economy with some slow down in consumer spending and services. We will have the complete report Thursday 6PM Pacific on our Federal Reserve Monetary Policy Analysis page.
The Energy Information Agency (EIA) and the American Petroleum Institute (API) reported that for weekending October 27th., US Crude Oil inventories dropped 1.5 million and 700,000 barrels respectively. Reuters survey of analysts expected an inventory rise of 3 million barrels! EIA and API reported that US Distillates inventories increased 1.4 million and 1.1 million respectively. Reuters survey expected an increase of 200,000.
The National Association of Purchasing Managers (NAPM) reported that its October NAPM Index, a good measure of manufacturing activity in the country, dropped to 48.3%, slightly lower than forecasted, and the lowest level in about 2 years. Any value above 50% indicates an expansion. The New Orders, Backlog of Orders, Production, and New Export Orders Indices all dropped and were below 50%. The Prices Paid Index dropped to 51.8%, while Imports and Supplier Deliveries Indices rose to 51.8% and 51.4% respectively.
US Construction Spending in September rose 2%, significantly above estimates. Residential Housing starts held steady, while Commercial, Industrial, and Public Building sectors rose significantly. What does this data mean? It means the economy is slowing as desired, and the EIA/API crude oil reports are bullish on the sector. 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.
Crude Oil prices rose 55 cents a barrel to close at $33.25 a barrel.
Yahoo! gained significantly after it was made known that it has signed a content deal with Dow Jones, publishers of the Wall Street Journal and Barron's.
Altera lost 20.46% after posting earning warnings on its web site last night. Wall Street was swift in punishment as Morgan Stanley dean Witter, and W.R. Hambrecht downgraded the stock.
Morgan Stanley Dean Witter downgraded the following semiconductor stocks: Applied Materials, KLA Tencore, Lam Research, LTX Corp. JP Morgan downgraded the following: Xilinx, STMicroelectronics, LSI Logic, Linear Technology, Lattice Semiconductor, Kemet, and Analog Devices.
Worldcom lost 20.26% after reducing its profits and earnings growth forecast for fiscal 2001. Worldcom also announced that it will separate its Internet and Data business from its long distance unit and create a tracking stock for the unit (an about face from what the company said less than 6 months ago). Merrill Lynch, Wachovia Securities, and CS First Boston downgraded Worldcom.
Virata Corp., a chip and software maker for DSL Modems, rose 23.87% on news that Cisco Systems will license its software.
Zi Corp, a software developer that its products include a software that allows typing of Chinese characters on regular keyboards, gained 34.74% after announcing that it has won a patent infringement appeal against Tegic Communications, a subsidiary of America Online (AOL).
EMC Corp., the leading data storage space company, paid $300 million in stocks for CrosStor Software, a leading software developer for networked storage business. EMC gained 2.18%.
Nortel Networks warned that its Q1 2001 earnings estimates by Wall Street are too high by 1 cent. Nortel however, expects to meet this year's Q4 earnings and revenue forecasts. Nortel lost 3.30%.
Covad Communications Group, a major DSL player, gained 13.02% after its CEO Robert Knowlings resigned amid growing concern about the company's stock price slump.
Aetna reported earnings that beat First Call estimates by 10 cents a share, while revenues rose 15%. Aetna is rising in after hours trading.
AFTER CLOSE: The Semiconductor Industry Association (SIA), the trade association for chip makers, released an optimistic forecast of global chip sales today. The SIA expects chip sales to rise 37% to $205 billion this year - a new record. The SIA expects this to increase to $249 billion next year, and $309 billion by 2003.
NOTE: Our Q4 Quarterly forecast is out.
TRY THIS NEW SERVICES OUT: Checkout our HOT U.S. Cities and Counties Procurement Bids & Small Business Funding Resources page. If you are new, we now have a WEEKEND NEWS update to keep you properly informed for the next market day.
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 market over-reacted about earnings warnings again despite some very positive economic news. We think the market will react positively on the economic news tomorrow after the Altera and Worldcom fears subside.
Biotechnology stocks are attractive now - the dumping due to Amgen's earnings is an overreaction.
REITERATION: The battered Technology, Internet, and Biotechnology stocks ARE looking very attractive now. 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: Biotechnology and Biopharmaceutical stocks, Yahoo!, Microsoft, Fiber Optics, Networking, technology, Internet and Financial stocks.
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 31ST. 2000

DOW INDUSTRIAL: 10971.14 = +135.37

NASDAQ: 3369.63 = +178.23

S & P 500: 1429.39 = +30.73

MOST ACTIVE STOCKS & SECTORS

The markets rallied due to spectacular earnings of Expedia after close yesterday. Other earnings reports and economic data today also spurred stocks to mount a strong rally. Technology heavy NASDAQ rose on a heavy trading volume. Gainers included: AAron Rents, ADC Telecommunications, AdminStaff, Alcatel, Allen Telecommunications, AMD, Amgen, AOL, Apple, Applied Materials, Applied Micro Circuits, AT&T, Avaya, Bea Systems, Charles Schwab, China Tire, Chyron Corp, Ciena, Cisco, Citigroup, Compaq, Corning, Cox Radio, Diagnostic Products, Ericsson, eSpeed, Exodus Communications, Expedia.Com, GE, Harmonic, Hilton Hotels, Hispanic Broadcasting, IBM, I-Many, JDS Uniphase, Juniper Networks, Large Scale Biology, Lucent Technologies, Manpower, Micron Tech, Motorola, Next Level Communications, Nokia, Oracle, Pericom Semiconductor, PMC-Sierra, PurchasePro, Sharper Image, Sun Microsystems, Sunrise Telecommunications, Sycamore Networks, Time Warner, Tioga Technologies, Texas Instruments, Vitessee Semiconductor, Wal-Mart, and Yahoo!

MAIN REASONS FOR ACTIVITY

The Conference Board reported that the US Consumer Confidence Index dropped in October to 135.2.
New Home Sales for September rose a higher than expected 946,000.
Chicago Purchasing Managers reported that for the Month of October, its Chicago PMI index, a good measure of manufacturing activity in the Chicago area, dropped to 48.7 - any point below 50 is a sign of manufacturing slow down. What does this data mean? It means the economy is slowing as desired. 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.
Rambus lost 15.91% after a chip manufacturing trade magazine Electronic Buyers News reported that Intel will phase out chips that use most of Rambus' technology. Intel closed unchanged.
Charles Schwab gained 4.66% after announcing that it has signed a deal with AOL that will allow Schwab to have prominent placement on AOL's global properties. AOL gained 5.76%.
Alcatel of France lifted telecommunications and fiber optics equipment makers today after posting a spectacular fiscal Q3 earnings.
Harmonic gained 45% on news that AT&T Broadband will buy telecommunications equipment from Harmonic.
AFTER CLOSE: Procter & Gamble, the consumer products company which closed 7.07% lower in regular trading, reported fiscal Q1 earnings of 82 cents a share, in line with First call estimates. Procter & Gamble however, wasn't optimistic about future sales.
AFTER CLOSE: Tioga Technologies, an Integrated circuits company that gained 23.64% in regular trading, reported fiscal Q3 losses of 24 cents a share, 11 cents a share less losses than First Call estimates. Tioga is still rising in after hours trading.
NOTE: Our Q4 Quarterly forecast is out.
TRY THIS NEW SERVICES OUT: Checkout our HOT U.S. Cities and Counties Procurement Bids & Small Business Funding Resources page. If you are new, we now have a WEEKEND NEWS update to keep you properly informed for the next market day.
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 Federal Reserve Districts' "Beige Book" report and the National Purchasing Managers' NAPM Index due for release tomorrow could cause the markets to rally for another day, if all else is held constant. Bargain hunting in technology stocks will be broader too.
We think the market has reached the bottom and ready for a turn around. There might be some hiccups here and there as retail stocks report earnings in the coming week days. We think technology will gain aggressively, but Internet stocks, especially online retailers, and consumer products stocks will be affected on what retail chain stores report.
Biotechnology stocks are attractive now - the dumping due to Amgen's earnings is an overreaction.
REITERATION: The battered Technology, Internet, and Biotechnology stocks ARE looking very attractive now. 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: Biotechnology and Biopharmaceutical stocks, Yahoo!, Microsoft, Fiber Optics, Networking, technology, Internet and Financial stocks.
Expect

THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market