THE "DAILY BREAD" FOR THE MARKET

 

Daily Morning Insights on the Market

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MARKET SUMMARY FOR FRIDAY DECEMBER 15TH. 2000

  DOW INDUSTRIAL: 10434.96  = -240.03

NASDAQ: 2653.27  = -75.24

S & P 500: 1312.15  = -28.78

MOST ACTIVE STOCKS & SECTORS

The markets closed lower again due to the Microsoft earnings warning and economic data fears. NASDAQ trading volume was heavy at over 2.7 billion. Gainers included: Applied Micro Circuits, Bea Systems, Black & Decker, Broadcom, Chase Manhattan, Ciena, Exodus Communications, Flextronics, Oracle, Palm, Veritas Software, and Yahoo!

MAIN REASONS FOR ACTIVITY

• US Consumer Price Index (CPI), a good measure of price inflation to consumers, rose 0.2% in November. Core CPI, which excludes the volatile energy and food sectors, rose 0.3% - slightly higher than expected.

• US Industrial Output dropped 0.2% in November, well higher than expected. What does these all mean? It means the economy is still slowing in line with a soft landing, but there is potential for increased interest rates and a weaker currency if these record trade deficits continue. Visit our Federal Reserve Monetary Policy Analysis page to read more. Also, visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• SPECIAL ANNOUNCEMENT: Due to family medical problems, we have put our business operations up for sale with WebMergers.Com. We are a family run operation that owns this web portal. The UK and Ireland portal will be in beta testing hopefully before the end of November. We also own over 70 other domain names of influential financial services companies we acquired to set up a financial complaint site (it is legal to use these names to set up a complaint site, but not to resell to these companies in hopes of making a profit). To view the domain names, click here. Please pass the word around about this announcement. We will miss you all. We can be contacted by visiting Contact Information page.

• Abbott Labs is paying $6.9 billion for BASF's Knoll Pharmaceuticals unit. Both stocks closed lower.

• Polaroid issued an earnings warning for its coming quarter. Polaroid closed lower.

• Black and Decker closed up a fraction despite issuing an earnings warning.

• US Treasuries gained as funds existed from stocks.

• 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 Microsoft factor will pull the markets further down.

• We are cautious but still holding our Yahoo! pick for the simple reasons that: the demise of Yahoo! and advertising revenues is over playing again and too premature. Secondly, our discrete study of advertisements on Yahoo! shows a very negligible decline in clients, as opposed to some of the newer high powered advertisers we have seen on the portal lately.

• Bargain hunting and the end of uncertainty in the presidential elections are the only things that can really turn this market around. Once again we feel the market might be over-reacting about Internet advertising again. We agree with the caution on Amazon, but not necessarily the same on AOL, eBay, and Yahoo!. Visit our Quarterly forecasts for reasons why we are cautious on Amazon. As for AOL, eBay, and Yahoo!, we expect advertising revenues to decrease, but not as significant as everyone is chanting. Check out our recommendations below:

• REITERATION: The battered Technology, Internet, and Biotechnology stocks ARE very attractive now. Non-PC chip makers, 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: Technology Biotechnology, and Internet Infrastructures stocks are a bargain.

• 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 THURSDAY DECEMBER 14TH. 2000

  DOW INDUSTRIAL: 10674.99  = -119.45

NASDAQ: 2728.51  = -94.26

S & P 500: 1340.93  = -19.06

MOST ACTIVE STOCKS & SECTORS

The markets closed lower in relatively moderate trading after earning warnings from two powerful brokerage houses re-ignite fears about earnings and the economy in general. Gainers included: Autologic, Compaq, Costco Wholesale, Dot Hill Systems, Edison International, Federal Mogul, Haemonetics, Hewlett Packard, ICN Pharmaceuticals, Lexent, Lexmark International, Lindberg Corp, MarchFirst, Media 100, Motorola, National Equipment Services, New Frontier, Nokia, Nortel Networks, OmTool Ltd, PG&E Corp, Philip Morris, Revlon, Symbol Technologies, Tektronix, Terra Industries, Texas Instruments, The Trizetto Group, Turkcell, Verity, and Xerox Corp.

MAIN REASONS FOR ACTIVITY

• US Producer Price Index (PPI), a good measure of price inflation in the manufacturing sector, rose 0.1% in November. Core PPI, which excludes the volatile energy and food sectors, rose 1.05% - the same level as the month before.

• US Initial Jobless claims for week ending December 9th. dropped 32,000 to 320,000. The 4-week moving average dropped 2,000 to 343,000.

• US Business Intories for October grew 0.6%, well above forecast. Inventory to sales ratio also rose to 1:35.

• US Trade Deficit for Q3 2000 was again a new record at $113.8 billion - goods and services had the highest deficits. What does these all mean? It means the economy is still slowing in line with a soft landing, but there is potential for increased interest rates and a weaker currency if these record trade deficits continue. Visit our Federal Reserve Monetary Policy Analysis page to read more. Also, visit our expanded message boards to discuss this topic or any other business topic by clicking here.

• SPECIAL ANNOUNCEMENT: Due to family medical problems, we have put our business operations up for sale with WebMergers.Com. We are a family run operation that owns this web portal. The UK and Ireland portal will be in beta testing hopefully before the end of November. We also own over 70 other domain names of influential financial services companies we acquired to set up a financial complaint site (it is legal to use these names to set up a complaint site, but not to resell to these companies in hopes of making a profit). To view the domain names, click here. Please pass the word around about this announcement. We will miss you all. We can be contacted by visiting Contact Information page.

• Xerox gained 10.99% after announcing that it is selling its China and Hong Kong operations to Fuji Xerox for about $550 million.

• JP Morgan and Chase Manhattan issued profits warnings today, and taking the markets down with them.

• The US Dollar closed lower against the Euro as economic slowdown fears gripped the market.

• Adobe Systems lost 13.41% despite beating First Call earnings estimates by 2 cents a share.

• Oracle lost a fraction even after beating First Call earnings estimates by 1 cent a share.

• AFTER CLOSE: Software giant Microsoft, which lost 3.06% in regular trading, issued an earnings warning. Microsoft blamed the global slowdown and made known that its earnings will miss about 5% to 6%.

• NOTE: Our Q4 Quarterly forecast is out.

• TRY THIS NEW SERVICES OUT: Checkout our HOT U.S. Cities and Counties Procurement

 

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