Daily Morning Insights on the Market

• 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.
• Remedy Corp gained 66.41% after rival Peregrine Systems paid $1.08 billion ($275 million in cash and the rest in stocks) to acquire it. Peregrine lost 11.45%.
• Cisco Systems lost 0.54% after agreeing to sell RealNetworks' Internet broadcasting software as part of its product line. RealNetworks lost 3.74%.
• Troubled apparel maker Warnaco filed for Chapter 11 today.
• Variant Semiconductor lost 7.58% after warning that its fiscal Q3 revenues will miss estimates.
• Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.
• Upscale retailer Neiman Marcus lost after warning that its earnings for the quarter and the year 2001 will fall short of estimates.
• American Express gained 1.02% after financial newspaper Barron's™ reported that Morgan Stanley Dean Witter have approached the credit card giant about a merger. Morgan Stanley Dean Witter lost.
• AOL Time Warner gained 1.45% after announcing a $200 million joint venture with Chinese technology company Legent Holdings, to develop portal and ISP services in China. Under the deal, both companies will put up half of the money and AOL Time Warner will control 49% of the venture. AOL™ hasn't had the same spectacular success worldwide as it has enjoyed in the US.
• Finova Group gained 25.80% after its creditors selected the bailout package from Warren Buffett's Barkadial.
• Callaway Golf gained 6.49% after its Rule 35™ golf balls won another tour. Callaway also announced the appointment of Bob Penicka as its new Vice President of Manufacturing.
• AFTER CLOSE: Hughes Electronics is still losing in after hours trading after announcing that its sales for fiscal 2001 will be at the lower end of forecast.
• AFTER CLOSE: Biotechnology firm Affymetrix warned that its fiscal Q2 revenue will be short of estimates, and its losses will be between $4 million to $7 million due to the weak demand for its Genechip™.
• AFTER CLOSE: Advertising services company Engage Technologies reported fiscal Q3 losses of 12 cents a share, 3 cents a share less losses than First Call estimates. Revenue dropped 54% to $25.4 million. Engage lowered its fiscal Q4 earnings outlook from $25 million - $28 million, to $20 million - $$22 million.
• AFTER CLOSE: Huffy Corp. lowered its fiscal Q2 earnings estimates.
• FORECAST IS UP: Our First and Second quarters of year 2001 is now up. Don't get blinded in these uncertain times, take advantage of the information by visiting our Quarterly forecasts page. 
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• This week will be rough as companies issue an avalanche of earnings warnings. Bargain hunters, good economic news, etc. do have the potential to turn things around though.
• STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play.
• Check out our Quarterly forecasts for other picks.

• 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.
• Juniper Networks lost 18.46% and took technology stocks down with it after lowering its earnings estimates and announcing plans to cut about 8% to 9% of its workforce.
• The markets and their trading volume were negatively affected after the NYSE was down till noon due to technical glitches.
• Search engine technology company gained 21.13% after announcing that it sued BroadVision for copyright violations and illegal business practices.
• Willamette Industries gained 1.91% as it moves closer to its $5.5 billion merger with bigger wood products rival Weyerhaeuser.
• Disney closed lower despite announcing that it is firing 1,000 employees in a move that is expected to save $350 million to $400 million.
• The Labour Party won a landslide victory in the UK national elections. Visit our BusinessJeeves UK & Ireland portal to read how this affected the London Stock Exchange.
• Philip Morris lost 2.96% after a California Juror awarded $3 billion to a smoker who sued the company for hiding the dangerous effects of smoking. Other tobacco stocks also suffered.
• IVAX gained 4.18% after announcing that it received a patent for its oral formulation of its Cancer drug Paclitaxel™.
• Gold stocks rose as gold prices rose too.
• Free Internet Service Provider (ISP) Netzero gained 23.16% after announcing an all stock merger with rival Juno Online yesterday. Juno Online gained 20.95%.
• Loral Space gained 15.65% after Lehman Brothers initiated coverage of it with a "strong buy" recommendation.
• IPOs Today: United Surgical Partners closed 29.43% above its offering price. Alliance Data Systems closed 16.67% above its offering price.
• The MCI Group, the tracking stock of Worldcom, closed higher on its first day of trading.
• FORECAST IS UP: Our First and Second quarters of year 2001 is now up. Don't get blinded in these uncertain times, take advantage of the information by visiting our Quarterly forecasts page. 
• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland., and our Canadian (English) portal BusinessJeeves Canada up and running. We are confident, the quality of our content will keep you coming back.
• 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.

• We think next week will be rough as companies issue an avalanche of earnings warnings. Then again, there is the potential for bargain hunters, good economic news, etc. to turn everything around.
• STOCKS TO WATCH NEXT MARKET DAY: Internet and Technology stocks.
• Check out our Quarterly forecasts for other picks.

• US Jobless Claims rose 13,000 for week ending June 2nd. to 432,000 - the highest level in about 9 years. The 4-week moving average also grew to a 9 year high of 414,000.
• US Consumer Credit rose a whopping 11.2% annualized growth of $14 billion in April to $1.584 trillion. Revolving credit had an annualized increase of 17.3% as credit card debts mount.
• US Chain Store Sales grew a mere 1.6% in May. Apparel stores had a decline of 5.4%, while Department stores and Footwear stores had declines of 2.7% and 2.4% respectively. On the upside, Drug, Wholesale and Discount stores saw increases of 9.3%, 5.3%, and 2.7%, while Electronics stores had increase of 2%.
• US Wholesale Trade Sales rose 0.3% in April. On the downside, inventory also rose 0.3%, thus keep the Inventory-to-Sales ratio unchanged at 1.31. 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.
• Bristol Myers Squibb gained 0.14% after acquiring Dupont's pharmaceutical unit for $7.8 billion in cash. Dupont gained 1.06%.
• National Semiconductor gained 10.98% after breaking even in fiscal Q4 as opposed to the 3 cents a share loss First Call estimated.
• Applied Micro Circuits gained 10.12% after informing analysts at the Supercomm™ in Atlanta that it expects double digit growth in the next 8 quarters.
• AMD gained 6.73% after its CEO Hector Ruiz made known that he expects "modest" growth this year and an increase in market share in 2 product lines.
• Broadcom gained 13.13% despite warning that fiscal Q2 revenue will be between 32% to 35% lower.
• Transwitch gained 6.91% despite warning that it will post losses in fiscal Q2 as opposed to the profit Wall Street was expecting.
• Lattice Semiconductor gained 10.21% despite warning that its fiscal Q2 revenue will be lower than the $111.1 million reported in fiscal Q1.
• Visit our BusinessJeeves UK & Ireland portal to read more from our summary of the London Stock Exchange.
• Philip Morris lost 2.96% after a California Juror awarded $3 billion to a smoker who sued the company for hiding the dangerous effects of smoking. Other tobacco stocks also suffered.
• Rockwell International lost 1.89% after warning that its fiscal Q3earnings will be around 45 cents a share, well below the 85 cents a share Wall Street is expecting.
• Omnivision Technology gained 30.64% after reporting fiscal Q4 that met First Call estimates.
• Federated Department Stores lost 4.23% after warning that it might not meet its estimates if the current weakness in retail continues.
• Wells Fargo lost 0.38% after announcing that it will take a one time charge of $1.13 billion due to bad business loans.
• Handheld device maker Handspring lost 1.11% after warning that its fiscal Q4 revenue will be around $60 million to $65 million, about half Wall Street estimates. Handspring attributed its woes to increased competition.
• Worldcom gained 0.27% after shareholders approved a restructuring plan that will create 2 publicly traded companies. Worldcom Group reported revenue of $6.1 billion, a 12% increase from year ago. Worldcom attributed the revenue increase to a 22% growth in its data and Internet business, while global operations grew 19%.
• AFTER CLOSE: Intel is extending its gains in after hours trading after stating at its mid-quarter conference call that its Q2 sales will be at the lower end of its guidance (which still means it will meet), and its revenue outlook is looking even brighter.
• AFTER CLOSE: Free Internet Service Providers (ISPs) Netzero and Juno Online are merging into one company called United Online. The all stock deal will create the second largest ISP after America Online (AOL™).
• FORECAST IS UP: Our First and Second quarters of year 2001 is now up. Don't get blinded in these uncertain times, take advantage of the information by visiting our Quarterly forecasts page. 
• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland., and our Canadian (English) portal BusinessJeeves Canada up and running. We are confident, the quality of our content will keep you coming back.
• 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.

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