THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market

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MARKET SUMMARY FOR THURSDAY AUGUST 9TH. 2001

DOW INDUSTRIAL: 10298.56 = +5.06

NASDAQ: 1963.32 = -3.04

S & P 500: 1183.43 = -0.10

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed as the Dow gained while the NASDAQ closed lower. The NASDAQ, which was zig zag all day and staged a rally in the last hour, had a light trading volume of over 1.459 billion shares, while the NYSE had a volume of over 1.103 billion shares traded. Gainers included: Aastrom Biosciences, Applied Materials, Bea Systems, Biora AB, Broadcom, Calpine Corp, Cantel Medical, Check Point Software, Cisco Systems, C-MAC Industries, Ericsson, Focal Communications, GE, Geron, Global Crossing, i2 Technologies, IBP inc, Intel, Interlogix, Iomega, Lucent Technologies, Manhattan Associates, Microsoft, Netopia, Pepsico, PMC-Sierra, Qualcomm, Qwest Communications International, Stemcells, Texas Instruments, Tyson Foods, USA Truck, and Visual Networks.

MAIN REASONS FOR ACTIVITY

• US Jobless Claims for week ending August 4th. rose 33,000 to 385,000. The 4-week moving average declined 16,000 to 380,000.

• US Chain Store Sales grew a modest 3.4% in July, with Drug Stores, Discount Stores, Footwear Stores, and Wholesale Clubs account for the gains.

• US Import Prices declined 1.6% in July, thanks to a 6.1% drop in petroleum products prices. The June Import Prices were revised to a decline of 0.4%. US Export Prices declined only 0.4% in July - very favorable to the US.

• The Federal Reserve Bank "Beige Book" summary is now available. 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.

• Focal Communications gained 29.57% after announcing that it has secured about $150 million in funding and that it is going to also restructure.

• Canada's C-MAC Industries gained 15.79% after the behemoth Contract Electronics Manufacturer (CEM) Solectron agreed to pay US$2.7 billion in stock and assume debts to acquire it. Separately, Solectron announced that it is taking another $210 million charge on top of the $50 million previously announced. Solectron closed lower.

• Tyson Foods and IBP both gained as Tyson gets closer to completing its acquisition.

• Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Nortel Networks lost 0.79% after raising $1.5 billion in a private placement today.

• Lucent Technologies gained 0.78% on news that it will buy about $3 billion worth of equipment from former subsidiary, Agere Systems. Agere Systems closed lower.

• Storage technology company Iomega gained 4.43% after announcing plans to cut 38% of its workforce and take a fiscal Q3 charge.

• Wal-Mart lost 0.66% after a former employee sued the retail giant for overworking employees and underpaying them.

• Philip Morris closed lower as it asked a California Court to set aside a $3 billion verdict against it.

• Stem Cells stocks like Aastrom Biosciences, Geron and Stemcell gained as they awaited the stem cell research decision from President George W. Buash (see below).

• AFTER CLOSE: Pixar Animation Studios is gaining in after hours after reporting fiscal Q2 earnings that beat First Call estimates by 4 cents a share, despite a drop in revenue.

• AFTER CLOSE: WebMD is gaining in after hours trading after reporting fiscal Q2 losses that were in line with First Call estimates. WebMD's revenue almost doubled from $101.1 million last year to $178.7 million. WebMD reaffirmed its intention to show a profit by 2002.

• AFTER CLOSE: President George W. Bush announced from his ranch in Crawford Texas that, the government will fund limited medical research on cells from human embryos (Stem Cells).

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR WEDNESDAY AUGUST 8TH. 2001

DOW INDUSTRIAL: 10293.50 = -165.24

NASDAQ: 1966.36 = -61.43

S & P 500: 1183.53 = -20.87

MOST ACTIVE STOCKS & SECTORS

The markets closed lower today after the Federal Reserve Districts "Beige Book" report had dismal economic news. Cisco's demise also helped pull the markets down. The NASDAQ, which dived since 11:00 AM, had a heavy trading volume (about time) of over 1.662 billion shares, while the NYSE had a volume of over 1.115 billion shares traded. Gainers included: Adam.Com, Alamosa PCS Holdings, Comdisco, Cooper Industries, DECS Trust V, Exodus Communications, Metrobancorp, Netopia, Nicholas Financial, Pepsico, Qwest Communications International, Regus Plc, Sports Resorts International, Swiss Army Brand, and TMP Worldwide.

MAIN REASONS FOR ACTIVITY

• The Mortgage Brokers Association (MBA) reported that for week ending August 3rd, its MBA Mortgage Applications Survey Index rose 3.6% to 525.3. The Purchase Index rose 2.0% to 318.2. The Refinance, Fixed Mortgage, and Adjustable Mortgage indices all gained.

• US Wholesale Inventories declined 0.2% in June, while Wholesale Sales declined 0.9%, thus pushing the the Inventory-to-Sales Ratio higher for the third straight time to 1.33.

• The Energy Information Agency (EIA) and the American Petroleum Institute (API) reported that for week ending August 3rd, US Crude Oil inventory declined 6.5 million barrels and 3.35 million barrels respectively, while Distillates increased 200,000 barrels and 808,000 barrels respectively.

• The Federal Reserve Bank released its "Beige Book", a district by district report of economic activity today. The Beige Book report show a "slow growth or lateral movement in economic activity in June and July" We will have a full summary of the report tomorrow. 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.

• Pepsico gained 0.31% after announcing plans to restructure its businesses into 2 units: Drinks and Snacks.

• Cisco Systems lost 6.65% and took technology shares down with it due to its dismal financial report and lack of future guidance yesterday.

• Sprint PCS and Sprint FON closed lower after completing the floatation of $2 billion secondary offering of Sprint PCS issues.

• Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Cooper Industries gained 11.59% after the electrical products and hardware maker rejected a $5.5 billion takeover offer from rival Danaher.

• Comdisco gained 5.93% after Sungard Data Systems offered $775 million for its technology services business. Sungard's offer tops Hewlett-Packard's $610 million offer.

• Internet Capital Group (ICG) lost 4.90% after reporting fiscal Q2 losses that rose to 90% due to the poor performance of its units like i2 Technologies.

• US Airways lost 0.75% after rejecting a sweetened takeover offer from Global Airlines.

• Gateway Computer lost 0.98% after announcing plans to close its Irish and British operations, which will affect 1,000 employers. Gateway is rethinking its whole global expansion plans.

• TMP Worldwide, commonly known as Monster.Com, gained 2.02% after reporting strong earnings yesterday.

• Cash strapped web hosting giant Exodus Communications gained 11.65% on speculation that it is about to secure funding.

• Nicholas Financial gained 20.36% after announcing a 2-for-1 stock split and plans to buyback 5%, or 250,000 shares of the company. The Car financing company seem to be a rare breed these days.

• AFTER CLOSE: Nortel Networks is still losing after announcing plans to raise US$1 billion through a private placement of of convertible senior notes.

• AFTER CLOSE: Anchor Gaming is gaining in after hours trading after reporting fiscal Q4 earnings that rose 48% from year ago.

• AFTER CLOSE: Exelixis is still losing in after hours trading despite reporting fiscal Q2 losses that were 1 cent a share less than First Call estimates.

• AFTER CLOSE: Alamosa PCS Holdings is still gaining in after hours trading after reporting fiscal Q2 losses that were 9 cents a share less than First Call estimates.

• AFTER CLOSE: Western Wireless is still losing in after hours trading after reporting fiscal Q2 losses that were 3 cents a share higher than Wall Street estimates.

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR TUESDAY AUGUST 7TH. 2001

DOW INDUSTRIAL: 10458.74 = +57.43

NASDAQ: 2027.79 = -6.47

S & P 500: 1204.40 = +3.92

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed as the Dow gained to the US productivity report, but the NASDAQ closed lower due to massive downgrades in the semiconductor sector. The NASDAQ, which tried to rally with 2 hours left, had a light trading volume of over 1.318 billion shares, while the NYSE had a volume of over 0.982 billion shares traded. Gainers included: Cendant Corp, Ciena Corp, Citigroup, Covad Communications Group, Disney, Earthlink, eBay, Ericsson, Exodus Communications, ExxonMobil, GE, Global Crossing, Inktomi, Intel, JDS Uniphase, K-Mart, Lucent Technologies, Metromedia Fiber Network, Microsoft, Nortel Networks, Qualcomm, Riverstone Network, Tyco International, US Bancorp, Worldcom Group, XO Communications, and Zimmer Holdings.

MAIN REASONS FOR ACTIVITY

• US Productivity rose 2.5% in Q2 of 2001, due primarily to a drop in hours worked, while output was almost constant. Unit Labor Costs in non farm businesses rose 2.1% (Nondurable manufacturing had a whopping 8.6% increase in Unit Labor Cost, while overall manufacturing had a 6.4% increase).

• US Consumer Credit dropped $1.5 billion in June, well different from the $7.8 billion increase economists were expecting. The revolving line of credit grew at its lowest pace since October 1999. 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.

• IPO Today: Bristol Myers spinoff, Zimmer Holdings, closed 7.85% above its offering price. JP Morgan Chase & Co. also initiated coverage of Zimmer Holdings with a "buy" recommendation.

• Inktomi gained 4.60% after Thomas Weisel Partners analyst David Readerman made known to clients that the Internet content company will meet its fiscal Q4 targets.

• Amazon.Com lost 2.52% after announcing plans to start selling Seattle Mariners baseball gear to baseball crazy Japanese at its Japanes Portal.

• Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Microsoft gained 0.33% after appealing the anti-trust ruling against it to the US Supreme Court. Microsoft also announced that it will start offering its MSN Internet Service to Qwest Communications customers.

• Covad Communications Group gained 11.79% after announcing that it has reached an agreement with its creditors that will wipe out its $1.4 billion debt and allow it to reorganize under chapter 11 bankruptcy protection. Covad Communications is one of the few independent DSL service providers still out there.

• Semiconductor shares were hit hard, and took the NASDAQ down after CS First Boston downgraded the sector from a "buy" to a "hold" recommendation. Semiconductor stocks like Altera, Applied Materials, Applied Micro Circuits, ASM Lithograph, ATMI, Cypress Semiconductor, KLA-Tencor, Novellus Systems, Varian Semiconductor, etc. were included in the downgrade.

• AFTER CLOSE: TMP Worldwide, also known as online job listing site Monster.Com, is gaining in after hours trading after reporting fiscal Q2 earnings that beat First Call estimates by 2 cents a share.

• AFTER CLOSE: Cisco Systems is still losing in after hours after reporting fiscal Q4 earnings that were in line with First Call estimates, despite a 99% drop in profits. Cisco is projecting a flat to lower revenue in fiscal Q1.

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR MONDAY AUGUST 6TH. 2001

DOW INDUSTRIAL: 10401.31 = -111.47

NASDAQ: 2034.26 = -32.07

S & P 500: 1200.58 = -13.77

MOST ACTIVE STOCKS & SECTORS

The markets closed lower due to Intel. The NASDAQ, which was under pressure all day, had a very very light trading volume of over 1.092 billion shares, while the NYSE had a volume of over 0.817 billion shares traded. Gainers included: Applied Micro Circuits, BP Amoco Plc, Broadcom, Brocade Communications, Disney, Ericsson, Exodus Communications, ExxonMobil, Global Industries, Haliburton, Hibernia Corp, Hughes Electronics, i2 Technologies, JDS Uniphase, Network Appliance, Qualcomm, US Airways, US Bancorp, Veritas Software, and XO Communications.

MAIN REASONS FOR ACTIVITY

• 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.

• Intel lost 4.42% and took technology shares with it after Lehman Brothers analyst Dan Niles made known that the chip price war is just beginning and will hurt the chip giant's profits.

• General Dynamics lost 1.04% after agreeing to pay $825 million to acquire the Integrated Information Systems Group of Motorola. Motorola also closed lower.

• US Airways gained 5.15% after rejecting the $1.8 billion offer from Global Airlines.

• Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Hughes Electronics gained 3.51% after Echostar Communications announced that its $30.4 billion offer for the company will now include cash.

• Oil futures prices closed above the $27/barrel level, the highest level in 6 weeks, after OPEC announced last week its plan to take off the market about 1 million barrels of crude oil a day. Oil services firms also gained after the US House of Representatives approved drilling in the Artic Wilderness preserve.

• ALERT!!!: Dresdner Kleinwoth Wasserstein Global Strategist Albert Edwards warned in a research note Friday that the US Productivity revisions due to be released Tuesday could blow the lid off the existing assumption that the US economy's strong growth could co-exist with low inflation. Mr. Edwards thinks this could trigger a stock market crash!

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR FRIDAY AUGUST 3RD. 2001

DOW INDUSTRIAL: 10512.78 = -38.40

NASDAQ: 2066.33 = -21.05

S & P 500: 1214.35 = -6.40

MOST ACTIVE STOCKS & SECTORS

The markets closed the week lower on economic data worries. The NASDAQ, which was under pressure all day and recovered from major losses in the last 1 hour, had a light trading volume of over 1.250 billion shares, while the NYSE had a volume of over 0.937 billion shares traded. Gainers included: Checkpoint, Ciena Corp, CMS Energy, Citigroup, Dial Corp, Disney, eBay, EMC Corp, Exodus Communications, First Union Corp, Foster Wheeler, GE, Global Crossing, IBP Corp, Loral Space, Lucent Technologies, McLeodUSA, Motorola, Oakley, Qwest Communications International, Satyam Computer, Scania AB, Sensormatic Electronics, SunTrust Banks, Trinity Industries, Tyson Foods, Tyco International, UAL, and Wachovia.

MAIN REASONS FOR ACTIVITY

• US Non-farm Payroll declined 42,000 in July as the Unemployment Rate held steady at 4.5%. US average hourly earnings grew only 0.3% from the previous month, but grew 4.4% over the year.

• The National Association of Purchasing Managers (NAPM) reported that its Non-Manufacturing NAPM Index declined 3.2% in July to 48.9% - any point below 50% is a contraction. New Orders and Inventory indices declined for the period.

• The Economic Cycle research Institute (ECRI) reported that, its Future Inflation Gauge (ECRI FIG) Index declined 0.6% in July to 103.2. 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.

• First Union gained 0.31%  after Wachovia's shareholders voted to accept its $14.4 billion offer for the company. Wachovia gained 0.38% and bid loser SunTrust Banks also gained 0.65%.

• Yahoo! closed lower after announcing a marketing partnership with Sony Corp.

• eBay gained 5.76% on rumors that the giant online auction company is about to raise its guidance.

• AMR, the parent of American Airlines, lost 1.50% after unveiling a new alliance with British Airways. Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Research in Motion closed lower as analysts continue to doubt if it can meet its fiscal Q2 revenue outlook.

• Tyson Foods gained 2.60% and merger partner IBP gained 2.50% after a Delaware Court approved a modified settlement plan to a lawsuit brought on by shareholders who claim IBP was worth more than what Tyson Foods agreed to pay for it.

• Sensormatic Electronics gained 54.75% after Tyco International agreed to acquire it for $2.3 billion in stock. Tyco International gained 0.97%.

• Consumer products maker Dial Corp. gained 3.50% after the company announced that it is looking for a bigger player to acquire it.

• Vishay Intertechnology closed lower after agreeing to pay about $538.9 million in stocks to acquire General Semiconductor.

• ALERT!!!: Dresdner Kleinwoth Wasserstein Global Strategist Albert Edwards warned in a research note today that the US Productivity revisions due to be released Tuesday could blow the lid off the existing assumption that the US economy's strong growth could co-exist with low inflation. Mr. Edwards thinks this could trigger a stock market crash!

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR THURSDAY AUGUST 2ND. 2001

DOW INDUSTRIAL: 10551.18 = +41.17

NASDAQ: 2087.38 = +19.00

S & P 500: 1220.75 = +4.82

MOST ACTIVE STOCKS & SECTORS

The markets closed higher today, thanks to a strong semiconductor sector. The NASDAQ, which declined briefly but rallied in the last 40 minutes, had a heavy trading volume of over 1.681 billion shares, while the NYSE had a volume of over 1.227 billion shares traded. Gainers included: Act Manufacturing, AMD, AOL Time Warner, Applied Materials, AT&T, Bea Systems, Broadcom, Brocade Communications, Ciena Corp, Cisco Systems, Citigroup, Comcast, Compaq, Computer Sciences Corp (CSC), Dell, Dialog Semiconductor, EMC Corp, Exodus Communications, ExxonMobil, Handspring, Intel, Juniper Networks, KLA-Tencor, Kyocera Corp, Lam Research, Linear Technology, LSI Logic, Lucent Technologies, Maxim Integrated Products, Micron Tech, Microsoft, Motorola, Network Appliance, Nokia, Novellus, Palm, Pepsico, PMC-Sierra, Research In Motion, RF Micro Devices, Semtech, Southern Corp, Sun Microsystems, and Texas Instruments.

MAIN REASONS FOR ACTIVITY

• Worldwide Semiconductor Sales dropped 8.7% in June, the 10th. consecutive drop. All regions saw a drop in Sales.

• US Factory Orders dropped 2.4% in June. The Semiconductor sector saw a strong advance in Orders.

• US Jobless Claims for week ending July 28th. dropped 23,000 to 346,000. The 4-week moving average dropped below the all important 400,000 mark to 395,000.

• The Chicago Fed National Activity Index (CFNAI), a good measure of the US economy's recession risks, dropped to -1.02 in June, and the 3-Month moving average also dropped to -1.05. The farther away from zero the measurement, the greater the recession risk. 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.

• Computer Sciences Corp. (CSC) gained 10.76% today after reporting strong earnings yesterday.

• Intel gained 4.42% today after its CEO made known that it has reached the bottom. Yesterday, Merrill Lynch upgraded a lot of semiconductor stocks too on the same point.

• Handspring gained 21.43% after Sprint PCS made known that its customer who Handspring's Visor® PDA will soon be able to use it to make phone calls and surf the web on its networks. Sprint PCS closed lower, while Palm gained on sympathy.

• The Bank of England, the central bank of the UK, today cut its interest rates by 25 basis points (0.25%) to 5.0%. The rate cut raised optimism on both sides of the Atlantic. Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Research in Motion gained 17% after Dresdner Kleinworth Wasserstein initiated coverage of it at a "hold" recommendation.

• Pepsico gained today again after the FTC approved its acquisition of Quaker Oats yesterday.

• Act Manufacturing gained 36.86% after reporting fiscal Q2 earnings that met estimates, thus forcing short sellers to cover their losses.

• Comcast gained today after reporting its financial and customer figures yesterday that show a strong cash cash flow position.

• PMC-Sierra gained on the eve of its joining the venerated S&P 500 Index.

• AFTER CLOSE: Disney is gaining in after hours after reporting fiscal Q3 earnings that beat First Call estimates by 2 cents a share. Disney's Film units saw an 8% rise in profit, while the Television division saw a 29% drop in profits due to a tough advertisement market.

• AFTER CLOSE: Ask Jeeves is losing in after hours trading despite reporting fiscal Q2 losses that were almost 50% less than expected. Ask Jeeves' sales however, dropped $9.2 million to $16.7 million. On the upside, the company reiterated its fiscal Q4 profit target.

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR WEDNESDAY AUGUST 1ST. 2001

DOW INDUSTRIAL: 10510.01 = -12.80

NASDAQ: 2068.38 = +41.25

S & P 500: 1215.93 = +4.70

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed as the NASDAQ rallied. The NASDAQ, which was up all day, had a very heavy trading volume of over 1.784 billion shares, while the NYSE had a volume of over 1.340 billion shares traded. Gainers included: 3DO, ADC Telecom, Altera Corp, AMD, Analog Devices, AOL Time Warner, Applied Materials, Applied Micro Circuits, AT&T, AT&T Wireless, Brocade Communications, Cadence Design, Ciena Corp, Cisco Systems, Citigroup, Comcast, Cooper Industries, Dell, EMC Corp, Ericsson, Exodus Communications, i2 Technologies, Intel, JDS Uniphase, Juniper Networks, KLA-Tencor, Linear Technology, Maxim Integrated Products, McLeodUSA, Micron Tech, Microsoft, Network Appliance, Nokia, Nortel Networks, Priceline.Com, Quaker Oats, RF Micro Devices, Siebel Systems, STMicroelectronics, Sun Microsystems, Texas Instruments, Tyco International, Worldcom Group, and XO Communications.

MAIN REASONS FOR ACTIVITY

• The Mortgage Bankers Association (MBA) reported that, the MBA Mortgage Applications Survey dropped by 0.4 to 507.2 for week ending July 27th. The Purchasing Index dropped 4.0 to 312.0. Fixed Rate Mortgage declined 0.8, while Refinancing and Adjustable mortgage indices rose.

• The Energy Information Agency (EIA) and the American Petroleum Institute (API) reported that for week ending July 27th, US crude oil inventory decreased 1.1 million barrels and 3.456 million barrels respectively, while Distillates increased 900,000 million barrels and 1.479 million barrels respectively.

• The National Association of Purchasing Managers (NAPM) reported that, its NAPM Index dropped back to 43.6% in July - any level below 50% is a contraction. Production, Backlog of Orders, Employment and New Export Orders indices rose, while New Orders, Prices Paid, Supplier Deliveries, Inventories, and Imports declined.

• US Construction Spending slipped 0.7% in June to $861.6 billion. Public Education, Private Non-Residential Offices, and Private Residential New Multi-families accounted for the drop.

• US Vehicle Sales dropped to 16.3 million units sold in July. Both light trucks and autos declined. GM and Ford Motor Co. saw a decline, while DaimlerChrysler, Honda, Toyota, and Nissan saw no changes. 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.

• 3DO gained 1.62% after reporting a smaller fiscal Q1 loss and a 37% rise in revenue.

• Cadence Design gained 3.35% after its board approved a $500 million stock repurchase plan.

• Comcast gained 0.05% after its President made known the company's intention to start talks with AT&T about its $40 billion offer for AT&T Broadband. AT&T gained 0.45% on the news.

• Visit our BusinessJeeves UK & Ireland portal to read our summary and analysis of the London Stock Exchange.

• Cooper Industries gained 27.44% after its bigger rival, Danaher, made an unsolicited $5.5 billion offer for it. Danaher closed lower.

• Quaker Oats gained 13.98% after the FTC gave Pepsico® the green light to acquire it. Quaker Oats is the parent of Gatorade®. Pepsico lost 6.30%.

• Texas Instruments gained 6.17% after Merrill Lynch upgraded chip stocks Analog Devices, Linear Technology, Maxim Integrated Products, RF Micro Devices, STMicroelectronics, and Texas Instruments to a "buy".

• GE lost 1.61% after the EPA orders the company to dredge the Hudson River to remove toxic waste.

• Lucent Technologies lost 8.51% after raising $1.75 billion in convertible preferred stocks.

• Priceline.Com and KLA-Tencor gained 7.33% and 4.98% respectively after reporting strong financial figures yesterday.

• AFTER CLOSE: PMC-Sierra is gaining in after hours on the news that it will Join the S&P 500 Index at close of business on Thursday. PMC-Sierra is replacing Quaker Oats.

• AFTER CLOSE: Avanex is gaining after reporting fiscal Q4 losses of 82 cents a share, well above the 7 cents a share losses First Call estimated. Avanex's revenue declined only $1.1 million to $18.2 million.

• AFTER CLOSE: Comcast is gaining in after hours after reporting fiscal Q2 earnings of 4 cents a share, while revenue rose 20% to $2.3 billion. Comcast also stated that it expects its digital cable subscribers to increase to 2.2 million, and its high speed data subscription to rise to 950,000 before the end of the year - very strong positive cash flow.

• AFTER CLOSE: Computer Sciences Corp. (CSC) is gaining in after hours after reporting fiscal Q1 earnings of 28 cents a share, 1 cent a share better than First Call estimated. CSC revenue rose 10.2% to $2.7 billion. CSC expects its fiscal Q2 revenue growth to pass 10% and earnings to come in between 30 cents a share to 40 cent a share.

• NEW SERVICE: Now that we have our United Kingdom and Ireland portal BusinessJeeves UK & Ireland, and our Canadian (English) portal BusinessJeeves Canada is 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

PICKS FOR THE NEXT MARKET DAY

REASONS BEHIND THE PICKS

STOCKS TO WATCH NEXT MARKET DAY: All stocks are in play, especially technology and Internet shares. Check out our Quarterly forecasts for other picks.

Visit our Monthly Stock Picks and Guidance page to read our portfolio picks/recommendations.

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MARKET SUMMARY FOR TUESDAY JULY 31ST. 2001