Paint the Table (PTT)

[Foxlette]

8:40AM: The futures are indicating the cash market will be giving back some of the large gains made yesterday...Many retailers will be reporting April same store sales today. So far, the results are pretty disappointing. Gap Inc (GPS 14.71) just reported terrible results, but are raising guidance....The 11K decline in the just announced Jobless Claims to 411K in the May 4 week was close to the 407K consensus and should have little market impact; this decline is consistent with the continued unwinding of the spike in claims caused by the introduction of extended benefits....
It's a quiet day on the earnings front...Current indications: S&P 500 futures are -3.50, or 7.5 pts below fair value. Nasdaq 100 is -6.0, or 10 pts below fair value.

[mulholland drive]

Even if he does know a thing or two...I'm not sure I could relate...I'm just enjoying the nice, calm breeze.

;)

[Bob Zumbrunnen]

I don't have a lot of faith in or respect for Naveen Jain.

Amen!

I wouldn't be surprised at all if he pulled the plug on SI with no warning whatsoever.

When/if it gets shut down, that's the way it's going to happen.

INSP is getting out of everything but the wireless business, last I heard. My understanding is that they're keeping SI around only because they think they can license the technology elsewhere.

Got a news flash for them. The technology is worthless and there are too many good competitors already in that space. Yours truly will be joining that fray later this year.

They've got a good interface. Can't really fault them on that. But it's slow, terribly inflexible, and likely almost impossible to maintain, let alone tweak for deployment elsewhere.

That said, I wouldn't think it'd be costing them that much to keep it alive. A little bit of hardware and a few salaries. I can't see any good reason for them to shut it down as long as they can afford what it costs. And I think they can.

But they probably could've afforded my salary, too, so it's really tough to predict just what they'll do with it.

[JXM]

SI works again

[Norma]

I think you are right, Jorj.

Well, I finally got logged on... couldn't remember my username or password. LOL!

You have 370 unread messages for me.

[JXM]

I think that it is a vast conspiracy of Zeev followers to sabotage the PTT standing. If you go to SI's homepage, you will see that the PTT thread is numero uno today.

[Alan Smithee]

I don't have a lot of faith in or respect for Naveen Jain.

I wouldn't be surprised at all if he pulled the plug on SI with no warning whatsoever. That said, they're likely just having server problems.

[JXM]

It was an accident, I swear.

[Alan Smithee]

Jim:

After waffling and trading sideways most of the day, the Comp closed at 1854. Persons much smarter than me tell me that the close breaks the uptrend channel and we are due for more of a pullback.

~ AS

[ergo sum]

Seems strange they wouldn't let people know.

Unless they listen to westpacific who I think fortold this just the other day. Maybe the world will end next.

I'm scared,
Ergo Sum

[jbc]

So what went on today? I've been in meetings all day and come back to find JXM broke our site. I've told you a hundred times Smithee, he can't be left unsupervised!

Jim

[Alan Smithee]

Maybe Naveen finally pulled the plug on SI.

[Rich1]

Thanks in meetings and on a plane since 2 PM..

[ergo sum]

The first I heard was at 4:56 EST

[Alan Smithee]

Thanks Luna.

Tell me, does this JXM guy know anything or is he all wind?

[Rich1]

How long has it been down???

[ergo sum]

Looks like the sight is down.
Don't know much else.
Don't know much at all.

Ergo Sum

[ergo sum]

Thanks.

I am starting to understand now.

Ergo Sum

[JXM]

The VIX is the Implied Volatility of a number of OEX options. The site can probably explain it better than I, but I will give you my particular interpretation (mileage may vary).

Because the market has a bullish bias (an example would be that there are more people who go long stocks than there are those who go short), when there is complacency, there is less demand for put options. With less demand, those who are selling options can demand less premium on those options. So generally speaking when there is a low VIX it is a good time to buy options because the premiums are low. But when there is fear in the market, there is a lot of demand for puts and there the premiums go up. This would be a good time to sell puts so that you can get the extra premium.

When everyone has given up, there is rarely complacency. There is usually desperation and fear. The link can explain it far better than I.

[Rich1]

Whats up with SI?/cant get on??

[ergo sum]

JXM

I don't have a handle on this really. I will check your links but here is the part I don't get:

So, low levels on the VIX generally indicate complacency in the market and complacency is generally found at the tops of the market. Conversely, high vix readings generally indicate fear which is usually associated with a bottom

Shouldn't there be complacency also at the bottom? A sign that everyone has just given up.

Thanks for taking the time.

Ergo Sum

[JXM]

Hello Ergo sum,
thanks, flattery will get you everywhere

I use the vix as one of my complacency indicators. There are people that are more schooled on the intricacies of the indicator. My start with it was strictly through the charts. For a detailed description on the vix, I would recommend stockcharts.com
http://stockcharts.com/education/What/IndicatorAnalysis/indic_VIX.html

I don't want to avoid the question, but want to give you that background first.

So, how do I use it....I don't use it alone and I don't expect the market to swing wildly in reaction to various vix levels. I also don't really care about absolute values. I am more concerned with relative values. the current levels have been where the general market has launched a significant correction for the past 4 to 5 years. It doesn't mean that one is imminent though, it just tells me that I need to be ultra cautious if I am going to play on the bullish side. So, low levels on the VIX generally indicate complacency in the market and complacency is generally found at the tops of the market. Conversely, high vix readings generally indicate fear which is usually associated with a bottom.

You can see on this chart that there is a strong correlation between the VIX and strong moves in the market. Look at March 2000. The readings are down around 20. Then in April it shoots up over 40. I consider the mid 40s to be a good bottom that should be bought. In Sept 2001, we went up over 55. Lots of fear. I can show you posts where I stated that I was buying heavily on margin.

I'll try to throw together a COMP chart that shows the VIX readings at the major tops and bottoms.

BTW, there is an equivalent for the NDX called the VXN. But I pretty much just stick with the VIX for the entire market.

http://stockcharts.com/def/servlet/SC.web?c=$VIX,uu[h,a]daclyyay[d20000114,20020314][pb50!b200][vc60...

[mulholland drive]

Hi Alan...

I think you are the most famous poster thus far....at least you have screen credits..

:)

[Alan Smithee]

Hey! Lookit this neat thread I found.

Are there any famous people who hang out here?

[ergo sum]

JXM

Your a smart guy. I overheard a conversation the other day about VIX, Can you take a moment and explain to me why it is important, or if it is?

Ergo sum

[Foxlette]

NEW YORK (CBS.MW) -- Stock prices are set to rebound once trading commences on Thursday following two sessions of bruising losses in the tech sector.

March S&P 500 futures climbed 2.50 points, or 0.2 percent, and were trading about 3.00 points above fair value, according to HL Camp & Co. And Nasdaq futures gained 5.00 points, or 0.3 percent and were trading around 7.40 points above fair value.

But technology investors have another round of sullen analyst calls to sift through following a slew of glum remarks in the chip sector on Wednesday.

Analysts have come out in droves to warn investors that upside in the economy may not readily translate into healthy earnings growth in the tech sector with so much capacity sloshing around.

CS First Boston trimmed revenue and earnings estimates for PC makers, dubbing information technology spending a "no-show." The firms affected included Compaq Computer, Dell Computer (NYSE: CPQ - news) , Hewlett-Packard (NYSE: HWP - news) and Tech Data (NasdaqNM: TECD - news) . Among those stocks seeing early activity, Dell slipped 23 cents to $26.60.

Additionally, Lehman Brothers lowered its rating on Sprint (NYSE: FON - news) to a "market perform" from a "buy."

Treasurys falter
Treasury bond issues traded lower as investors prepared to absorb a massive amount of corporate paper.

GE Capital, General Electric's financing arm, is set to price an $11 billion offering that includes tranches in the 3-, 5- and 30-year sectors.

The 10-year Treasury note was off 7/32 to yield 5.305 percent while the 30-year government bond erased 1/4 to yield 5.76 percent.

Thursday's economic calendar is cluttered with a string of releases, mostly second-tier in nature: weekly initial claims, January business inventories -- seen declining 0.4 percent -- the fourth-quarter current account figures and the February import and export price indexes.

In the currency sector, the dollar dropped 0.6 percent to 128.63 yen while the euro jumped 0.6 percent to 88.03 cents.

[Foxlette]

NEW YORK (CBS.MW) -- Stocks are set for a somber open Wednesday as a feeble rise in retail sales tempered enthusiasm on the economic recovery, sending the futures markets sharply lower.

February retail sales rose 0.3 percent overall and 0.2 percent when stripping out the fickle autos component. Economists had expected overall growth of 1 percent and 0.7 percent when excluding autos.

The futures markets turned lower as the data hit the tape. The March S&P 500 contract declined 3.30 points, or 0.3 percent, and was trading around 2.10 points below fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, slipped 20.00 points, or 1.2 percent and were trading roughly 15.50 points under fair value figures.

The week's most significant economic release came in weaker-than-expected, breaking the powerful streak of sturdier-than-projected economic news.

Meanwhile, Wall Street analysts had less-than-rosy comments on the chip equipment segment.

Lehman Brothers said it remains cautious on the overall semiconductor equipment industry due to the group's high valuations and expectations for only a modest recovery in the second half of the year.

"Until wee see more convincing evidence that the electronics end markets are improving, and excess capacity will become better utilized, we remain cautious," commented analyst Ted Berg in a research note.

Meanwhile, PC industry researcher IDC upped its 2002 growth forecast for worldwide PC shipments to 3 percent from the previous 1.8 percent, indicating that retail sales in the U.S. and growing demand in Western Europe were the main drivers of the upward revision.

With growing signs of economic recovery supporting the market, IDC said both consumers and commercial buyers are feeling more confident making significant IT purchases.

In corporate news, TRW (NYSE: TRW - news) determined that Northrop Grumman's (NYSE: NOC - news) latest bid to buy the company for $47 a share was "financially inadequate" and not in the best interests of its shareholders. TRW said Northorp's offer remains below the current market price for its shares. TRW also said it believes shareholder value can be enhanced by executing a strategic plan, which may include the separation of its automotive business.

Treasurys waver
Treasury issues wilted after a two-day break from a seven-day selling spree that took the benchmark 10-year's yield to its highest level since early July 2001.

The 10-year Treasury note eased 9/32 to yield 5.345 percent while the 30-year government bond forfeited 1/4 to yield 5.74 percent.

In the currency sector, the dollar edged up 0.1 percent to 129.32 yen while the euro slumped 0.3 percent to 87.27 cents.

[Foxlette]

NEW YORK (CBS.MW) -- Negative pre-announcements from Lucent Technologies and Nokia put a damper on action ahead of the official opening bell Tuesday, with soggy overseas action adding to the glum tone.

The futures markets signaled a sharply lower open across the board.

March S&P 500 futures slumped 9.70 points, or 0.8 percent, and were trading 4.00 points below fair value, according to HL Camp & Co. figures. Nasdaq futures were just as soggy, sliding 30.00 points, or 1.9 percent and were trading 37.30 points under fair value.

Worries over Securities and Exchange Commission probes surfaced again and also worked to curtail buying interest among investors.

The SEC asked WorldCom (NasdaqNM: WCOM - news) late Monday to voluntarily produce documents and information related to a third-quarter 2000 charge, among other things. And federal regulators asked Qwest Communications (NYSE: Q - news) for information on how the company treated certain financial transactions Monday.

Trim Tabs noted that corporate investors turned "horribly bearish" last week in the face of bullish government statistics.

The fund flow and liquidity tracker said the net change in trading float of shares grew dramatically.

"The trading float grows when either companies or insiders sell never before traded shares. The trading float shrinks via stock buybacks and cash takeovers," Trim Tabs explained, pointing out that new offerings of $4.6 billion late week trounced the meager $497 million of new cash takeovers and $235 million of stock buyback announcements.

"Corporate investors are bearish and Wall Street market strategists are bullish. There is no doubt that corporate investors have a much better record of predicting the future," the firm concluded in its latest research note.

Treasurys get more upside
Government bonds tallied gains for a second session after seven straight sessions of grueling selling pressure.

Expectations for a sour start in the equity realm was adding to the appeal of fixed-income securities. Tuesday's data void will give investors a respite from the recent swarm of stronger-than-expected news.

Wednesday's February retail sales report will draw the most attention from investors as it'll reveal just how sturdy consumer spending -- the driving force of the U.S. economy -- was last month.

The 10-year Treasury note was up 10/32 to yield 5.275 percent while the 30-year government bond climbed 13/32 to yield 5.69 percent.

In the currency sector, the dollar was modestly higher against the major currencies. Dollar/yen rose 0.3 percent to 128.66 while the euro plumbed shed 0.2 percent to 87.31 cents.

[Foxlette]

NEW YORK (CBS.MW) - Stocks are set for a lower open Monday, as corporate accounting worries could once again retake the spotlight amid a dearth of fresh economic reports.

June S&P futures were 0.40 lower to 1,166.20, which is about 1-point below fair value, according to figures provided by HL Camp & Company.

Corporate news is expected to drive the market, with little economic data to turn to on Monday. Qwest (TICKER: Q ) said that the SEC has launched an informal inquiry into the telecom company. It will hold an 8 a.m. EST conference call.

Nasdaq 100 futures are down 4.00, or about 4 3/4-points below fair value, at 1,560.00.

The S&P 500 cash index ( $SPX : news , chart , profile ) closed Friday up 6.77 at 1,164.31, and was up 32.53 points for the week. The Nasdaq 100 Index ( $NDX : news , chart , profile ) added 48.30 to close Friday at 1,555.11, and was 119.7 points for the week.

Last week, the Dow industrials saw a fourth straight week of gains and the Nasdaq its most meaningful weekly advance since early October.

On Friday, the Dow Jones Industrial Average ( $INDU : news , chart , profile ) added 47.12 points, or 0.4 percent, to 10,572.49. The Nasdaq Composite ( $COMPQ : news , chart , profile ) rallied 48.04 points, or 2.6 percent, to 1,929.67 and the Nasdaq 100 Index ( $NDX : news , chart , profile ) tacked on 48.30 points, or 3.2 percent, to 1,555.11.

The top indexes closed out the week with hefty gains: the Dow was up 2 percent, the Nasdaq 7 percent and the S&P 500 2.9 percent. The Dow hovered at a 7 1/2-month peak while the Nasdaq was at a five-week high.

Peter Cardillo, chief investment strategist with Global Partners Securities, believes the stock rally will remain on firm footing over the short term but conceded it could run into roadblocks when the pre-announcement season begins.

"Stocks continue to build on momentum and the Dow has been pushed to the high end of its trading range. Investors don't want to miss out on the recovery," Cardillo said.

He said corporate profit growth is still the missing piece of the puzzle but believes capital spending could increase sooner than many anticipate thanks to the aggressive cost-cutting measures implemented by companies over the past year.

This week's calendar will be chock-full of interesting releases that'll give investors a better picture of how the economy performed last month.

The retail sales report for February tops the list, followed by the industrial production/capacity utilization figures and the February producer price index.

Other notable indicators include the Michigan consumer sentiment index for March, January business inventories, and the import and export price indexes for February.

[Foxlette]

NEW YORK (CBS.MW) -- The first gain in nonfarm payrolls since July is set to spark a bull run in stocks on Friday.

Nonfarm payrolls rose much more than expected in February, swelling 66,000 while the unemployment rate fell to 5.5 percent from 5.6 percent the previous month. Economists surveyed by CBS.MarketWatch.com project a gain of 12,000 in nonfarm payrolls and a rise in the unemployment rate to 5.8 percent from 5.6 percent.

June S&P 500 futures piled on 8.50 points, or 0.7 percent, and were trading around 10.00 points ahead of fair value, according to HL Camp & Co. figures. And Nasdaq futures shot up 19.50 points, or 1.3 percent, and were trading roughly 23.30 points above fair value.

While the broad market will show ebullience on the data, the biotech sector will remain under pressure after Thursday's losses.

Behemoth Biogen (NasdaqNM: BGEN - news) slid 12 percent in pre-open action after its Swiss rival Serono announced that it received approval from the Food & Drug Administration to sell its multiple sclerosis drug Rebif in the U.S.

Serono's (NYSE: SRA - news) drug competes directly with Biogen's Avonex. The company saw its shares climb 12 percent in Europe. In the meantime, Biogen said it was well prepared for the arrival of Serono's Rebif, adding it was confident Avonex would maintain its established position as the leading MS therapy in the U.S.

In the tech sector, two bellwethers traded mixed after giving investors midquarter updates late Thursday. Intel (NasdaqNM: INTC - news) traded off 23 cents to $32.75 in the pre-open after announcing late Thursday that it expects first-quarter sales of $6.6 billion to $6.9 billion compared with its previous range of $6.4 billion to $7 billion. Shares closed up 0.1 percent.

And Sun Microsystems (NasdaqNM: SUNW - news) climbed 29 cents to $9.12 after reaffirming late Thursday its third-quarter outlook and saying that it was confident it would return to profitability in the last quarter of the year.

On the fund flow front, all equity funds saw inflows of $3.2 billion in the week ending March 6 compared with inflows of $8.6 billion in the prior week. And equity funds that invest primarily in U.S. stocks had inflows of $3.7 billion compared with inflows of $6.5 billion the prior week while bond funds got inflows of $1.4 billion compared with inflows of $100 million the prior week.

Treasurys get seventh day of losses
Government bonds remained lower for a seventh straight session, with long yields hovering at two-month highs.

The 10-year Treasury note was down 13/32 to yield 5.28 percent while the 30-year government bond erased 12/32 to yield 5.68 percent.

In the currency sector, the dollar stabilized after Thursday's mauling, gaining 0.2 percent to 128.03 yen while the euro erased 0.2 percent to 87.94 cents.

[Foxlette]

NEW YORK (CBS.MW) -- The Dow industrials led the stock market in a widespread move higher on optimism that the economy is on the mend. Techs trekked higher following upbeat news from Sprint, which drew enthusiastic cheers from the telecom sector.

"Data points continue to signal recovery. For the first time in a while it seems that companies have the wind at their back rather than in their face," remarked David Powers, senior technology strategist at Edward Jones.

The Nasdaq saw its fourth straight session of gains while the broad S&P 500 finished at a 2-month high.

Buying interest was pervasive as investors gave a broad swath of groups the thumbs up: biotech, airline, retail, drug, financial and energy.

Airline issues were fast approaching pre-Sept. 11 levels. The group's main index , in fact, closed just 8.5 percent shy of its Sept. 10 closing level after tumbling up to 46 percent in late September. See airline stocks story.

The Dow Jones Industrial Average ran up 140.88 points, or 1.4 percent, to 10,574.29. J.P. Morgan, Boeing, Alcoa, General Electric and Home Depot tallied the most significant gains and only Hewlett-Packard, Coca-Cola and Procter & Gamble closed lower.

The Nasdaq Composite rose 24.11 points, or 1.3 percent, to 1,890.40 and the Nasdaq 100 Index racked up a gain of 21 points, or 1.4 percent, to 1,519.95.

In the tech sector, chip and storage stocks closed lower, with the latter stung by a grim warning from McData. But telecom and wireless shares flew on the wings of a profit reaffirmation from Sprint.

"This is certainly a big move for telecoms," remarked Scott Curtis, head of U.S. equity trading at Credit Lyonnais. "But the tech sector is still sitting on a huge amount of overcapacity."

Powers believes many investors will be willing to ignore lofty stock valuations as long as they see an economic recovery in front of them.

But there are still plenty of hurdles to overcome, such as the pre-announcement season and midquarter updates from key companies, Powers cautioned. In addition, spring marks the start of the seasonally weak period for the tech sector.

The Standard & Poor's 500 Index climbed 1.5 percent while the Russell 2000 Index of small-capitalization stocks gained 1.5 percent.

The latest piece of economic news revealed that factories continued to work off unwanted merchandise even as orders picked up. January factory orders, in fact, rose 1.6 percent while inventories fell 0.6 percent. The numbers were in line with economists' expectations.

The Fed's Beige Book report on economic conditions carried a more upbeat tone but also pointed to mixed conditions in some regions and showed that the labor market remains slack.

"The Fed's Beige Book acknowledged some of the improvement evident in recent economic data, but the tone of the survey could not yet be described as a ringing endorsement of the recovery story. This should not come as a surprise -- the Beige Book is not a forward-looking report," observed Ian Shepherdson, chief U.S. economy at High Frequency Economics.

Volume came in at 1.52 billion on the NYSE and at 1.91 billion on the Nasdaq Stock Market. Market breadth was decidedly rosy, with winners breezing past losers by 23 to 9 on the NYSE and by 23 to 13 on the Nasdaq.

Read After Hours for trading after the official closing bell.

Merrill goes neutral on U.S. equities
Merrill Lynch's chief global investment strategist David Bowers lowered his exposure to U.S. and U.K. equity markets while upping his exposure to Japan and global emerging markets in the first portfolio change since April 2001.

Bowers acknowledges that these recommended country shifts raise both the cyclicality and overall risk of a portfolio. He made similar changes to global sectors by increasing exposure to basic industries and downgrading utilities in a move that emphasizes his cyclical leaning.

"The U.S. equity market has been our favorite for the past ten months. It now moves down in our rankings from first to third as we shift from an overweight to a more neutral stance," Bowers told clients.

Concerns about U.S. equities have increased due to valuation, a possible de-rating of U.S. financials relative to the rest of the world and diminished investor demand for consumer staples, the Merrill strategist said.

"With the global recovery gathering momentum, we believe that now is the time to take a positive stance on the more cyclical equity markets around the world. We have increased our exposure in emerging markets from a neutral to overweight," he said.

Bowers believes that as the world economic cycle picks up, fund managers underweight Japan will have to change their tilt. He added that he "still finds it hard to get excited about European equities" as the "defensive qualities of [that] market look less desirable against the backdrop of global recovery."

McData slams storage shares; Sprint propels telecom
McData (NasdaqNM: MCDT - news) tumbled 26.9 percent after warning late Tuesday that it would not meet Wall Street's financial targets for the first quarter, citing cautious spending on technology products by larger customers. McData closed down a bruising 12 percent Tuesday after the company announced a lawsuit of competitor Brocade Communications for patent infringement. Brocade (NasdaqNM: BRCD - news) slid 4.4 percent.

Storage titan EMC (NYSE: EMC - news) , meanwhile, shed 2.2 percent after J.P. Morgan cut first-quarter earnings and revenue estimates for the company. J.P. Morgan also lowered its targets on McData and Inrange Technologies (NasdaqNM: INRG - news) , indicating that McData's negative pre-announcement highlights that high-end storage spending has been difficult to forecast for the first quarter. Inrange slipped 5.1 percent. Among other stocks in the space, Network Appliance slid 8 percent, Emulex 8.7 percent and QLogic 3.1 percent.

Telecom shares found substantial relief in Sprint's (NYSE: FON - news) announcement that it was on track to meet 2002 financial targets for 2002. Still, SoundView Technology lowered its rating on Sprint PCS to a "buy" from a "strong buy" due to liquidity issues and a competitive pricing environment. Sprint tacked on 8.7 percent while its wireless PCS arm (NYSE: PCS - news) sprinted 20.1 percent. Among other telecom concerns, AT&T ascended 1.1 percent while WorldCom gained 7.3 percent. And Qwest Communications (NYSE: Q - news) put on almost 14 percent even after a downgrade from Salomon Smith Barney to a "neutral" from a "buy." In the wireless group, Nextel Communications rallied 14.6 percent and AT&T Wireless 8.7 percent.

Meanwhile, two merger partners in the spotlight traded mixed. Dow company Hewlett-Packard (NYSE: HWP - news) lost 2 percent while Compaq Computer (NYSE: CPQ - news) jumped 3.8 percent. Advisory firm Institutional Shareholder Services recommended that its clients vote for the proposed $22 billion merger of H-P and Compaq on belief management's upside scenario is achievable. A formal shareholder vote is scheduled for March 19. SG Cowen said support from the ISS provided needed momentum to H-P management's uphill case, though the vote remains extremely tight. Cowen expects the proposed merger to ultimately get the thumbs up from shareholders.

But UBS Warburg analyst Don Young cautioned that the H-P/Compaq deal still faces large hurdles and believes it's more likely it won't go through.

"We continue to oppose the strategic rationale of this merger. While H-P remains attractive from a valuation perspective, we find the future potential revenue mix of a combined H-P/Compaq to be far less attractive. We recommend avoiding both stocks," Young told clients. His preferred PC and enterprise investment ideas remain Microsoft (NasdaqNM: MSFT - news) , IBM (NYSE: IBM - news) and Network Appliance (NasdaqNM: NTAP - news) .

While the broader chip group remained soggy, Intel (NasdaqNM: INTC - news) surrendered earlier losses and edged up 0.8 percent ahead of its midquarter update on Thursday. UBS Warburg expects Intel to "tighten revenue guidance" for the quarter "toward the mid point to slightly above the mid-point" on belief that processor demand is roughly in-line with or slightly better than the normal seasonal trend. Advanced Micro Devices slumped 1.8 percent and Micron Technology 4.2 percent.

Sun Microsystems (NasdaqNM: SUNW - news) will also provide its midquarter update after the close Thursday. Its shares fell 0.7 percent and were the second most actively traded on the Nasdaq.

Amazon.com shares (NasdaqNM: AMZN - news) recovered nicely, gaining 2.3 percent after falling as much as 7.2 percent intraday. The online retailer announced late Tuesday that its Chief Financial Officer Warren Jensen intends to resign later in the year but agreed to stay on until Amazon finds a successor

Broader market moves
Steel stocks had a banner day following news that President Bush imposed tariffs of up to 30 percent on most imported steel for three years. Checking the gains, Dow stock Alcoa (NYSE: AA - news) swelled 2.6 percent, Bethlehem Steel (NYSE: BS - news) 15.5 percent, U.S. Steel (NYSE: X - news) 1.6 percent, Alcan (NYSE: AL - news) 1.9 percent and AK Steel (NYSE: AKS - news) 3 percent. News of the U.S. move to protect domestic steel companies slammed Asian steel makers.

ImClone Systems' (NasdaqNM: IMCL - news) 20.2-percent surge lifted the biotech sector, which was among the biggest gainers in the broader market. ImClone and Bristol-Myers Squibb (NYSE: BMY - news) announced late Tuesday significant changes to their partnership to market anti-cancer drug Erbitux. The new terms appeared to remove the threat that Bristol-Myers would walk away from the deal. Bristol-Myers climbed 3.7 percent. Biotech behemoths Amgen and Biogen rose 2.8 percent and 4.2 percent, respectively. Check biotech stocks story.

Financial stocks ascended, with Deutsche Banc Alex. Brown's upgrade of Dow company J.P. Morgan Chase (NYSE: JPM - news) to a "strong buy" from a "buy" aiding the group. The firm cited attractive valuation, a bottoming risk profile and belief that J.P. Morgan has the most to gain from a strengthening economy as reason for its improved opinion. JPM climbed 4.7 percent while fellow Dow components American Express and Citigroup rose 2.2 percent and 2.1 percent, respectively.

Check Movers & Shakers for the latest individual stock action.

Treasurys whacked
Government bonds got smacked, with long issues taking the biggest lumps.

Mounting expectations that upcoming economic data will signal a sturdy rebound later in the year have caused inflation-obsessed bond market players to steer clear of fixed-income securities in recent sessions.

The 10-year Treasury note was off a hefty 12/32 to yield 5.05 percent while the 30-year government bond erased 25/32 to yield 5.545 percent.

Thursday will see the release of weekly initial claims, the revision to fourth-quarter productivity figures and the January consumer credit report.

In the currency segment, the dollar dropped 1.1 percent to 130.67 yen while the euro added on 0.5 percent to 87.59 cents.

[Foxlette]

NEW YORK (CBS.MW) -- The broader market is set for some steady action while techs are girding for a soft start to Wednesday's trading session as investors digest a profit warning in the storage sector.

March S&P 500 futures gave up 2.50 points, or 0.2 percent, and were trading a mere 0.40 point above fair value, according to HL Camp & Co. Nasdaq futures shed 12.00 points, or 0.8 percent and were trading 7.30 points under fair value.

McData tumbled 20 percent in dealings before the official opening bell. Late Tuesday, the company warned that it would not meet Wall Street's financial targets for the first quarter, citing cautious spending on technology products by larger customers.

McData closed down a bruising 12 percent Tuesday after the company announced a lawsuit of competitor Brocade Communications for patent infringement. Brocade (NasdaqNM: BRCD - news) lost $1.97 to $24.34 in the pre-open.

Storage titan EMC (NYSE: EMC - news) , meanwhile, shed 50 cents to $11.05 in the pre-open after J.P. Morgan cut first-quarter earnings and revenue estimates for the company. J.P. Morgan also lowered its targets on McData (NasdaqNM: MCDT - news) and Inrange Technologies (NasdaqNM: INRG - news) , indicating that McData's negative pre-announcement highlights that high-end storage spending has been difficult to forecast for the first quarter.

Two hardware companies in the spotlight traded mixed in early action.

Dow company Hewlett-Packard (NYSE: HWP - news) lost 59 cents to $20 in the pre-open while Compaq Computer (NYSE: CPQ - news) edged up 12 cents to $11.10. Late Tuesday, advisory firm Institutional Shareholder Services recommended that its clients vote for the proposed $22 billion merger of H-P and Compaq on belief management's upside scenario is achievable

Treasurys softer
Performance in the government bond market remained sub par, with short- and intermediate-term issues stretching their losing streak to five straight days.

Mounting expectations that upcoming economic data will signal a sturdy rebound later in the year have caused inflation-obsessed bond market players to steer clear of fixed-income securities.

The 10-year Treasury note was off 2/32 to yield 5.015 percent while the 30-year government bond erased 3/32 to yield 5.50 percent.

Wednesday's economic agenda includes the release of January factory orders and the Fed's Beige Book report on economic conditions.

In the currency segment, the dollar dropped 0.2 percent to 131.92 yen while the euro gave back 0.1 percent to 87.06 cents.

[Foxlette]

NEW YORK (CBS.MW) -- After vaulting higher for two consecutive sessions, the bulls are looking to take a step back to assess their accomplishment.

Economic data have taken center stage but investors will have to wait until Friday to get their fix for the week. Before that, in fact, only secondary indicators will litter the tape.

Tuesday will see the second-tier release of the non-manufacturing Institute of Supply Management Index, which economists see posting a 52.2 percent reading in February, up from the previous month's 49.6 percent. The index, which tracks the services sector, doesn't have a long history and is thus not accorded the same importance of the ISM manufacturing index.

The futures markets pointed to a soggy open. The March S&P 500 contract eased back 2.20 points, or 0.2 percent, and was trading around 4.40 points under fair value, according to HL Camp & Co. figures. And Nasdaq futures slumped 3.50 points, or 0.2 percent and were trading about 6.10 points above fair value.

There were plenty of analyst actions to home in on. The most noteworthy was Morgan Stanley's upgrade of chip kingpin Intel (NasdaqNM: INTC - news) to a "strong buy" from an "outperform," sending its shares up 85 cents to $32.70. Morgan cited expectations that Intel's near-term business conditions are "in line to slightly higher" than the consensus estimate. CS First Boston doesn't expect Intel to make material changes to its current outlook when it provides its midquarter update this week due to "limited visibility."

Four in a row for Treasurys
The budding growth story is one that has squashed the Treasury market for four days running.

Rising inflation expectations in the long end has pushed the yield on a 10-year note to a one-month high while fed funds futures have upped their tightening expectations over the past few trading sessions.

The 10-year Treasury note was off 7/32 to yield 5.025 percent while the 30-year government bond sputtered 1/8 to yield 5.515 percent.

In the foreign exchange sector, the dollar was again weak against the Japanese currency, dropping 0.3 percent to 131.66 yen while the euro shed 0.1 percent to 86.85 cents.

[Foxlette]

NEW YORK (CBS.MW) -- Stocks are set to gain some yardage once the opening bell sounds on Friday with investors ready to scrutinize a host of important economic reports.

Among the numbers on tap: the February Institute of Supply Management Index, January construction spending, January personal income and spending figures and the final reading on the February Michigan consumer sentiment index.

The futures markets registered gains, suggesting respectable upside at the open for both the tech sector and broader market.

The March S&P 500 contract rose 4.10 points, or 0.4 percent, and was trading around 4.20 points above fair value, according to HL Camp & Co. And Nasdaq futures gained 7.50 points, or 0.6 percent and were trading 7.10 points ahead of fair value.

Government bond prices slipped across the maturity spectrum.

The 10-year Treasury note was off 5/32 to yield 4.89 percent while the 30-year government bond erased 6/32 to yield 5.43 percent.

In the currency sector, the dollar edged up 0.1 percent to 133.37 yen while the euro lost 0.2 percent to 86.75 cents.

[Foxlette]

NEW YORK (CBS.MW) -- Shares are readying for timid gains at the open Tuesday after a powerful two-day run that pushed the Dow industrials into positive territory for the year.

Checking the numbers, March S&P 500 futures rose 0.70 point, or 0.1 percent, and were trading 0.80 points above fair value, according to HL Camp & Co. And Nasdaq futures gained 10.50 points, or 0.7 percent.

Among tech bellwethers trading before the official open: Cisco Systems, Juniper Networks, Advanced Micro Devices and Intel were all up around 10 cents.

Treasury focus
Government bonds clung to the flat line in early action ahead of Treasury's massive $25 billion 2-year note offering on Wednesday.

The 10-year Treasury note was off 2/32 to yield 4.86 percent while the 30-year government bond erased 1/32 to yield 5.37 percent.

In economic news, February consumer confidence will be out and is seen posting a 96.5 reading, down a touch from the previous month's level.

The confidence number is arguably the week's most interesting release. But the focal point for investors will be Fed Chair Alan Greenspan's speech ahead of a House sub-committee.

In the currency sector, the dollar edged up 0.1 percent to 133.97 yen while the euro declined 0.1 percent to 86.83 cents.

Germany's closely-watched IFO index of business confidence rose unexpectedly in February to 88.7 from January's 86.2. The surprising uptick lends credence to expectations for an economic recovery in Germany this year.

[Foxlette]

NEW YORK (CBS.MW) -- Investors remained shy in pre-open dealings Friday, with the top averages set to open near the unchanged mark and some timid sponsorship emerging in the beleaguered tech sector.

March S&P 500 futures rose 1.00 point, or 0.1 percent, but were trading 1.10 points under fair value, according to HL Camp & Co. And Nasdaq futures gained 6.00 points, or 0.4 percent and were trading 2.50 points above fair value.

Chip stocks, sacked on Thursday amid cautious analyst words on Intel, looked to recoup some losses.

Xilinx (NasdaqNM: XLNX - news) and Altera (NasdaqNM: ALTR - news) in particular were benefiting, with the former up $2 to $36 and the latter up $1.18 to $21 in European action. Both companies were upgraded by J.P. Morgan to a long-term "buy" from a "market perform."

Treasurys get another lift
Government bonds, which have benefited from the stock market's woes in recent sessions, opened on a higher note.

The 10-year Treasury note was up 6/32 to yield 4.83 percent while the 30-year government bond tacked on 10/32 to yield 5.345 percent.

No data is set for release on Friday. Late Thursday, economists of the National Association for Business Economics project that the U.S. economy will grow about 2.9 percent from the fourth quarter of 2001 to the fourth quarter of 2002 and about 3.7 percent in 2003. Additionally, the 37 economists surveyed said they were fairly certain of a recovery, with 60 percent surmising that the recession is already over. They put the odds of a double-dip recession at just 20 percent. and check economic calendar and forecasts.

In the currency space, the dollar declined 0.1 percent to 134.22 yen while the euro added 0.4 percent to 87.34 cents.

[Foxlette]

NEW YORK (CBS.MW) -- Stocks look ready to take a break on Thursday after using up energy to stage a massive late-day turnaround on Wednesday.

Performance in the tech sector was mixed, as software and Internet stocks couldn't overcome AOL Time Warner's and Computer Associates' woes.

Most of the Nasdaq's push into positive terrain hinged on a stellar performance in the hardware and chip sectors.

If the pre-open activity of chip leader Intel is of any indication, however, semiconductors may run into some problems on Thursday. The stock (NasdaqNM: INTC - news) , in fact, fell 64 cents to $30.80 in Instinet dealings.

March S&P 500 futures rose 1.70 points, or 0.2 percent, and were trading 1.20 points above fair value, according to HL Camp & Co. And Nasdaq futures erased 2.00 points, or 0.1 percent and were trading a mere 0.30 point above fair value.

Government bonds lost some traction across the board ahead of the day's swarm of data.

The 10-year Treasury note was off 2/32 to yield 4.895 percent while the 30-year government bond erased 1/8 to yield 5.40 percent.

Thursday's economic calendar is a crowded one. Releases on tap include weekly initial claims, the December trade numbers, expected to reveal a deficit of $28.3 billion, January leading economic indicators, expected to have risen 0.5 percent, and the Philadelphia Fed Index for February, expected to post a 14.7 reading.

In the currency sector, the dollar gained 0.4 percent to 134.24 yen while the euro edged up 0.1 percent to 86.98 cents.

[Foxlette]

NEW YORK (CBS.MW) -- While the stock averages appear poised to open on higher ground Wednesday, investors have another round of accounting revelations to zero in on, which may upset attempts to keep the market on firmer footing.

Tech stocks look especially vulnerable to selling pressure after the Nasdaq collapsed to its lowest level since Nov. 2 on Tuesday.

March S&P 500 futures rose 2.80 points, or 0.3 percent, and were trading 3.10 points above fair value, according to HL Camp & Co. And Nasdaq futures gained 6.50 points, or 0.4 percent and were trading about 11.20 points over fair value.

Investors had another inflation report to chew on, this time in the shape of the consumer price index, which climbed 0.2 percent both overall and at the core in January. The latter strips out the choppy food and energy components. Economists surveyed by CBS.MarketWatch.com had expected a 0.3 percent rise in the overall CPI and a 0.2 percent gain at the core.

Early movers
Software firm Computer Associates (NYSE: CA - news) lost significant ground in pre-open dealings -- around 12 percent -- after stumbling 6.5 percent on Tuesday following a Newsday article claiming that federal authorities began a preliminary investigation into its accounting tactics.

But Computer Associates defended its accounting methods and stated that it hadn't been contacted by authorities regarding any investigation and did not know what, if anything, was being investigated.

Meanwhile, the Wall Street Journal reported that General Electric (NYSE: GE - news) would begin releasing more details on businesses overseen by its GE Capital arm in its financial statements. The move came on the wings of a similar pledge from IBM Tuesday. Big Blue (NYSE: IBM - news) has been under intense pressure over the past couple of trading sessions as investors question its accounting practices following an article in the New York Times last week.

GE shares lost 10 cents to $36.30 in the pre-open while IBM rose 26 cents to $99.80. The latter closed at its lowest level since mid October on Tuesday.

Investors had some high-profile rating actions to home in on Wednesday.

Media and entertainment kingpin AOL Time Warner (NYSE: AOL - news) saw its rating slashed by Lehman Brothers to a "market perform" from a "buy" on lowered growth estimates for the company's AOL unit. Analyst Holly Becker expressed concern with the firm's costly transition to broadband and its European expansion.

Oracle (NasdaqNM: ORCL - news) , meanwhile, enjoyed an upgrade from Banc of America to a "buy" from a "market perform" based on belief that shares are attractively valued. BofA also feels Oracle's business has stabilized and may be showing signs of improvement.

AOL erased 3 percent while Oracle jumped 2.6 percent in trading before the official opening bell.

Bonds still soggy
Government bonds extended losses in the long end after putting on a shabby showing on Tuesday.

The release of a tame CPI didn't stoke any fresh buying interest in the Treasury realm.

The 10-year Treasury note was off 9/32 to yield 4.905 percent while the 30-year government bond erased 5/32 to yield 5.395 percent.

In the currency sector, the dollar added 0.1 percent to 133.65 yen while the euro declined 0.1 percent to 87.52 cents.

[Foxlette]

8:40AM : The futures are pointing to a lower open as techs are mostly lower. ONI Systems (ONIS 5.54) has agreed to be acquired by Ciena (CIEN 8.73) in an all-stock deal, but this deal appears to be a move made more out of desperation than opportunity. However, the deal is getting generally favorable comments from analysts...Cisco (CSCO 17.09) is down 2% on a NY Post article comparing Cisco's relationship with Sequoia Capital to Enron's off-the-books partnerships...
Housing Starts rose 6.3% in January, much stronger than the 1.595 mln consensus. Building Permits rose 3.1%, also well above consensus. These numbers once again confirm the resilience of the housing sector, and could provide a lift for homebuilder stocks such as KBH, MDC, CTX, PHM, and BZH....Overseas, European and Asian stocks were weak. The yen suffered its largest decline in 2 weeks vs the dollar after Japanese officials doused speculation of a bank-aid package...Current indications: S&P 500 futures are -6.8, or 6.8 pts below fair value. Nasdaq 100 is -17.0 or 15 pts below fair value.

[Foxlette]

did I steal that close of yours? [sly smile]

a morning warm up for you:

NEW YORK (CBS.MW) -- Shares are set to open close to the unchanged mark on Wednesday after ending on the downside Tuesday, interrupting a two-day winning streak.

March S&P 500 futures rose 1.50 points, or 0.1 percent, and were trading 1.40 points above fair value, according to HL Camp & Co. And Nasdaq futures rose 6.50 points, or 0.4 percent and were trading right around fair value.

Among shares trading before the opening bell, Applied Materials (NasdaqNM: AMAT - news) rose around 1 percent. The chip equipment behemoth reported late Tuesday a fourth-quarter profit from operations that surpassed the Wall Street consensus estimate.

Nortel Networks (NYSE: NT - news) , meanwhile, traded around flat levels in the pre-open following Tuesday's deep decline that took down the entire fiber-optic sector.

Treasury focus
Government bonds traded a touch lower out of the gate. The 10-year Treasury note was off 1/32 to yield 4.98 percent while the 30-year government bond erased 2/32 to yield 5.46 percent.

The week's marquee economic report is due out on Wednesday: January retail sales are seen increasing 0.1 percent overall and 0.4 percent excluding autos, according to economists polled by CBS.MarketWatch.com.

In the currency sector, the dollar dipped 0.2 percent to 132.33 yen while the euro erased 0.3 percent to 87.45 cents.

Moody's Investors Service said Japan's credit rating may be cut as much as two notches. The rating agency cited fears over deflation as well as the mounting debt held by the government.

[Phil(Hot Rod Chevy)]

Sherry,

have fun


Don't be stealing my close.

LOL


Have fun,
Phil

[Foxlette]

I really have to learn how to read piffer charts

I've been using TLC's formula for range calculations

we're missing you here in the states

stay safe

and

have fun

[JXM]

Sherry darlin, you really are too good to me.

my 1850 target on the comp was hit yesterday....at least close enough at 1846. I was expecting it to overshoot by a couple of points, so I think we may have another up day tomorrow.

http://www.stockcharts.com/webcgi/Pnf.asp?S=compq&Y=U&B=10&N=A&T=on

[Foxlette]

NEW YORK (CBS.MW) -- U.S. stocks are set to open on a down note Tuesday following two days of spectacular upside that came after five days of unrelenting selling pressure.

March S&P 500 futures dropped 4.10 points, or 0.4 percent, and were trading 6.10 points below fair value, according to HL Camp & Co. And Nasdaq futures declined 15.00 points, or 1.0 percent and were trading 22.40 points under fair value.

In shares trading before the opening bell, Canada's Nortel Networks stumbled to around $6.50, down 34 cents from Monday's close.

The company (NYSE: NT - news) told investors ahead of its investor conference Tuesday that revenue for the first quarter is expected to come in 10 percent below fourth-quarter levels and that it expects to return to profitability in the fourth quarter of 2002. The outlook was in line with Wall Street's expectations.

Further, the fiber-optic equipment behemoth said gradual revenue growth should commence in the second quarter, with Wall Street analysts currently forecasting a sequential increase of 5 percent in the period. Late Monday, meanwhile, Nortel said its chief financial officer, Terry Hungle, resigned amid questions concerning the company's 401(k) plan. CEO Frank Dunn will handle CFO duties until a new one is named.

Mundane trading for bonds
Government bonds traded close to the unchanged mark in early action after a day of losses Monday that came as stocks mounted another powerful rally.

The 10-year Treasury note edged up 1/32 to yield 4.91 percent while the 30-year government bond erased 2/32 to yield 5.405 percent.

No economic news is set for release Tuesday. The week's kingpin -- the January retail sales report -- will hit the tape on Wednesday.

In the currency sector, the dollar edged up 0.2 percent to 133.63 yen while the euro erased 0.1 percent to 87.54 cents.

[Foxlette]

morning Jorjio

looking like long might be the ticket today

NEW YORK (CBS.MW) -- U.S. stocks are looking to break a nasty five-day losing streak Friday that sent the Nasdaq to its lowest close since early November.

March S&P 500 futures rose 2.80 points, or 0.3 percent, but were trading 0.60 point below fair value, according to HL Camp & Co. And Nasdaq futures lifted by 10.00 points, or 0.7 percent and were trading 8.30 points above fair value.

Government bonds again traded lower, with the 10-year Treasury note off 1/32 to yield 4.94 percent while the 30-year government bond erased 9/32 to yield 5.43 percent.

Friday will see the second-tier release of December wholesale trade.

In the currency sector, the dollar added 0.4 percent to 134.23 yen while the euro gained 0.5 percent to 87.42 cents.

[JXM]

ah Sherry......merci beaucoup

[Foxlette]

NEW YORK (Reuters) - Stocks fell for the fourth straight session on Wednesday as Wall Street struggled with fears of rising bankruptcies and the accuracy of corporate bookkeeping.

``The monsters have been earnings disappointments, terrorists, now accounting,'' said Scott Vergin, a fund manager for the Lutheran Brotherhood, a money management firm in Minneapolis. ``In this environment, it's easy to lose ground and hard to make it up so you try and prevent disasters'' by being cautious.

Even an upbeat profit outlook from networking giant Cisco Systems Inc. (NasdaqNM:CSCO - news) and Tyco International Ltd's (NYSE:TYC - news) insistence it isn't facing a cash crunch couldn't buoy the market. Cisco after the close reported quarterly profits fell by more than half but still topped expectations, signaling corporate spending on technology may be turning around.

Long-distance telephone company Worldcom Inc. (NasdaqNM:WCOM - news) and other telecom stocks again slid. Worldcom has lost more than half its value this year as the beleaguered telecommunications sector has faltered under high debt levels and on fears about its quarterly earnings, expected on Thursday.

The broader Standard & Poor's 500 Index (.SPX) lost 6.52 points, or 0.6 percent, to 1,083.50 -- its lowest close since Oct. 31. The technology-laced Nasdaq Composite Index (.IXIC) dropped 25.44 points, or 1.38 percent, to 1,813.08. That's its lowest close since Nov. 5.

The Dow Jones industrial average (.DJI) was down 29.97 points, or 0.31 percent, at 9,655.46, its lowest close since Jan. 29.

Almost two stocks fell for every one that rose on the Nasdaq Stock Market, while decliners trounced advancers by a ratio of 19 to 11 on the Big Board.

``There are worries about something lurking in the bushes and you don't want to be a hero here,'' said Robert Streed, manager of the $400 million Northern Select Equity Fund. ``The market should have gotten at least a bounce after Cisco. Even if I can't see anything on the radar screen, I'm going to wait (to buy stocks) until I feel more confident.''

Earlier on Wednesday Cisco said it would exceed consensus earnings and sales estimates. That raised hopes sluggish corporate earnings are turning the corner and sent Cisco shares higher.

The computer networking firm, the second most-active stock on the Nasdaq, rose 11 cents to $18.61, but was well off a high of $19.25.

``Cisco was good news this morning and that gave us a lift but we ran out of gas,'' said Robert Basel, head of listed trading at Salomon Smith Barney. ``There is still a lot of fear about what could happen vis-a-vis the word 'accounting.'''

In the wake of the Enron Corp. collapse, investors are increasingly wary of minority investments in other companies, a practice that contributed to Enron's financial woes.

Conglomerate Tyco International Ltd. (NYSE:TYC - news) rose $2.82 to $25.92 and was the most active issue on the Big Board for the eighth-straight session. The company, caught recently in the sell-off related to accounting concerns, reassured investors it had no cash crunch or debts linked directly to its fallen share price, and stood by its accounting, calling it ``sound and appropriate.''

At the same time, Tyco warned it could miss its full-year earnings target because of higher borrowing costs, continued weakness in its electronics business and from the rumors and accounting worries that have clobbered the stock this year.

VeriSign Inc. (NasdaqNM:VRSN - news) was the latest company to be slammed by accounting fears. The computer security and Web address provider dropped $2.52 to $23.93 amid investor concerns about possible accounting issues related to minority investments, analysts said.

WorldCom has been the most-active company stock traded on Nasdaq for the past seven sessions, with more than 169 million shares traded on Wednesday. Shares dropped 28 cents to $6.69.

Bankruptcies in the telecom industry and downbeat results or outlooks from rivals AT&T (NYSE:T - news) and Sprint Group (NYSE:FON - news) also have hurt WorldCom shares.

``Many stocks are caught up in a cloud of uncertainty that is impacting them day after day,'' said Alan Ackerman of brokerage Fahnestock & Co.

AT&T shares lost 67 cents to $15.60, while Sprint dropped $1.19 to $12.64.

Quarterly earnings reports didn't bring much good news. General Mills Inc. (NYSE:GIS - news) sank $5.16 to $43.55 after the company, whose products include Cheerios cereal and Progresso soup, warned earnings would be lower than expected because sales operations were disrupted as a result of its acquisition of Pillsbury.

PepsiCo Inc. (NYSE:PEP - news) slumped $1.71 to $49.10. The soft-drink and snack-food giant reported a 16 percent rise in quarterly profits, but shares fell on worries archrival Coca-Cola Co. (NYSE:KO - news) is muscling in on the company's popular Gatorade sports drink brand after PepsiCo said that line faced ''intense competitive pressure.''

Coke shares gained 75 cents to $46.50.

Investors looked past an upbeat economic report. The Labor Department said the productivity of U.S. workers grew at a brisker-than-expected pace in the final three months of last year. The number of hours workers spent on the job fell at the fastest pace in more than a decade.

[Foxlette]

NEW YORK (CBS.MW) -- U.S. shares are set to open on a mixed note Wednesday, with strength emerging in the tech sector while the broader market is seeing some early weakness.

March S&P 500 futures erased 2.20 points, or 0.2 percent, and were trading 3.50 points below fair value, according to HL Camp & Co. And Nasdaq futures gained 9.00 points, or 0.6 percent, and were trading about 5.20 points above fair value.

European bank shares came under pressure as news that Allied Irish Banks suspected a fraud totaling $750 million at its Baltimore subsidiary hit the wires. A rogue trader in the foreign exchange division is believed to be at the center of the probe

Gold continued to trek higher following Tuesday's smashing performance. The futures markets are currently showing a gain of almost $4.90 to $304 on the back of a $9 advance on Tuesday.

Meanwhile, while not many economic reports are lined up for this week, one worth delving into is the fourth-quarter productivity report. It's seen rising 3 percent, according to economists polled by CBS MarketWatch.com, up from 1.5 percent form the third quarter. Productivity has held up amazingly well during the current recession, keeping inflation under wraps.

In the government bond arena, the 10-year Treasury note was up 1/32 to yield 4.895 percent while the 30-year government bond climbed 1/32 to yield 5.345 percent.

In the currency sector, the dollar fell 0.3 percent to 133.50 yen while the euro edged down 0.1 percent to 86.64 cents.

[Foxlette]

NEW YORK (CBS.MW) - The stock averages are looking to turn some of the vicious losses incurred in the previous trading day into gains on Tuesday, though the upside shaping up so far is modest.

March S&P 500 futures rose 0.50 point, or 0.1 percent, and were trading 1.00 point above fair value, according to HL Camp & Co. And Nasdaq futures erased 3.50 points, or 0.1 percent, but were trading 0.40 points above fair value.

Some of Monday's big losers continued to bleed: Irish specialty pharmaceutical company Elan Corp. (NYSE: ELN - news) slid 14 percent in the pre-open after taking a 50.1-percent drubbing on Monday while Tyco International (NYSE: TYC - news) traded around $29.30 in Europe, off 60 cents, following a 16.1-percent beating Monday.

Qwest Communications (NYSE: Q - news) announced on Tuesday its intention to sell up to $2.5 billion in debt and equity in a filing with the Securities and Exchange Commission. The long-distance company said the filing was a first step to reduce debt by $1.5 billion to $2 billion.

Meanwhile, Sprint (NYSE: FON - news) posted late Monday a fourth-quarter profit from operations that modestly surpassed Wall Street's expectations. Looking ahead, however, the No. 3 long-distance carrier said 2002 earnings are likely to come in at the low end of previous forecasts and that growth in its wireless business would also be slower. And Sprint PCS (NYSE: PCS - news) posted a fourth-quarter loss from operations that was a touch wider vs. expectations. The wireless company also said recent evidence points to slower growth in the industry over the next year.

Treasury focus
In the government bond arena, prices traded mixed in early action but failed to stray far from the unchanged mark. The fixed-income market is also awaiting the refunding auctions, with $16 billion in 2-year notes set for sale on Tuesday and $13 billion in 10-year notes on tap Wednesday.

The 10-year Treasury note was up 2/32 to yield 4.895 percent while the 30-year government bond edged up 1/32 to yield 5.345 percent.

On the economic front, Tuesday will see the second-tier releases of December factory orders -- expected to climb 1.2 percent -- and the January non-manufacturing index from the Institute to Supply Management.

In the currency sector, the dollar gained 0.7 percent to 133.21 yen while the euro shed 0.1 percent to 86.84 cents.

Rating agency Standard & Poor's downgraded seven major Japanese banks by various degrees, including Dai-Ichi Kangyo, Fuji and Industrial Bank of Japan, Yasuda Trust & Banking and Bank of Tokyo-Mitsubishi. S&P said the downgrades reflected a deterioration in financial conditions due to high and growing level of impaired assets, insufficient core earnings to meet credit costs, and widening shortfalls in capital to offset losses.

[Foxlette]

you must be a mind reader

I was just looking for new charting sites

can I warm you up a little this morning?

NEW YORK (CBS.MW) -- Stocks are set to begin the new week the way they closed the old one: on a downbeat note.

The futures markets, in fact, point to modest selling pressure at the open Monday despite an upbeat analyst report on the chip equipment group.

Checking the actual numbers, March S&P 500 futures declined 5.00 points, or 0.4 percent, and were trading 4.20 points below fair value, according to HL Camp & Co. And Nasdaq futures slumped 15.50 points, or 1.0 percent and were trading 11.70 points below fair value.

Goldman Sachs upped its view on the semiconductor capital equipment segment to a "market overweight" from a "market weight" on belief that orders will rise over the next several quarters. But Goldman acknowledged that upside in the group will be less than in previous cycles due to current valuations.

The brokerage upgraded KLA-Tencor (NasdaqNM: KLAC - news) and Teradyne (NYSE: TER - news) to the "recommended list" from a "market outperformer," ATMI (NasdaqNM: ATMI - news) to the "recommended list" from a "market performer" and Novellus Systems (NasdaqNM: NVLS - news) to a "market outperformer" from a "market performer." Finally, ringleader Applied Materials (NasdaqNM: AMAT - news) was dubbed as the best "single best idea" in the segment.

Separately, the Semiconductor Industry Association announced that worldwide sales of semiconductors were flat in the fourth quarter from the third quarter, ending three quarters of double-digit declines. The Americas, Europe and Asia-Pacific regions grew 3.7 percent in the fourth quarter on a sequential basis while Japan saw sales fall 11.8 percent in the quarter.

"Key demand drivers, wireless handsets and personal computers, bottomed out in the third quarter and recorded double-digit increases in the fourth quarter. In addition, U.S. companies were able to increase global market share to 51 percent from 50 percent," the SIA said in a statement. Going forward, the SIA expects flat to slightly higher sales for the first quarter of 2002 in a quarter that is typically a flat to down one.

Meanwhile, fund flow tracker Trim Tabs indicated that U.S. equity funds got inflows of $4.8 billion in the three days ending Jan. 31 for a monthly rate of $50 billion. And bond and hybrid funds saw $258 million in inflows. Trim Tabs said corporate liquidity remained markedly negative last week with few fresh cash takeovers and stock buybacks while new offerings topped $5 billion for a second straight week.

Trim Tabs notes that while sentiment indicators show Americans are increasingly optimistic about the future of the market, Corporate America continues to heavily sell shares.

"Several liquidity measures have not been this bearish since August 2000. Sell-side market strategists are saying that since the recession is over, investors should be buying stocks here. The only problem with that is corporate investors -- who have a better view of the U.S. economy than Wall Street -- are heavy sellers," president Charles Biderman said in a research note.

One long-time market watcher isn't very enthused with the economic recovery winds that are blowing.

"A removal of the inventory overhang is good news, but that will not lead to a sustained rising level of demand. Businesses and consumers are carrying a lot more debt than normal right now [and] unlike other recessions, consumers have continued to spend unabated during the current one, [courtesy of huge amounts] of re-financings. But consumers are now tapped, thereby offering little firepower going forward while businesses are flooded with excess capacity and little pricing power. This makes it extremely difficult for them to ramp up spending and as a result the economic recovery will likely be sluggish, not robust," opined Louis Navellier, portfolio manager of the Navellier Performance Funds.

Treasury focus
Government issues logged decent gains in early action on anticipated selling pressure in the stock market.

The 10-year Treasury note was up 9/32 to yield 4.935 percent while the 30-year government bond gained 11/32 to yield 5.37 percent.

This week will be a feather-light one in terms of economic news, with no reports on tap Monday and the main releases consisting of factory orders, weekly jobless claims and the quarterly productivity report -- data that probably won't stir markets much.

In the currency sector, the dollar edged up 0.1 percent to 133.20 yen while the euro added 0.3 percent to 86.37 cents.