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JP Morgan raises estimates on Symantec, cuts ests for Network Assoc
JP Morgan raises SYMC's Sept qtr rev/EPS ests based on the expectation that the consumer biz is set to deliver another strong qtr and the belief that SYMC is gaining share in SME security mkt; also, firm cuts NET's Sept rev est below mgmt guidance based on antivirus rev concerns and a weak Europe; recommends lightening up on NET heading into the qtr.
08:51 ET JP Morgan raises estimates on Symantec, cuts ests for Network Assoc
JP Morgan raises SYMC's Sept qtr rev/EPS ests based on the expectation that the consumer biz is set to deliver another strong qtr and the belief that SYMC is gaining share in SME security mkt; also, firm cuts NET's Sept rev est below mgmt guidance based on antivirus rev concerns and a weak Europe; recommends lightening up on NET heading into the qtr.
08:24 ET YHOO Yahoo! benefits from positive research calls (9.91)
Stock spiked almost a full point just before the close yesterday on positive comments from Pacific Crest, which said that Yahoo was very upbeat at an analyst roundtable yesterday morning; those positive comments are being echoed this morning by USB Piper Jaffray, which said it believes that company is doing better than analysts' estimates reflect and that there is upside to its revenue estimate.
MSFT qtr on track: briefing ->
14:14 ET MSFT Microsoft: Sherlund sees quarter on track (46.46 +0.78) -- Update --
Goldman Sachs analyst Rick Sherlund says that MSFT is likely tracking about as expected for Q1 (Sep) and FY03; believes that while overall tech and PC unit forecasts for 2003 might be too high, his MSFT estimates only assume a modest 3-5% PC unit growth rate, and he notes that licensing activities have been strong this qtr.
KLAC: KLA-Tencor gives positive comments at conference (27.33 +0.70)
We are hearing that KLAC is now giving some marginally positive comments at the Banc of America conference; we're told that while the co maintained that the near-term outlook is still bleak, their presentation hasn't been as negative as some were expecting, which led to a spike in the stock as well as the SOX.
09:42 ET INTC Intel motherboard shipments being raised (14.22 +0.09)
Stock holding up well in a weak market; hearing that several brokerage firms (Piper, Salomon) are upping their estimates for September motherboard shipments, apparently the first uptick in some time; Piper analyst Ashok Kumar now sees Sep shipments up 13-14% vs prior estimate of 10% and sees low risk of further Q3 earnings disappointment.
Novellus CFO says orders could be at low-end of range
Monday September 23, 9:18 pm ET
SAN FRANCISCO, Sept 23 (Reuters) - Customer orders at Novellus Systems Inc. (NasdaqNM:NVLS - News), a maker of semiconductor production equipment, could be even lower than previously projected, Richard Hill, chief executive, said on Monday at the Banc of America Securities conference.
The San Jose, California-based company said in late August that it expected orders of $200 million to $220 million, down from $250 million, due to order delays by customers.
Now, they "could be lower than $200 million," said Hill. "But we hope not."
"Customers have pushed back on us," he added. "We've seen some cancellation."
Hill said he could not discuss financial expectations beyond that saying the company was in a mandated "quiet period" before reporting quarterly results.
Analysts polled by Thomson First Call on average expect the company to post third-quarter earnings of 9 cents per share on revenues of $236.4 million.
In August, the company lowered its third-quarter revenue forecast to $230 million from $250 million and its forecast for earnings to break-even from 2 cents per share.
http://biz.yahoo.com/rc/020923/tech_novellus_outlook_1.html
16:59 ET MYG Maytag guides lower for Q3 (24.32 -0.87)
Expects third quarter earnings from continuing operations to be in the range of $0.65 to $0.70 per share -- Multex consensus estimate is $0.78 per share.
15:09 ET QLGC QLogic sells off following presentation (26.95 -1.59)
We are hearing that QLGC just reaffirmed their previous Q3 forecast of 3-8% sequential rev growth during their presentation at the Banc of America investor conference; however, the stock has sold off in the last half hour as apparently the Street was expecting a higher number.
Bear market longest in 60 years; no end yet in sight
(Reuters 09/23 12:04:01)
By Nick Olivari
NEW YORK, Sept 23 (Reuters) - The current bear market in
stocks is already the longest in 60 years, and with few
investors willing to step up and buy, the likelihood is it will
go a little longer, market analysts say,
Worse news for some investors, the Standard & Poor's 500
index <.GSPC> is flirting with its most recent low, which makes
it perilously close to making this the deepest bear market
since 1938.
"It's not fundamentals causing this, but an overdose of
uncertainty with" the Iraq situation, said Anthony Chan, chief
economist at Banc One Advisors which oversees $150 billion in
assets.
With the Bush White House reviewing military options
against Iraq, investors are on tenterhooks as to the timing of
any action against the regime of Saddam Hussein. Any war could
be costly and derail the U.S. economic recovery as oil prices
rise and resources are diverted towards defeating Iraq.
Though Chan hopes the index won't retest the lows and go
into potential freefall, in the current climate he doesn't rule
out the possibility of another 5 percent to 10 percent drop in
the index, which would push it well past the depth of the
1973-1974 bear market.
The index last traded at 829.16, down some 45.7 percent
from its March 2000 high of 1527.46, and within points of its
most recent low on July 23.
Then it closed 47.77 percent from its all-time record
close. During the 1973-1974 bear market the index lost 48.2
percent before recovering ground, according to data from Banc
One Investments Advisors.
If it breaks that barrier, it will be the biggest bear
market drop since the 54.34 percent decline in the bear market
of 1937-1938.
And if it closes below that July 23 low of 826.95 in
September, another two months will be added to the length of
the current downturn. Through to July, it stood at 28 months,
the longest since the bear market of November 1938 to April
1942 which lasted 44 months, according to Banc One data.
MORE DECLINES BEFORE IMPROVEMENT
Most investors do say that things are going to get worse
before they get better.
Irrespective of any U.S. campaign against Iraq, concerns
about both the quantity and quality of earnings are another
drag on the market.
Low stock prices "are a reflection of how negative people
have become," said Lester Rich, a portfolio manager with
StoneRidge Investment Partners LLC. Base in Malvern, Pa, $600
million in assets.
"Corporate governance issues are still hanging over the
market, and its difficult not to pick up a newspaper and read
an Enron story" a year after the problems first became
apparent.
The energy company filed the largest bankruptcy filing to
date in December, having failed as its stock plummeted amid
investor unease over its opaque accounting and murky
"off-balance sheet" transactions.
It was the first of string of companies to announce
accounting problems, prompting investors to question the
accuracy of results and a backlash which finally saw company
executives attest to their corporate results.
And though S&P 500 companies are expected to post profit
growth of 8.4 percent in the third quarter, that's down from an
expectation of 16.6 percent at the beginning of the quarter,
according to Thomson First Call.
More troubling to some investors is that the number of
warnings to positive pre-announcements is rising, reversing the
trend of the last three periods.
With 882 pre-announcements, the ratio of negative to
positive is 2.2. That compares with a ratio of 1.2 in the
second quarter, 1.6 in the first and 1.8 in the fourth quarter
of 2001.
OPTIMISM?
Though the index could easily plunge into new territory on
more bad news, at least one investor sees a market rally in the
months ahead.
"The chances are we take out the lows but we may get a
rally in the fourth quarter," said Marian Kessler, portfolio
manager with Rutherford Investment Management LLC which
oversees $25 million from Portland, Oregon. "There is no way of
prophesizing but we may have a tough time in the first half of
October and then get an oversold rally."
Also remaining optimistic despite the doom and gloom
pervading the majority of shareholders, Chan said investors
should be looking at the low prices on stocks as opportunities
to buy given the long-term outlook for the economy and company
profits are improving. Though he admitted that "investors are
getting tired of the 'opportunity story'."
But with little good news coming through, and more risk
than reward on the horizon, investors are merely hoping that
the bottom is close, if it's not already in.
((Nick Olivari, Wall Street Desk, 646-223-6151))
REUTERS
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QLGC QLogic shares down on Sun Micro concerns (27.94 -1.05)
Shares were particularly weak at the open this morning, likely due to a pre-mkt Salomon Smith Barney note that said SUNW's acquisition of Pirus Networks has the potential to change the dynamics for QLGC's switch relationship with SUNW, which is a major customer of QLGC; maintains In-Line rating but cuts price target to $29 from $34.
when Maria tells the masses to go short, load up big time...
J.P Morgan's Warning Is So 1998
By Aaron L. Task
Senior Writer
09/19/2002 04:57 PM EDT
The echoes of Long Term Capital Management's implosion still reverberate on Wall Street -- and not just because the Dow Jones Industrial Average dipped below 8000, meaning it is essentially unchanged since September 1998.
The core lesson of Long Term Capital's shocking fall that autumn was that at extreme junctures, financial markets operate in ways that make models based on historic norms worthless, if not cancerous -- even those created by Nobel laureates. Yet recent announcements by J.P. Morgan (JPM:NYSE - news - commentary - research - analysis) and Fannie Mae (FNM:NYSE - news - commentary - research - analysis) suggest how the illusion of control that helped doom Long Term Capital remains very much a part of the firmament on Wall Street.
The most commonly used risk-management tools "rely on continuous, normally distributed markets, which isn't reality," observed Diane Garnick, global equity strategist at State Street in Boston. "Market practioners need to rely on expecting the unexpected, which academics can't model."
But the cases of J.P. Morgan and Fannie Mae suggest some firms are still prepared only for the expected, with disturbing echoes of Long Term Capital's fall.
Because of its early successes and high-profile partners, Long Term was able to leverage its roughly $2 billion capital base by a factor of more than 20 to 1 (some press reports in 1998 said as much as 80 to 1). After the Asian financial crises in 1997 and Russian debt default in 1998, Long Term Capital faced huge trading losses, prompting the Federal Reserve to arrange a bailout by its Wall Street lenders, whose own financial health was perceived to be at risk.
State Street's Garnick, who observed similarities to 1998 back in June, said yesterday, "I don't see a specific organization behaving like Long Term Capital."
But J.P. Morgan is the second-largest U.S. bank while Fannie Mae has the largest fixed-income portfolio. Furthermore, they are the world's largest dealer and customer of derivatives, respectively. Problems with either firm would have widespread implications for the financial markets, and the Fed is less able to help today than it was in 1998, what with the fed funds rate already at a 40-year low.
Seeing Ghosts, Part 1
Late Tuesday, J.P. Morgan warned about its third-quarter results, citing "high commercial credit costs concentrated in the telecom and cable sectors" as well as weak trading results. The former garnered loads of media attention, as it's easy to explain how lending to now-bankrupt telecoms caused J.P. Morgan's level of nonperforming assets to jump by nearly $1 billion in the first two months of the third quarter (even if the company was very circumspect about what, exactly, occurred to cause the jump).
As for the latter, Marc Shapiro, head of risk management at J.P. Morgan, said in a conference call Tuesday evening that the firm's trading revenue fell to $100 million in July and August from $1.1 billion in the second quarter, because "the normal diversification benefit we get from trading different instruments was not as prevalent in these periods as in the past." Shapiro stressed the losses were "not particularly concentrated" in any one area and that all trading units were within pre-established risk levels.
Basically what Shapiro and Chairman and CEO William Harrison said was that "everybody lost a little, and collectively, J.P. Morgan lost a lot" (or made a relatively paltry sum) observed Jim Bianco, president of Bianco Research in Barrington, Ill. "They should know that's exactly what happens when markets get under stress. In a crisis, markets become emotional and trade off the focal point, which is typically the stock market. In times of stress [their 'diversified' portfolio] becomes a giant bet on the S&P 500."
Such damaging correlations will happen to J.P. Morgan "again and again," he predicted, suggesting "the only thing that's going to bail them out is a bull market. Unless we have one, they've got real problems."
Because of J.P. Morgan's dominance of the derivatives market -- it's involved in $25.9 trillion, or 51%, of the $50.8 trillion notional value of contracts involving U.S. commercial banks and trust companies, according to the Office of the Comptroller of the Currency's second-quarter bank derivatives report -- some believe its potential problems have immense implications, on a far greater scale than even Long Term Capital Management.
"This isn't a bank but a hedge fund -- a hedge fund that makes LTCM and Enron look like T-bill money market funds," said Jim Pulplava, president of Puplava Financial Services, a Poway, Calif.-based firm with about $200 million under management.
The majority of J.P. Morgan's derivative contracts are not exchange traded, Pulplava noted, meaning "you don't know what the value is until you are forced to sell them in the marketplace."
Recalling past debacles, the fund manager and radio personality observed: "Most blowups occur when a financial entity has to unwind its positions and finds no buyers. The same thing that happened to Long Term Capital and Enron could happen to J.P. Morgan."
In the recent past, J.P. Morgan has countered such criticisms by noting that the vast majority of its derivatives exposure is with investment-grade counterparties and that its direct exposure is a very small percentage (less than 5%) of the derivatives' notional value, which refers to the total value of the contract. Yesterday, Bloomberg quoted a company spokesman as saying the firm's capital ratios and cash reserves exceed adequate levels and that the firm's liquidity is strong.
In the wake of the company's profit warning, Standard & Poor's lowered J.P. Morgan's credit rating to A-plus. The downgrade will have "some impact [but] a small impact" on J.P. Morgan's derivatives business, said Dina Dublon, J.P. Morgan's head of finance, on the firm's conference call. But she noted that J.P. Morgan maintains a double-A rating on its senior bank debt and "doesn't expect any meaningful impact" on its derivatives book.
Such comments did not alleviate the concerns of Pulplava, among others. J.P. Morgan "really is a house of cards standing on itself," he said in an interview Thursday.
Pulplava was particularly concerned about comments from S&P analyst Tanya Azarchs. In a conference call yesterday Azarchs said "we don't think the worst is over" for J.P. Morgan and that the firm needs to show "no other fundamental issues or surprises" in 2003 to avoid another ratings cut.
That's significant, because while an A-plus rating "may not hurt them all that much," another downgrade to single-A or below "is a breakpoint that has some significance," Azarchs said. "It could cause a downward spiral, [and] we can't not downgrade just because it might cause that downward spiral."
Isolated?
Nevertheless, many on Wall Street believe the firm's problems are its own and not a "systemic threat."
J.P. Morgan's problems were that "they were heavily lending to companies who were never going to produce positive cash flow," according to Sean Reidy, a portfolio manager at Robert Olstein & Associates, which has $1.4 billion under management. But whereas Long Term Capital was writing contracts with almost every firm on Wall Street and able to dramatically leverage its bets, "these guys have reserves," he said. "I don't think the risk of [nonperforming] loans is going to effect them materially in the long run."
Olstein & Associates has no position in J.P. Morgan. The fund manager suggested late Wednesday that the declines in names it does own, including Morgan Stanley (MWD:NYSE - news - commentary - research - analysis) and Merrill Lynch (MER:NYSE - news - commentary - research - analysis), were based on "sympathy with J.P. Morgan, not fundamentals."
Such attitudes suggest why each of the aforementioned closed well off session lows Wednesday, as did the Amex Broker/Dealer Index, which ended off 0.7% to 390.54 after having traded as low as 382.95. Thursday afternoon, the index closed down 5.6% to 368.73, thanks largely to Morgan Stanley's disappointing earnings repot Thursday morning, which is a fundamental issue.
Meanwhile, Bianco agreed that J.P. Morgan is not likely to be named "Miss Long Term Capital Management 2002." But he does worry that Fannie Mae could be a potential heir to Long Term Capital's tainted tiara, an argument we will examine in Part 2.
13:36 ET Mass. AG may recommend Eliot Spitzer take over CSFB probe
The wsj.com reports that Massachusetts Secretary of State William Galvin may make a formal recommendation to NY AG Eliot Spitzer that he file criminal charges against CSFB over the firm's research coverage; Mass. investigation has focused on e-mails and other evidence showing CSFB analysts felt pressured to avoid writing negative stock evaluations on current or prospective investment-banking clients of the firm; action could come as early as this afternoon.
13:09 ET Israeli troops enter Arafat compound in response to suicide bombings - Fox
ISRAELI FORCES OPEN FIRE ON YASSER ARAFAT'S RAMALLAH HQ-ARAFAT
(Reuters 09/19 09:32:33)
AIDE
REUTERS
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EDS <EDS.N> SEES Q3 REV, EARNINGS BELOW EARLIER GUIDANCE
(Reuters 09/18 13:06:14)
REUTERS
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15:32 ET XLNX Xilinx: cautious comments from RBC (16.64 -0.59)
Sources are telling us that RBC Capital believes XLNX is cutting wafer starts to UMC and will have to lower their guidance.
(SYMC) Symantec Collaborates With White House On National Strategy to Secure
(Business Wire 09/18 11:31:23)
Cyberspace
Business Editors/High-Tech Writers
CUPERTINO, Calif.--(BUSINESS WIRE)--Sept. 18, 2002--Symantec Corp.
(Nasdaq:SYMC), the world leader in Internet security, culminated its
involvement with a road map written by the White House for securing
the nation's critical cyber infrastructure by participating today in
the unveiling of the National Strategy to Secure Cyberspace at
Stanford University in Palo Alto, Calif.
Symantec's involvement with the Strategy began in February 2002
when it submitted its input to Richard C. Clarke, Special Advisor to
the President for Cyberspace Security and head of the President's
Critical Infrastructure Protection Board.
Symantec provided information and recommendations for securing the
nation's cyber infrastructure specifically at the small business and
enterprise level, outlining where the largest potential cyber threats
exist for businesses and the steps that need to be taken through a
public/private partnership to help businesses secure their computer
networks. In addition, Symantec also outlined best practices for
increasing security throughout the computer networks of government
agencies and entities. Lastly, Symantec provided Clarke with a
recommended list of top priorities for national IT security research.
"This initial strategy for securing the nation's cyberspace is a
sterling example of what public and private entities can do when they
work together for the benefit of the nation's best interests when it
comes to homeland security," said Clarke. "Symantec's help with the
Strategy was extremely beneficial, and we look forward to working with
them in the future as we continue to coordinate efforts for securing
the nation's critical infrastructure."
"With more than 85 percent of the nation's critical infrastructure
owned and operated by private entities, public/private cooperation is
critical to securing our nation's virtual borders," said John W.
Thompson, chairman and CEO, Symantec Corp. "This blue print creates a
national approach for individuals and enterprises to follow regarding
Internet security. We pledge our full support for expanding the
Strategy and helping to carry out its recommendations."
The National Strategy to Secure Cyberspace contains more than 80
specific recommendations for action, by the public and the private
sector, to improve cyber security. It highlights government and
private sector programs already underway to implement the strategy and
it raises topics and issues for continued analysis and debate that may
be included in future releases of strategy. The Strategy was developed
as a result of the outreach conducted by the President's Critical
Infrastructure Protection Board to individuals, businesses, academic
institutions, law enforcement entities and dozens of national
associations for their input on elements that should be included in
the Strategy, in addition to the issues surrounding national cyber
security that need to be addressed. The Strategy can be viewed or
downloaded at www.securecyberspace.gov.
About Symantec
Symantec, the world leader in Internet security technology,
provides a broad range of content and network security software and
appliance solutions to individuals, enterprises and service providers.
The company is a leading provider of client, gateway and server
security solutions for virus protection, firewall and virtual private
network, vulnerability management, intrusion detection, Internet
content and e-mail filtering, remote management technologies and
security services to enterprises and service providers around the
world. Symantec's Norton brand of consumer security products is a
leader in worldwide retail sales and industry awards. Headquartered in
Cupertino, Calif., Symantec has worldwide operations in 38 countries.
For more information, please visit www.symantec.com.
Note to Editors: If you would like additional information on
Symantec Corporation and its products, please view the Symantec Press
Center at http://www.symantec.com/PressCenter/ on Symantec's Web site.
All prices noted are in US dollars and are valid only in the United
States.
Symantec and the Symantec logo are trademarks or registered
trademarks, in the United States and certain other countries, of
Symantec Corporation. Additional company and product names may be
trademarks or registered trademarks of the individual companies and
are respectfully acknowledged.
--30--el/sf*
CONTACT: Symantec Corporation
Cris Paden, 408/517-8547
cpaden@symantec.com
or
Connect Public Relations
Sherri Walkenhorst, 801/373-7888
sherriw@connectpr.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: INTERNET GOVERNMENT NETWORKING SOFTWARE
SOURCE: Symantec Corporation
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com
S.BW SYMC
Cisco Systems revenue estimates may have to be lowered - Morgan Stanley (12.40 -0.14) -- Update --
Morgan Stanley is putting out some cautious comments on CSCO, saying they believe that the qtr may have been soft with component suppliers and that Street rev ests for next year may have to come down.
14:21 ET CSCO Cisco Systems revenue estimates may have to be lowered - Morgan Stanley (12.40 -0.14) -- Update --
Morgan Stanley is putting out some cautious comments on CSCO, saying they believe that the qtr may have been soft with component suppliers and that Street rev ests for next year may have to come down.
QLGC QLogic: cautious comments by Pac Crest (32.44 +0.29)
Pacific Crest in a pre-open note said that ADPT's warning last night raises concerns about QLGC's SCSI exposure, which accounts for about 33% of QLGC's rev; SCSI-related products make up about 70% of ADPT's rev.
09:53 ET QLGC QLogic: cautious comments by Pac Crest (32.44 +0.29)
Pacific Crest in a pre-open note said that ADPT's warning last night raises concerns about QLGC's SCSI exposure, which accounts for about 33% of QLGC's rev; SCSI-related products make up about 70% of ADPT's rev.
09:31 ET TXN Texas Instruments downgraded at Wedbush Morgan (18.27)
Wedbush Morgan downgrades TXN to HOLD from Buy based on valuation; in addition, firm downgrades their semi sector weighting to Mkt-Weight from Overweight due to poor visibility over the next 6 months, and cuts their semi sales growth forecast for 2002-04; cuts FY02/FY03 ests and price targets on ADI (target to $30 from $40), ISIL ($30 from $35), and MXIM ($43 from $50) as well.
09:21 ET MCD McDonald's issues earnings warning (21.69)
XLNX Xilinx upgraded by Needham (17.15)
Needham upgrades to STRONG BUY from Buy and raises price target to $27 from $25 due to valuation.
08:57 ET XLNX Xilinx upgraded by Needham (17.15)
Needham upgrades to STRONG BUY from Buy and raises price target to $27 from $25 due to valuation.
U.S. OIL FALLS $1.41/BBL TO $28.26 AFTER IRAQ CONSENTS TO
(Reuters 09/16 16:26:40)
READMIT ARMS INSPECTORS
REUTERS
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Iraq Agrees to Arms Inspectors, No Conditions-Annan
Mon Sep 16, 6:46 PM ET
UNITED NATIONS (Reuters) - Iraq has consented to readmit U.N. weapons inspectors without conditions, U.N. Secretary-General Kofi Annan ( news - web sites) announced on Monday.
"I can confirm to you that I have received a letter from the Iraqi authorities conveying their decision to allow the return of the inspectors without conditions," he told reporters
The pre-market tone continues to improve on relatively thin trading conditions. The better than expected retail sales data have had a limited early impact. Separately, asbestos worries have hit insurers in Europe as Allianz adds $750 million to its US asbestos reserves.
The pre-market tone has improved modestly on the better than expected retail sales data. The data were encouraging as it was feared strength in sales may be confined to the auto component. Instead, broad-based consumption gains point to a Q3 GDP increase in excess of 3%. The PPI numbers were also stronger than expected but are not likely to be an important factor.
HONEYWELL <HON.N> CEO SAYS "BROAD ECONOMIC RECOVERY IS NOT
(Reuters 09/12 13:18:47)
MATERIALIZING"
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HONEYWELL <HON.N> SEES 2002 ONGOING EPS $2.00-$2.05
(Reuters 09/12 13:17:46)
REUTERS
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16:13 ET INSP InfoSpace announces 1-for-10 reverse split (0.46 -0.04)
PPT headin to the hills?
14:46 ET AOL AOL Time Warner may get negative WSJ story, could miss estimates - Jefferies (12.63 -0.62) -- Update --
Sources are telling us that Jefferies believes there will be a negative article in the Wall Street Journal on AOL as early as tomorrow (perhaps not a bad bet, given how often the Journal carries negative AOL stories); in addition, firm reportedly expects AOL cash flow to increase by only 2% vs the 5-9% increase forecast by the co.
14:41 ET ADI Analog Devices down on Phillips warning, various rumors (23.97 -1.72)
Stock is hitting new lows for the session, due we're told to PHG's warning as well as rampant rumors that the co will preannounce, restate their results, lay off workers, etc. We have no confirmation for any of these rumors.
12:21 ET QCOM Qualcomm down on faulty chipset rumor (28.52 -0.69)
We are hearing that the stock has been weak today due to rumors that SK Telecom will delay a handset launch due to QCOM chipset problems; we have no confirmation for this rumor, however.
15:43 ET SUNW Sun Microsystems pressured by Hitachi, debt rumor (3.38 -0.13)
Shares are conspicously weak on a day that most hardware names have been in positive territory; we're hearing speculation among traders that the shares are getting hit (along with IBM -1.6%) on Hitachi's preannouncement and talk of pricing pressure at Hitachi Data Systems; in addition, we're also hearing rumors that SUNW may get hit with a debt downgrade (although this would have little more than a psychological effect, since the co has very little debt).
14:21 ET Marvell, Broadcom: takeaways from Intel Developer's Forum
Gerard Klauer Mattison says that INTC's announcement that its new Banias platform would include MRVL's gigabit Ethernet PHY puts to rest speculation that INTC might launch its own Gigabit PHY within weeks, although the timing is likely to be 6-9 months away... Pacific Crest believes that BRCM is seeing significant up-take in the wireless LAN mkt, which could be the fastest growing end mkt for BRCM in the next few qtrs; in addition, firm believes BRCM's ServerWorks unit is maintaining its lead in the high-end server I/O chipset mkt, despite INTC's effort to take share.
14:01 ET NTAP Network Appliance: positive comments from Pru (9.45 +0.15)
Following meetings with a number of storage co's, Prudential says that overall they believe that NTAP will be among the best positioned to leverage a rev recovery; co remains comfortable with their 2-5% QoQ rev growth target but expects growth to accelerate throughout the FY as the co gains share and ramps new products; in addition, U.S. and Asia/Pacific demand were noted to be improving while Europe was weakening.
12:00 ET Beige Book sees slow/uneven growth in most areas
13:49 ET NVDA NVIDIA raises Q4 wafer orders (10.70 +1.45) -- Update --
Dow Jones is reporting that NVDA raised wafer orders for Q4.
13:10 ET NVLS Novellus: cautious comments from BofA (24.98 +1.32)
Banc of America believes that NVLS's fundamentals have continued to weaken over the last several weeks, and that the co will lay off 7-10% of the workforce in the near future; however, firm believes that mgmt is strongly committed to staying profitable.