January Effect Strikes These Stocks…
U.S. stocks rose on optimism the economy and
corporate profits are rebounding from recession. EMC Corp., the seventh biggest
loser in the S&P 500 last year, extended yesterday’s 10% advance.
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is trading at 16.36, up 1.56.
Cisco Systems and Intel are on the rise today.
Corporate spending on computers and software will rise about 3% this year after
falling 1% in 2001 according to a Merrill Lynch & Co. survey of chief
information officers. Cisco
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that any pick up in demand will have the potential to help boost earnings
leverage.
The Nasdaq Composite Index
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is up 51.08 to 2030.33 in its biggest advance in a month. The S&P 500
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Industrial Average
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Some 550 million shares traded on the NYSE by
11:40 a.m. New York time, about 3% less than two weeks ago. About three stocks
rose for every two that fell on the Big Board.
The so-called “January effect” was in
evidence as communications equipment stocks — the worst-performing group in the
major indexes last year — rose.
January Effect
Nortel Networks
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at 8.18, up .45. Comverse Technology
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24.42. JDS Uniphase
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has dropped 9 cents to 15.49, and Corning
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to 9.57. Each lost at least three quarters of their value last year as
bankruptcies among smaller phone and Internet companies and reduced spending by
larger firms led to a glut of telecommunications gear.
Dow Chemical
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to 35.28, even as the largest U.S. chemical maker said it doesn’t expect to meet
its previous fourth-quarter earnings estimate of 10 – 20 cents a share because
of “softer volume” in some businesses and “continued margin
compression” in basic chemicals and plastics.
Wall Street Firms Gain
Securities firms rose on optimism a recovery in
stocks will lead to a revival of their earnings after Wall Street suffered its
biggest decline in seven years.
Goldman Sachs
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92.27, as last year’s top stock underwriter and merger advisor more than doubled
a planned bond sale to $2.75 billion.
Internet brokers led the 2.3% advance in the Amex
Broker/Dealer Index, its biggest gain in four weeks. E*Trade Group
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is at 11.16, up .66. Charles Schwab is higher by 1.00 to 16.56, and Ameritrade
Holding Corp.
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Peregrine Systems
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to 9.05. The software maker said it expects a per-share loss of 7 – 8 cents a
share, excluding certain items, because of “challenging global economic
conditions.” Analysts had expected the company to earn 10 cents a share.
Gemstar-TV Guide International
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is down 3.18 to 24.86. Robertson Stephens analyst Lowell Singer said Gemstar’s
case before the International Trade Commission charging competitors with
infringing its patents on set-top cable television boxes faced a more effective
challenge than he had anticipated. He lowered his rating to “buy” from
“strong buy.”
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