Not Since Late ’98
Following the Fed’s surprise rate cut which some critics are even describing
as slightly panicky, stocks are set for a moderately lower open Thursday.
The Fed’s intraday, intra-meeting cut surprised Wall Street, and left some
traders wondering if the Fed sees more potential economic downside than was
previously thought or if there were even some sort of institutions (a la Long
Term Capital) that were teetering. Regardless of the reason, any move toward
easing remains a positive for stocks.
The Nasdaq futures are down 26.50 points, and the Dow futures are down 37
points.
The S&Ps look to open down 0.4 points while the yield on the 10-year
Treasury is 5.09%.
In economic news, the report covering November factory orders will be
released at 11:30 AM ET, and analysts expect to see a 1.2% increase. Again,
traders will be watching to see if this number also shows a rapid trailing off
as was evident in the NAPM on Tuesday, and construction spending Wednesday.
Thursday Movers
Sun Microsystems
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PowerRating) is an institutional favorite that soared 29%
Wednesday, and the networking giant is poised for a positive open Thursday. Sun
closed Wednesday at 31 1/2 and is trading up to 32 1/4 in pre-market activity.
Following its 2-day 40% run, the recently invigorated WorldCom
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PowerRating) is
hanging on to Wednesday’s big gains. WorldCom closed up 4 9/16 to 19 7/8 on more
than double average volume and is currently tading down slightly to 19 11/16 in
pre-market activity.
Juniper Networks
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PowerRating) gapped down Wednesday at the open but was on its
way higher when the Fed cut and finished the day up 29 1/2 to 132 1/16. Juniper
is currently trading down to 130 1/4 in pre-market activity.
BMC Software
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PowerRating) said after the bell Wednesday that it expected
fourth quarter profits to top analyst estimates. After closing Wednesday up 3 to
15 5/8, BMC is trading up to 20 1/8 in pre-market activity.