One Sector That Should Be Watched Closely

Goldman Sachs did a number on the software sector as it cut its estimates on
the following companies: Ariba (ARBA),
down 0.64%, Business OBJ (BOBJ),
down 5.49%, Documentum (DCTM),
down 3.34%, FreeMarkets (FMKT),
down 6.01%, HNC Software (HNCS),
down 0.50%, Hyperion Solutions (HYSL),
down 0.38% at 20.73, Informatica (INFA),
down 2.53% at 8.96, i2 Technologies (ITWO),
unch at 3.41, PeopleSoft (PSFT),
up 0.49% at 20.14, SAP Aktiengesell (SAP),
down 6.56% at 26.06, Siebel Systems (SEBL),
down 4.67% at 20.00, CheckPoint Software (CHKP),
down 7.62% at 17.32, Internet Security Systems (ISSX),
down 6.96% at 16.97, Quest Software (QSFT),
up 3.51% at 14.45, Rational Software (RATL),
down 7.01% at 11.93, Symantec Corp. (SYMC),
down 7.96% at 33.51, Verisign (VRSN),
up 0.90% at 10.06, and WebMethods (WEBM),
down 5.00% at 11.40.

Contrary to Goldman Sachs’ guidance, PeopleSoft
(
PSFT |
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PowerRating), up 0.49%
at 20.14, was upgraded by CSFB to “buy” from “hold.”

Software company Oracle (ORCL),
down 0.56% at 8.80, has had its estimates cut by Bank of America Securities
based on poor fundamentals caused by weak IT spending, competition, and less-than-perfect
execution.

Mobile phone king Nokia (NOK),
down 3.24% at 14.90, is reported by the Wall Street Journal to be under
pressure as phones become more like computers. The company is at risk of
becoming a “slave” to Microsoft (MSFT),
up 2.83% at 53.67, which develops software for the phones. Nokia has also
announced that it will be buying a 10% stake in Redback Networks
(
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PowerRating), up 18.50% at 2.69.

Computer maker Dell Computer
(
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PowerRating), up 0.44% at 27.00, had its
“strong buy” rating reiterated by Merrill Lynch who claims the company
possesses “superior long-term prospects.”

Food retailer Albertson’s
(
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PowerRating), up 5.94% at 34.06, gave its
sector a boost as it raised its fiscal first quarter earnings estimate, citing
its restructuring program as being more effective than previously anticipated.
Also in the sector, Kroger
(
KR |
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PowerRating), up 2.72% at 22.58, and Winn-Dixie
(
WIN |
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PowerRating), up 2.74% at 19.11.

Communications services company Worldcom
(
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PowerRating), up 16.19% at
1.65, announced that it will eliminate its tracking stock for its consumer
long-distance division MCI Group
(
MCIT |
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PowerRating), up 37.56% at 2.82, as it
drains $284 million a year from the company.

Clothing retailer Gap Inc.
(
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PowerRating), down 15.31% at 13.55, fell after
it was reported that its CEO, Millard Drexler, announced his plans to retire.

Home improvement retailer Home Depot
(
HD |
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PowerRating), down 1.44% at 44.25,
fell after Jeffries downgraded the stock to “hold” from
“accumulate.”

Auto maker Ford Motor
(
F |
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PowerRating), up 3.46% at 18.19, received its
second upgrade in as many days as Bank of America bumped it to “buy”
from “market performer.”