What Wall Street Is Pondering…
The major indexes are in the red today as traders
ponder economic chaos and rioting in Argentina, and profit warnings from Juniper
and Jabil Circuit. The selling today is concentrated in technology, as select
blue chips remain pockets of strength. The Nasdaq has broken its upward trend
line.
Market breadth favors the down side, with the
Nasdaq experiencing over 5:1 down-volume to up-volume, and declining issues
leading advancing issues by over 2:1.
U.S. weekly jobless claims surprised Wall Street
with a five-month low of 384,000 for the week ending Dec. 15. Analysts
were expecting a number around 430,000.
AT&T
(
T |
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PowerRating), up 8.10% at 18.16, chose a
bid from Comcast
(
CMCSK |
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PowerRating), down 6.65% at 35.54, over
Cox Communications
(
COX |
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PowerRating), up 4.04% at 39.94, and AOL
Time Warner
(
AOL |
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PowerRating), up 1.12% at 33.40, to merge its cable
television
business. AT&T shareholders will receive $47 billion worth of Comcast shares,
and Comcast will receive $25 billion in debt and other liabilities.
The second largest maker of Internet routers,
Juniper Networks
(
JNPR |
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News |
PowerRating), down 15.09% at 19.47, announced that fourth
quarter earnings will fall short of expectations by 50%.
Electronics manufacturer Jabil Circuit
(
JBL |
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Chart |
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PowerRating),
down 12.32% at 21.70, reported that earnings fell more than 80% due to weakening demand from computer and telecommunications companies.
The leading sectors today are the Gold and Silver
Index
(
$XAU.X |
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Chart |
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PowerRating), up 2.00% at 55.50, and the Computer
Hardware
Index
(
$HWI.X |
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PowerRating), up 1.40% at 153.46.
The weakest sectors today are the
Semiconductor Index
(
$SOX.X |
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PowerRating), down 4.60% at 512.85, and the
CBOE Internet Index
(
$INX.X |
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PowerRating), down 3.87% at 127.83.
From our percent gainers
list:
FMC Technologies
(
FTI |
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PowerRating) is up 10.14%
at 15.53 on over twice average volume. This oil well services and equipment
company has no news reported.
NDC Health Corp.
(
NDC |
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News |
PowerRating) is up 9.61% at
32.05
on over 100% average volume. This health information provider reported
second quarter fiscal earnings of 33 cents, beating analysts’ expectations by a
penny.
Fleetwood Enterprises
(
FLE |
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Chart |
News |
PowerRating) is up 8.75% at
11.19 on 100% average volume. This mobile home and R.V. maker appointed
two new officers today.
From our percent losers
list:
Novoste Corp.
(
NOVT |
Quote |
Chart |
News |
PowerRating) is down 24.01% at
9.05 on over five times average volume. This medical equipment and
supplies company’s CEO left to join Medtronic.
Terayon Communications Systems
(
TERN |
Quote |
Chart |
News |
PowerRating)
is down 9.27% at 12.23 on over six times average volume. This communications
equipment maker did not receive the cable modem certification needed to upgrade
cable operators. The company cannot be certified again until March of 2002.
Vans Inc.
(
VANS |
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Chart |
News |
PowerRating) is down 17.81% at 11.49 on over
16 times average volume. This footwear
company reported that second quarter fiscal earnings declined by 17% and they
expect earnings to decline in the future.