Stocks Set To Open Lower Ahead of Greenspan

  • June 26, 2001
  • Greg Che

Stocks appeared set to open lower
Tuesday as earning warnings weigh on the market. Among other factors which could
be dragging the market lower is the highly anticipated Federal Reserve Meeting
scheduled this morning.

After the close on Monday, Applied
Micro Circuits
(
AMCC |
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PowerRating)  warned that Q1 earnings would be a loss between
4 to 6 cents vs. analysts’ consensus of a breakeven or zero cent gain.

The biotechnology firm ICOS Corp.
(
ICOS |
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PowerRating)
on Monday filed with the Securities Exchange Commission a shelf offering to sell up to $300 million in common stock and debt securities. ICOS
plans on using the proceeds from the offering to fund research and clinical
development, as well as general corporate services.

According to Reuters, Computer
Associates
(
CA |
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PowerRating) announced that the board has unanimously voted to add two new
directors.

John Hancock
(
JHF |
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PowerRating) will replace
Harcourt
(
H |
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PowerRating) in the S&P 500 after the close on June 27.

Alliance Gaming
(
ALLY |
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PowerRating) reported
late Monday night that the company will take a $6.6 million charge in the fourth
quarter. Alliance also provided updated guidance for fiscal year 2001 and 2002. The
gaming company announced it expects earnings for fiscal year 2001 ending on June
30 to be $2.20 per share and $3.05 – $3.15 for fiscal year 2002. Analysts’
consensus was for $2.11 for fiscal year 2001 and $2.56 for fiscal year 2002
according to Thomson Financial/First Call.

Merrill Lynch
(
MER |
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PowerRating) warned that
earnings will be between 52 to 57 cents for Q2. Analysts’ estimates were for 82
cents based on a survey taken by Thomson Financial/First Call.

Eaton Corp.
(
ETN |
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PowerRating) warned the
company will not meet analyst expectations for Q2. The company expects earnings
to fall short of analysts’ estimates by 20 to 30%. According to Thomson
Financial/First Call analyst estimates were for $1.21 per share.

Effective June 29 after the close, Rockwell Collins
(
COL |
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PowerRating) will replace Longs Drugs
(
LDG |
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PowerRating) in the S&P 500. Long Drugs will move to the S&P mid-cap 400 and will replace NCH Corp
(
NCH |
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PowerRating).

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