Reunited with their old guide, the bond market, stocks are set to churn this morning.
The bonds are back from their Columbus Day vacation and looking slightly cranky. At 9:00 a.m. EDT, the 30-year Treasury was down 12/32 to 98 21/32, putting the yield at 6.224%. Accordingly, the
futures were down 4.7, a couple points below fair value and indicating a negative bias to the open.
"The bonds are going to make it very difficult for the market to move higher," said Bill Meehan, chief market analyst at
The bond market will have to trump some very nice earnings reports to keep stocks lower this morning.
have already come out with upside third-quarter numbers.
Yesterday, with relatively few reports and without the sobering influence of the bonds, the market took a dry run with hardly unfamiliar results: Another tech-led rally on more poor breadth took the
Nasdaq Composite Index
to a new record high.
"Yesterday we saw what we saw all summer," said Meehan. "Tech and energy. And that's it. As long as the bond market is under pressure it's going to be difficult for tech stocks alone to hold
Tech leadership may soon get tested. Chipmakers
, both of which rallied strongly yesterday in anticipation of upside numbers, are scheduled to report later today. Though no one's very worried about Intel this quarter, investors will be watching to see whether the earthquake in Taiwan will have any effect on fourth-quarter performance.
No major economic data are due out today. Thursday will bring
figures for September, and the
Producer Price Index
comes out on Friday.
In Tokyo, stocks came back from a three-day weekend tentative, the
rising 28.63 to 18,090.81 ahead of tomorrow's key meeting of the
Bank of Japan's
policy board. The BOJ has given no indications that it is ready to take steps toward a quantitative easing of its monetary policy, which several government officials have aggressively advocated.
The dollar continued to consolidate after its recent strength against the yen, trading in a range between 106.9 yen and 106 yen overnight, and lately quoted at 106.29 yen.
In Hong Kong, worries over the deluge of new issues set to hit the market helped drive the benchmark
down 233.37, or 1.8%, to 12,759.35. The Hong Kong government will unload a good chunk of the stock it acquired during its $15 billion market intervention last August when it launches a massive index-tracking
fund on Oct. 25. In addition, Chinese oil company
yesterday announced plans to list 2 billion shares in Hong Kong and New York.
The big European indices were flat to lower in early afternoon trading. Frankfurt's
was 24.03 lower to 5390.47, while the Paris
was off 40.26, or 0.9%, to 4682.09. London's
was down a scant 0.2 to 6234.6.
Tuesday's Wake-Up Watchlist
Intel is expected to post earnings today. The
First Call/Thomson Financial
27-analyst estimate calls for the chip giant to earn 57 cents a share. Motorola is also expected to report earnings today. The 27-analyst estimate calls for Motorola to earn 53 cents a share.
posted third-quarter operating earnings of $1.34 a share, beating the nine-analyst estimate of $1.29 and above the year-ago operating earnings of 28 cents.
Earnings/revenue reports and previews
(Earnings estimates are from First Call/Thomson Financial.)
reported third-quarter earnings of 36 cents a share, better than the 12-analyst estimate of 33 cents and up from the year-ago 29 cents.
posted third-quarter earnings of 44 cents a share, beating the eight-analyst estimate of 40 cents and above the year-ago 26 cents.
Amway Asia Pacific
reported fourth-quarter earnings of 25 cents a share, well above the two-analyst estimate of 14 cents and the year-ago 5 cents. The company said fourth-quarter sales rose 84.8% in China.
Donaldson Lufkin & Jenrette
posted third-quarter earnings of 85 cents a share, topping the seven-analyst estimate of 76 cents and above the year-ago 15 cents.
posted third-quarter earnings of 50 cents a share before a special gain, 2 cents ahead of the 11-analyst estimate and up from the year-ago 37 cents, which excludes a special charge.
posted third-quarter earnings of 27 cents a share, in line with the 19-analyst estimate and up from the year-ago 24 cents.
Hertz reported better-than-expected third-quarter earnings of $1.28 a share, beating the nine-analyst estimate of $1.25 and the year-ago $1.09. The company also said longtime exec Frank Olson will retire from his CEO post Dec. 31, but will continue as chairman. The company's president and COO, Craig Koch, will succeed Olson as CEO.
said it expects third- and fourth-quarter earnings to fall below estimates. The company said it expects to post earnings between 52 cents and 54 cents a share in the third quarter. The eight-analyst estimate currently calls for earnings of 56 cents. The company also said it sees fourth-quarter earnings to come in at 40 cents to 45 cents. The current seven-analyst estimate calls for the company to earn 57 cents.
posted third-quarter earnings of $1.11 a share, beating the 10-analyst estimate of $1.04.
reported third-quarter earnings of 7 cents a share, beating the two-analyst estimate of a 19-cent loss and up from a year-ago 61-cent loss.
posted third-quarter earnings of 66 cents a share, ahead of the four-analyst estimate of 62 cents and up from the year-ago 47 cents. The company said earnings were helped by operational improvements and acquisitions.
reported third-quarter earnings of 54 cents a share, beating the 22-analyst estimate of 46 cents and above the year-ago 22 cents.
posted third-quarter earnings of 86 cents a share, beating the nine-analyst estimate of 83 cents and above the year-ago 51 cents.
reported third-quarter earnings of 64 cents a share, ahead of the six-analyst estimate of 57 cents and up from a year-ago 46 cents a share.
Mergers, acquisitions and joint ventures
said they set a three-year supply deal worth $150 million.
is in talks to buy
, according to published reports.
will use the Excite portal as an Internet launch page.
agreed to buy
for $171 million. HCC is offering $12.50 a share for each of Centris' 11.6 million shares outstanding. HCC also agreed to acquire $25 million in debt.
TD Waterhouse Group
said it signed a letter of intent to join the
electronic communication network (ECN)
consortium. Members include
, Donaldson Lufkin & Jenrette and
Spear, Leeds & Kellogg
to buy from neutral.
Bank of America
is expected to reveal today a service that will allow companies to set up an online store through the bank,
The Wall Street Journal
is behind schedule or over cost on more than a dozen of its fixed contracts with the
reported, citing people familiar with the programs.
has set a marketing pact with
, which will result in AOL kiosks at Universal Studios' Islands of Adventure theme park, the