TheStreet.com's WEEKEND BULLETIN October 2, 1999
Market Data as of Close, 10/1/99: o Dow Jones Industrial Average: 10,273.00 down 63.95, -0.62%
o Nasdaq Composite Index: 2,736.85 down 9.31, -0.34%
o S&P 500: 1,282.81 up 0.10, 0.01%
o TSC Internet: 647.12 down 0.26, -0.04%
o Russell 2000: 423.53 down 3.77, -0.88%
o 30-Year Treasury: 99 26/32 down 1 09/32, yield 6.145%
For the week: o Dow Jones Industrial Average: down 0.1%
o Nasdaq Composite Index: down 0.1%
o S&P 500: up 0.4%
o TSC Internet: up 4.8%
o Russell 2000: up 1.5%
Companies in Today's Bulletin: Amazon.com (AMZN:Nasdaq)
LaserPacific Media (LPAC:Nasdaq)
In Today's Bulletin:
o Stock Mart: LaserPacific Media
o Wrong! Dispatches from the Front: Drugs Up as Boring, Slow Money Pours In
o Evening Update: Sun Seeks Stock Split; Intel Drops After Hours on Barron's Story
o Bond Focus: Treasuries Collapse Under Manufacturing Survey's Weight
TheStreet.com on the Fox News Channel Gruntal's Peter Green does the "Drill" with Herb Greenberg and Dan Colarusso. Find out which stocks the technical analyst likes and which ones he'd most like to short. And Gary B. Smith goes head-to-head with Adam Lashinsky over two top market indexes in Chartman. Will it be buy, sell or hold for the Nasdaq and the S&P 500? Also, Jim Cramer's calling for a rough road in the month ahead. He'll tell how he plans to dodge the missiles of October. "TheStreet.com" on the Fox News Channel airs Saturdays at 10 a.m. and 6 p.m. ET and Sundays at 10 a.m. ET. FNC is Fox's 24-hour cable news channel. To find the Fox News Channel in your area, call your local cable operator or see our "TSC on Fox" page at www.thestreet.com/tv (look for the yellow box in the upper right hand corner).
Also on TheStreet.com:
The Coming Week: Market on Edge Ahead of FOMC Meeting TuesdayThough the FOMC is unlikely to hike rates, some economists foresee a shift to a tightening bias. What do you think about the week ahead? Tell us on our message boards.
Internet: Action in z-Domain Names Heats Up as Amazon Starts Buying A man calling himself a Canadian lawyer has bought domain names that Amazon has confirmed it acquired.
Trade Winds: A Revealing Incident Sheds Light on China's Government and Global Economic Attitude The one-day-only visit to Washington seems to indicate that the Chinese are lukewarm to a trade deal.
Internet: Rumors of a Split Fail to Distract Excite@Home's Stevens From the Art of the Deal Excite@Home's Mark Stevens continues to project a bright future for the company's hybrid model of content and access.
Stock Mart: LaserPacific Media By
10/1/99 8:52 PM ET If you're looking for cheap, undiscovered media companies, pay attention to Russell Anmuth. Last year, Anmuth, a hedge fund manager at Gotham Holdings, pounded the table on Gemstar ( GMST), the leader in the obscure but profitable business of programming guides like VCR Plus+. Since a July 1998 TSC
|Recent Stock Mart Inventory|
|Stock||Story Date||Initial Price||Thurs. Close||% Change||% Chg. of |
S&P 500, Russell 2000
|Stride Rite |
| ||8||7||-13%||-3.9%, |
| ||76 9/16||6 3/16||-5.7%||-5.1%, |
|Arkansas Best |
| ||13 5/16||12 3/8||-7%||-5.5%, |
|Priority Healthcare |
| ||25 3/8||30 7/8||+22%||-4.9% |
| ||12 1/2||12 11/16||+1.5%||-4%, |
|L-3 Communications |
| ||40 1/4||37 3/4||-6.2%||-3.4%, |
|Caremark Rx* |
| ||7 9/16||5 3/4||-24%||-1.4%, |
| ||18 7/8||23 3/8||+24%||-3.5%, |
|American Medical Security |
| ||10 1/8||6 1/2||-36%||-5.5%, |
|J&J Snack Foods |
| ||24 1/16||19 3/4||-18%||-9.6%, |
|*Formerly traded as MedPartners (MDM:NYSE).|
Wrong! Dispatches from the Front: Drugs Up as Boring, Slow Money Pours In By
10/1/99 4:09 PM ETHow in heck can Merck ( MRK) be up four? On a day when the bonds are terrible? How about Lilly ( LLY)? Believe me, it is not just the fundamentals. Here's how I think it occurs. At the end of a quarter people sell all of their dawgs. The drugs have been total pounders. Amazingly, this is how these stocks look WITHOUT SELLERS. That's what happened. The sellers finished. Normal S&P buying at the beginning of a quarter is now coming in. These stocks are heavy in the S&P. When that boring, slow money comes in, it moves up anything where there are no natural sellers. (This is what has happened for the last five years, so I hope it doesn't seem too revelatory). So the drug stocks all moved today. Remember this pattern. It happens quite frequently. I
Evening Update: Sun Seeks Stock Split; Intel Drops After Hours on Barron's Story By
10/1/99 8:52 PM ET According to a Securities and Exchange Commission filing, Sun Microsystems ( SUNW) has asked its shareholders to approve a 2-for-1 stock split, which would double its authorized stock to 3.6 billion. The stock split, which will be voted on by shareholders Nov. 10, would be payable Dec. 9.
After-Hours MarketsCNBC, in its weekly Barron's preview, revealed that Intel ( INTC) would be the subject of a negative cover story to be released this weekend. The news, which broke around 7 p.m. EDT, sent Intel's stock down in after-hours trading on Island ECN. Nonetheless, Friday night trading is thin and tonight is no exception. Aside from Intel, not much else was moving on Island ECN. Digital Insight ( DGIN) continued trading on the popularity of its IPO, while tech stocks dominated the rest of the chart.
|10 most active stocks on Island ECN (8 p.m. EDT)|
|Digital Insight (DGIN)||32 1/8||+1/8||39,372|
|Dell (DELL)||42 1/2||+1/16||37,732|
|Excite@Home (ATHM)||45 7/16||+7/8||28,128|
|Oxford Health Plans (OXHP)||12 5/8||+1/16||26,460|
|Sun MicroSystems (SUNW)||92 3/8||+3/8||24,220|
|Intel (INTC)||72 1/2||-2 7/16||23,498|
|Microsoft (MSFT)||90 1/4||+1/4||14,028|
|Acclaim Entertainment (AKLM)||8 9/16||+3/8||12,800|
|CMGI (CMGI)||99 3/8||+3/16||10,464|
Mergers, acquisitions and joint venturesCMGI's ( CMGI) Web search engine AltaVista said it inked a three-year $65 million agreement with HealthCentral.com that calls for the site to supply content for AltaVista's health channel, which is set to debut in late fall. HealthCentral.com will pay a small amount of the $65 million in equity, while the remaining payment will depend on quantity of traffic that is directed to the site from the channel.
Earnings/revenue reports and previewsCeridian ( CEN) warned investors that its fourth-quarter earnings would be 25 cents to 27 cents a share, missing the 10-analyst estimate of 31 cents. The company blamed the disappointing results on Y2K complications. Ceridian said, however, that it expects third-quarter and fiscal 2000 earnings to meet the 11-analyst estimate of 24 cents a share and the 11-analyst estimate of $1.31, respectively. Olsten ( OLS) revised its results for its second quarter, third quarter and fiscal 1998 along with its 1999 first and second quarter. The company posted a revised loss of 44 cents a share for fiscal 1998, greatly differing from its initial report of a 5-cent profit. For its first quarter 1999, Olsten restated its loss to 28 cents a share, better than first report of a 77-cent loss. The company said the revisions, which were necessary to account for $56 million special charge from a two health-care investigation settlements and roughly $2 million in other charges, should not alter the details of its planned merger with Adecco ( ADECY).
Offerings and stock actionsREIT Manufactured Home ( MHC) said it will add 1 million shares to its existing share repurchasing program.
MiscellanyAetna ( AET) said a Philadelphia federal judge rejected a class-action lawsuit brought on by the Foundation for Taxpayer and Consumer Rightsand three plaintiffs claiming that the company breached federal racketeering statutes and state law. Broadcom ( BRCM) founder Henry Nicholas said he did not intend to buy a sports team, squashing rumors that the billionaire was pinning Disney's ( DIS) Anaheim Angels and Mighty Ducks as possible acquisitions. Nicholas did say, however, that his company was attempting to help Disney forge a deal with another undisclosed buyer that partial to lending Broadcom media and interactive rights to the teams. The Teamsters union said that it has granted the request of Union Pacific ( UNP) division Overnite Transportation to allow workers to elect union representation. A Teamsters spokesperson said the union decided to allow the vote after Overnite's Sept. 29 press release urging it to let the "democratic process decide" if its workers wanted
Bond Focus: Treasuries Collapse Under Manufacturing Survey's Weight By
10/1/99 5:17 PM ET
Street Sightings: Vern Hayden will be on Bloomberg Television's "Bloomberg Personal" starting at 6:30 a.m. EDT, Sat., Oct. 2 on the USA Network.
Copyright 1999, TheStreet.com