|
Wall St. crunches numbers
|
 |
April 25, 2000: 7:03 a.m. ET
Five Dow components join telecoms, techs in reporting results,
|
NEW YORK (CNNfn) - Corporate financial results will again dominate Wall Street Tuesday as technology stocks attempt to snap a three-session decline and "old economy" issues seek to build on two days of gains.
Early indications suggest U.S. stocks will open flat to slightly higher.
 S&P futures on the Globex trading system were up 3.40 points at 1,440.40 early Tuesday, while Nasdaq 100 futures were up 10 points to 3,427.
That gain on the S&P futures is just below fair value for the futures -- a formula taking into account interest and dividend effects -- which was estimated by London traders at 1,440.47. Typically, one point of difference between the futures index and fair value equals about eight points on the Dow Jones industrial average as trading opens, so the futures would suggest the Dow will open relatively unchanged.
The Nasdaq fair value was set at 3,385.28, so the futures are 51.72 above that point.
 On Monday, U.S. stocks finished mixed. The Nasdaq composite fell 161.40 points, or 4.4 percent, to 3,482.48 -- hurt primarily by the 15.6 percent decline at Microsoft Corp. (MSFT: Research, Estimates), which issued a warning about future revenue and was the subject of reports that regulators are seeking at least a partial breakup of the company.
Even though Microsoft is a Dow component, the Dow Jones industrial index rose 62.05 points, or 0.6 percent, to 10,906.10. But the S&P 500 index, a broader blue-chip measure, slipped 4.68 points, or 0.3 percent, to 1,429.86.
Markets ended mixed in Asia Tuesday. Tokyo's benchmark Nikkei index fell 1.1 percent to 18,272.33, while Hong Kong's Hang Seng index closed up 12.87 to 15,380.01. Singapore's Straits Times index finished up 14.22 points, or 0.7 percent, to 2,064.
In morning trading in Europe Tuesday, London's benchmark FTSE 100 fell 34.00 points to 6,207.20, while the Paris CAC 40 fell 35.48 to 6,199.03. But Frankfurt's Xetra Dax index gained 8.95 points to 7,166.9, and Zurich's SMI rose 17.30 to 7,388.4.
In the Treasury market, the 30-year bond rose 2/32 of a point in price in trading early Tuesday, but the yield was virtually unchanged at 5.87 percent.
In the currency market, the dollar strengthened versus the euro but slipped versus the yen in early trading Tuesday. The euro was worth 93.32 cents, compared with 93.98 cents in late trading Monday. Meanwhile, the dollar fell to 105.45 yen in early trading from 105.69 yen.
Click here for Monday's after-hours news.
Click here for Monday's after-hours trading.
Click here for Monday's earnings round up.
Click here for after-hours trading quote
Click here for current world markets
 In company news, a bidding war broke out for Champion International Corp. (CHA: Research, Estimates), as Dow component International Paper Co. (IP: Research, Estimates) offered $6.2 billion in stock and cash for the company that was already in merger talks with Finland's UPM-Kymmene.
The offer revealed late Monday offers Champion shareholders $43 in cash and stock worth $21 for each share, a 20 percent premium over the $52.74 per share offered by UPM-Kymmene. In addition to the stock and cash, the IP offer would assume $2.3 billion in Champion debt.
Shares of Champion rose 1 to 51-7/16, while IP shares gained 7/8 to 40 in Monday trading.
Aerospace manufacturer Lockheed Martin Corp. (LMT: Research, Estimates) reached a tentative agreement Monday night with union negotiators representing about 2,500 machinists who have been on strike against the giant defense contractor for two weeks. Union members are set to vote on the pact Wednesday.
Lockheed will also join the flood of earnings reports due Tuesday. Analysts surveyed by earnings tracker First Call predict it made 10 cents a share in the first quarter, down from 51 cents a share a year earlier.
Shares of Lockheed gained 3-3/16 to 25-7/8 in trading Monday.
Five Dow components -- Minnesota Mining and Manufacturing Co., Dupont Co., Exxon Mobil Corp., SBC Communications Inc. and Procter & Gamble Co. -- are scheduled to issue financial results Tuesday.
Analysts forecast that 3M (MMM: Research, Estimates) made $1.08 a share in the quarter, up from 95 cents a share a year earlier. Shares of 3M gained 5-1/8 to 97-3/8 in trading Monday.
Dupont (DD: Research, Estimates) is also expected to post improved earnings, with analysts forecasting it made 74 cents a share in the first quarter, up from 66 cents a share a year earlier. Dupont shares gained 1-3/4 to 56 in trading Monday.
Exxon Mobil (XOM: Research, Estimates) and two other oil companies -- Texaco Inc. (TX: Research, Estimates) and Conoco Inc. (COC.A: Research, Estimates) -- are expected to report large jumps in earnings, driven by higher oil prices in the quarter.
Exxon Mobil is forecast to have made 90 cents a share, almost double the 46 cents a share it made a year earlier. Texaco earnings are forecast at 98 cents a share, up from 18 cents a share a year earlier, while Conoco is forecast to report earnings of 60 cents a share, up from 13 cents a share a year earlier.
Exxon Mobil shares gained 7/8 to 79-7/8 in trading Monday, and Texaco rose 7/8 to 51-11/16. But Conoco shares slipped 1/16 to 23-1/16.
Telecom SBC (SBC: Research, Estimates) is having made 52 cents a share in the quarter, up from 49 cents a share a year earlier. Another regional telecom, Bell Atlantic Corp. (BEL: Research, Estimates), met earnings forecast, posting net income of 80 cents a share, up from 73 cents a share a year earlier.
While the earnings reports are import, these two "Baby Bells" could see gains from investors seeking refuge from volatile markets, said Bob Wilkes, telecommunications analyst with Brown Brother Harriman, in an interview early Tuesday on CNNfn's Ahead of the Curve program.
"In this market environment the stocks are still perceived to be somewhat defensive in nature and you'll be seeing money flowing into them for that reason," he said. (187KB WAV) (187KB AIFF)
Shares of SBC gained 1-1/16 to 42-1/4 in trading Monday, while Bell Atlantic rose 1-11/16 to 61-15/16.
Consumer products manufacturer Procter & Gamble Co. (PG: Research, Estimates) is due to report a drop in profit. The company warned on March 7 that it would see disappointing results in the quarter due partly to rising raw material costs such as oil and paper pulp, which drove forecasts for its fiscal third quarter down to 64 cents a share, compared with 72 cents a share it made in the period a year earlier.
Shares of P&G gained 1-9/16 to 70-1/2 in trading Monday.
Xerox Corp. (XRX: Research, Estimates) reported a large drop in earnings, reporting profit of 30 cents a share before special items brought it to a 38-cent a share loss. The company made 48 cents a share a year earlier. The current results still beat the 25 cents a share profit forecast by analysts.
Shares of Xerox fell 15/16 to 24-1/8 in trading Monday.
Tech companies due to report after the market close Tuesday included personal computer manufacturer Compaq Computer Corp. (CPQ: Research, Estimates), Internet auction site eBay Inc. (EBAY: Research, Estimates) and telecom equipment provider Nortel Networks Corp. (NT: Research, Estimates).
Compaq is seen having earned 16 cents a share, the same as a year earlier, while eBay is forecast to have made 3 cents a share, down from 4 cents a share. Nortel is expected to report earnings of 18 cents a share, up from 14 cents a share.
Compaq shares fell 1-3/8 to 26-1/16 in Monday's tech selloff, while eBay lost 8-3/8 to 141-7/8 and Nortel dropped 4 to 98-1/2.
Economic reports due Tuesday include March existing home sales. A survey by Briefing.com finds analysts expecting sales stayed at the same 4.75 million annual rate that was recorded in February.
The Conference Board's index of consumer confidence for April is also due. It is expected to slip to 136.0 from 136.7 in March, according to the Briefing.com survey. 
|
|
|
|
|
 |
|
