The Fokker Chronicles
World markets were getting battered today on fears of higher U.S. interest rates and slower corporate profits. The DAX and IBEX were losing over 2% while the London FTSE and CAC40 were not tracking far behind as both lost nearly 2% ahead of the U.S. equity open. Shareholders in Japan are wishing the markets stayed on their extended vacation from last week as the Japanese Nikkei lost an additional 4.84% today. According to Bloomberg newswires, NTT DoCoMo had its largest one-day haircut after the company said its operating profit could drop 25%; NTT Data shares lost 10%. The Hang Seng followed suit and closed with a 3.57% loss on the day.
After the bell, lookout for earnings from Symbol Tech(SBL:NYSE). Tomorrow reports from May Dept Stores(MAY:NYSE), Abercrombie(ANF:NYSE), Mylan Labs(MYL:NYSE), OSI Pharm(OSIP:NASD) and Cisco Systems(CSCO:NASD).
On Wednesday the economic news will pick up again as the government releases its figures on Mortgage applications, the Trade Balance, Import Prices as well as the monthly budget statement.
Prudential upgraded Lear(LEA:NYSE) to overweight from neutral-weight and raised its target to $70 from $67. PMC-Sierra(PMCS:NASD was upgraded to buy at CE Unterberg from market perform. Merrill Lynch upgraded Flowers Foods(FLO:NYSE) to buy from neutral. JP Morgan downgraded select Machinery stocks to neutral from overweight including Deere(DE:NYSE) and Navistar(NAV:NYSE).
SunTrust Robinson Humphrey downgraded Best Buy(BBY:NYSE) to neutral from buy. Deutsche Bank upgraded Powerwave(PWAV:NASD) to buy from hold. Smith Barney upped Quest Software(QSFT:NASD) while dropping Autodesk(ADSK:NASD). JP Morgan upgraded Applied Materials(AMAT:NASD) to an overweight.
The Financial Times reports that Intl bus Machines(IBM:NYSE) will announce today that it has developed a new software that will allow large organizations to bypass the Microsoft(MSFT:NASD) Windows as well as other MS-based applications.
Bloomberg newswires reported over the weekend the $7 billion merger between Suntrust(STI:NYSE) and National Commerce Financial(NVF:NYSE).
According to the Wall Street Journal, Fannie Mae(FNM:NYSE) has reached a deal with the SEC that will avoid a messy restatement by the mortgage company. However in return, Fannie will change its accounting methods. This followed the OFHEO requesting FNM to revise its accounting methodology last week and according to officials, could lead to more frequent write-downs according to officials.
Bloomberg newswires report that Citigroup(C:NYSE) reached a settlement on WorldCom class action suit for $1.64 billion.
In the latest Newsweek edition, former chairman Dick Grasso is demanding an apology from the NYSE board for "Destroying my reputation" in return for kicking back the $139.5 million he received in compensation.
Reuters points out today that if energy prices continue to rally as they have, ExxonMobile(XOM:NYSE) could dethrone General Electric(GE:NYSE) as the world's largest company.
Charter Comm(CHTR:NASD) missed by a horrid 98 cents.
Cablevision(CVC:NYSE) missed by a penny.
Bally Fitness(BFT:NYSE) missed by $0.31.
Around the world in 80 ticks:
Reuters reports that the US Embassy in Tokyo has received an e-mail today that threatened a bomb attack this week. Officials have warned any US citizens in Japan to be on alert.
Reuters reports that a reward led to the arrest of quiet German teen over the weekend for creating the annoying Sasser virus. According to Police, the "computer freak" labeled by friends was egged on to create a virus which inevitably wreaked havoc around the world.
Expect some sober gold medal ceremonies in this upcoming Athens games according to U.S. Olympic officials. While most athletes from around the world in this upcoming Olympics will have the opportunity to enjoy the fruits of their respective successes, Reuters has reported that U.S. athletes will not; at least not in public. US Olympic officials have reportedly instructed its athletes to tone down its celebratory reactions for fear of inciting further anti-American feelings.
Have a great day!
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