The Fokker Chronicles
Later this morning the ISM Non-Manufacturing report for August is due out at 10amEDT. As if the action needs to be any thinner, the bond boys will be bailing early following a 2pm close.
All U.S. markets closed on Monday!
Tech wreck is the highlight this morning for brokerage research following Intel guidance last night. Goldman Sachs cut Intel(INTC:NASD)and Advanced Micro Devices(AMD:NYSE) '04 estimates by 10% and 26% respectively and '05 estimates 26% and 58% respectively. Intel was also cut to net neutral from net positive at Susquehanna. Prudential downgraded the Semi sector to unfavorable from favorable. Xilinx(XLNX:NASD) according to CSFB is expected to guide lower. Hewlett Packard(HPQ:NYSE) was downgraded to hold from buy at AG Edwards and Piper Jaffray lowered its estimates for Dell Computer(DELL:NASD).
In other parts of the Street, Goldman Sachs cut estimates for Continental(CAL:NYSE) in '04 by 27% due to higher airport costs and lower yield. Deutsche Bank dropped Gold Fields (GFI:NYSE) from buy to hold and lowered Harmony Gold (HMY:NYSE) from hold to sell.
Teva Pharmaceuticals (TEVA:NASD) announced a $300 mln buyback of shares and convertible securities.
Hurricane Frances has caused nearly 2.5mln Floridians to be told to leave their homes. The storm has been downgraded to a Category 3(100mph sustained winds in the most recent report of a hurricane hunter plane) as it crossed over the Bahamas. As the storm approaches U.S. landfall, uncertainty will remain of where it will strike, extent of damage, and the ranges of damage some analysts predict it will have on the bottom lines for the insurance stocks. UBS has a report that female hurricanes create more damage than male ones hence Frances should be worse than Charley was last month...as good as any research they put out these days.
Intel (INTC:NASD) reported revenue guidance that lowered guidance to a range of $8.3-$8.6 billion (mid-point of $8.45 billion, up 5.0% Q over Q), from the prior range of $8.6-$9.2.
Altera(ALTR:NASD) said it sees revs flat vs. prior +2-4% Q/Q guidance> implying $269MM vs. First Call estimates of $276.99MM.
Around the world in 80 ticks:
The Russian hostage situation has come to an end today after Russian troops stormed the school where hundreds had been held over the past few days. BBC news reports that 10 people have been killed and over 200 wounded. Some of the killed might have been a handful of the Chechen terrorists that blew themselves up while their comrades escaped. Many of the people taken hostage were both children and parents celebrating the start of the school year.
A New York City judge has ordered detained protesters released after the city failed to release nearly 500 anti-Bush protestors. The Manhattan Judge felt the city ignored his order and has fined the city $1,000 for every protester held past the 5pm deadline he had originally set. While it was unclear how many detainees were still in custody, the Judge cited 470 people who had been held over 36 hours and some as long as 66 hours.
Have a great Labor Day weekend.
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