Monday Morning Pressure
"The only limit to our realization of tomorrow will be our doubts of today." - Franklin D. Roosevelt
Morning News of Note:
- VZ DELL: Dell Will Install Verizon Wireless Web In Certain Laptops Verizon Wireless and Dell Inc. are expected to announce today a deal to put cellular technology that allows high-speed Internet access directly inside some of Dell's notebook computers, in an attempt to bring the service to the mass market. Verizon Wireless offers the service, called BroadbandAccess, in about half of the U.S. It allows customers to get on to the Internet wirelessly at speeds comparable with wired digital subscriber lines in most places in those markets where they can find a Verizon Wireless signal -- such as when riding in a car or train or sitting in a hotel room. (Full Story) WSJ
- EMR: The Body Electric AFTER 43 CONSECUTIVE YEARS of earnings gains, Emerson Electric (ticker: EMR) hit a giant pothole in 2001, an indirect victim of the dot-com bubble's bursting. As its customers in the telecommunications and computer industries fell on hard times, the St. Louis-based industrial-equipment manufacturer struggled to make its numbers, as well. To chief executive David N. Farr, barely a year in the job, fell the unenviable task of telling Wall Street that no corks would pop in year 44, and that fiscal '01 earnings, including some ugly charges, would fall to $2.40 a share from the prior year's $3.30. (Full Story) BARRONS
- Energy: OPEC President said members accepting plan to offer total capctiy; would increase output 2m bbl/day; said group plans to increase investments in oil refineries to help meet demand; Kuwait said they are in talks w/ US govt to build an oil refinery in US; Qatar anncd plans to triple its refinery capcity by 2010; Saudi officials said they may build second domestci refinery to serve export mkts and double size of refining venture in Port Author, TX
- WMT: Wal-Mart Stores-WMT sees September SSS up 2%-4%
Market Comments: The market opened lower this morning, pressured by a rise in oil back to $65. Market sentiment is also likely cautious ahead of the FOMC meeting tomorrow, where it looks like the Fed will raise rates another 25 basis points.
Energy stocks are extremely strong this morning, with lots of breakouts to new highs. Hard to argue with the strength in that group. Chip stocks and financials are under the most pressure so far today.
long EMR, WMT