Before the Bell: AT&T, Microsoft, oils, CTIC 17.06.2003 14:36 Headlines
U.S. stock futures notched up as dealers looked for some follow-through to
Monday's powerful rally in the Dow stocks. The dollar recovered some ground,
pushing the euro back to $1.18 level. US consumer prices were unchanged in May,
while the core rate, excluding the volatile food and energy costs rose 0.3 pct -
its largest gain since Aug 2002, the Labor Department said. The rise in the core
rate was a surprise. Wall Street economists had expected the overall CPI to
decline 0.1 pct and for the core rate to remain flat. Futures moved up on the
data.
Global Markets
European and U.K. stocks were higher, on U.S. gains and supportive economic
measurements as well. An uptick in the ZEW economic survey of German sentiment
in June, rising to 21.3 instead of the consensus 19 prediction, gave a jolt to
the German marketAsian stocks ended mostly higher on the overnight.
See and and
Broker action
Merrill Lynch downgraded AT&T to a sell from neutral, they confirmed. Merrill
expects AT&T revenue to decline by 7.9 percent in 2003 and by 4.8% in 2004.
Lehman Brothers turned the spotlight on Microsoft , telling clients it expected
the stock is "due for a rally" for defensive reasons. Tyco International
received a downgrade to 'hold' from 'buy' from Legg Mason. UBS Investment
Research raised the rating on Charter Communications to "neutral" from
"reduce," and lifted the price target to $3.50 from 79 cents.
Breaking News -
Manpower's third-quarter Employment Outlook Survey represents the "weakest job
outlook in 12 years," the company said early Tuesday. Results of the survey,
conducted quarterly, shows that even though the 16,000 U.S. employers surveyed
anticipate some job opportunities in the July-September period, their hiring
forecast has decreased since the second quarter survey and has dropped lower
than it was a year ago at this time.
Housing units started rose 6.1 percent to a 1.788 million-unit annualized rate
in May, according to Commerce Department figures.
Shares of Ballard Power Systems are rallying $1, or 7.1 percent, to $14.99
after the company announced the receipt of a $1.75 million fuel cell order from
a "new major automotive customer." "Our automotive business continues to grow
and we are very pleased to be adding another auto company to our customer base,"
said Ballard chief executive Dennis Campbell
Oracle said late Monday that a revised bid by PeopleSoft for J.D. Edwards is
designed to avoid a shareholder vote on the proposal. "PeopleSoft is doing
everything it can to prevent its shareholders from voting," said Oracle's CEO
Larry Ellison. "If PeopleSoft's board is so convinced that the J.D. Edwards
acquisition is a great deal, why won't it let their shareholders vote on it?"
Circuit City Stores is reporting a loss from continuing operations of $43.9
million, or 21 cents per share, for the first quarter, 3 cents narrower than the
average estimate of 21 analysts polled by Thomson First Call. The Richmond, Va.,
consumer electronics retailer attributed the drop in year-over-year sales to
significant declines in average retails due to rapid technology development in
the industry, and economic weakness, which was exacerbated by the war in Iraq.
Shares of Cell Therapeutics were down around 60 cents in London in London,
dealers said. The stock ended at $14.75 on Monday. The biotech group overnight
announced a $236 million, stock-based takeover of Italian biotech group
Novuspharma. Terms call for Novuspharma shareholders to receive 2.45 shares of
CTIC for each Novuspharma share, around 16 million CTI shares in all
Vivendi Universal eased 1.3 percent as it said its net loss has been pared to
319 million euros from 815 million in the first quarter last year, as its pro
forma operating income, excluding Veolia Environnement, and the publishing
assets it sold, increased 39 percent to 844 million euros.
Biomira shares are sinking $1.10, or 28 percent, to $2.90 in Instinet pre-open
trading after the company reported results from a Phase III trial of its vaccine
for women with breast cancer, Theratope, that did not meet the primary endpoints
of time to disease progression and overall survival.
Shares of Level 3 Communications are rallying 43 cents, or 6.5 percent, to
$7.03 in Instinet pre-open trading after the communications services company
announced an agreement to supply Cox Communications ith optical wavelength
services.
The British retail price index excluding mortgage interest payments (RPIX) fell
to 2.9 percent in May from 3 percent, an unexpected drop. The harmonized index
of consumer prices (HICP), which the government plans on adopting to track
inflation, also saw a drop, from 1.5 percent to 1.2 percent.
Before the Bell is a daily e-mailed newsletter.
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
USA: Verbraucherpreisrückgang setzt sich im Mai überraschend nicht fort 17.06.2003 14:36 Headlines
WASHINGTON (dpa-AFX) - Der Rückgang der Verbraucherpreise in den USA hat
sich im Mai überraschend nicht weiter fortgesetzt. Im Mai seien die
Verbraucherpreise zum Vormonat unverändert geblieben, teilte das
US-Arbeitsministerium am Dienstag in Washington mit. Von CBS MarketWatch
befragte Volkswirte hatten hingegen im Durchschnitt im Monatsvergleich minus 0,3
Prozent erwartet. Im April waren die Preise auf Monatsbasis um 0,1 Prozent
gesunken.(...)/FX/jha/js
Record hotel costs boost US May CPI core rate 17.06.2003 14:36 Headlines
WASHINGTON (AFX) - US consumer prices were unchanged in May, while the core
rate, excluding the volatile food and energy costs rose 0.3 pct - its largest
gain since Aug 2002, the Labor Department said.
The rise in the core rate was a surprise. Wall Street economists had expected
the overall CPI to decline 0.1 pct and for the core rate to remain flat.
The gain in the core rate was boosted by a record rise in the cost of hotel
rooms in May.
On a year-on-year basis, the CPI was up 2.1%, while the core rate was up 1.6
pct.
Despite the increase in the core rate in May, inflation is still trending lower
this year. For the first five months of 2002, the CPI is running at a 2.3%
seasonally adjusted annual rate, compared with a 3.0% rate over the same month
last year. The core rate is running at a 1.1% rate, down from a 2.1% rate in the
first five months of 2002.
Energy prices fell 3.1% in May after falling 4.6% in April. Food prices rose 0.3
% after falling 0.1 % in the previous month.
Hotel costs rose 4.1% in May, the largest increase on record. As a result,
shelter costs rose 0.6%, the largest increase since Jan 1991.
Tobacco prices fell 0.5 % in May.
Transportation costs fell 1.3% despite a 7.3% jump in intercity transportation
costs.
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
USA: Hausbaubeginne steigen im Mai überraschend kräftig um 6,1% zum Vormonat 17.06.2003 14:37 Headlines
WASHINGTON (dpa-AFX) - In den USA ist die Zahl der Hausbaubeginne im Mai
überraschend deutlich gestiegen. Die Zahl der Baubeginne sei im Mai um 6,1
Prozent zum Vormonat auf einen Wert auf das Jahr hochgerechneten Wert von 1,788
Millionen Einheiten geklettert, teilte das Handelsministerium am Dienstag in
Washington mit. Volkswirte hatten zuvor bei den Baubeginnen mit einem Wert von
1,70 Millionen Einheiten gerechnet.(...)/FX/jkr/js
U.S housing starts +6.1% led by multi-family units 17.06.2003 14:37 Headlines
WASHINGTON (AFX) - Low mortgage rates and demand for multi-family dwellings
lifted U.S. housing starts last month, the latest government figures showed
Tuesday.
Housing units started rose 6.1 percent to a 1.732 million-unit annualized rate
in May, according to Commerce Department figures. The increase was owed in large
part to a 35 percent surge in groundbreaking for apartment and condominium
buildings.
It was the biggest one-month increase for the volatile multi-family sector since
December 1998, Commerce officials confirmed.
The closely watched single-family home sector recorded a 1.5 percent increase in
construction starts in May.
By region, starts in the Northeast fell 1.3 percent as wet weather kept
construction crews away.
Starts rose 0.7 percent in the West, jumped 14 percent in Midwest and surged 7.4
percent in the South.
Building permits, a gauge of future activity, rose 3.7 percent overall last
month. Single-family permits nosed up 0.3 percent after rising 1.6 percent in
April. Multi-family construction permits shot up 18.1 percent.
Still, the level of home permits last month, 1.788 million units annualized, was
the highest since December.
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
USA: Verbraucherpreisrückgang setzt sich im Mai nicht fort --2 (Kernrate) 17.06.2003 14:39 Headlines
(Fortsetzung) - Die Kernrate (ohne Lebensmittel und Energiepreise) erhöhte
sich Mai im Monatsvergleich um 0,3 Prozent. Dies war der stärkste Anstieg seit
August 2002. Von AFX befragte Volkswirte hatten hier einen unveränderten Wert
erwartet. Einen Monat zuvor hatten sich die Preise gemessen an der Kernrate um
0,1 Prozent erhöht.(...)/FX/jha/js
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