MORNING UPDATE: Man Securities Issues Alerts for DAL, DDS, TSM,
MCD, and FDX
CHICAGO, Aug. 10 /PRNewswire/ -- Man Securities issues the following Morning
Update at 8:30 AM EDT with new NewsWatch Alerts for key stocks.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020214/MANSECLOGO ) Before the open... NewsWatch Alerts for DAL, DDS, TSM, MCD, and FDX, Market
Overview, Today's Economic Calendar, and the Quote Of The Day.
QUOTE OF THE DAY "The lack of consistency in the data is one big reason why the market is
struggling." -- Andy Brooks, head of stock trading, T. Rowe Price.
NewsWatch Alerts for DAL, DDS, TSM, MCD, and FDX ...
NEWSWATCH ALERTS - News That Could Move These Stocks Delta Air Lines Inc. (NYSE:DAL)*
Reported on Monday that it has burned through $744 million in cash in the first
six months of the year and warned, again, that it could be forced into
bankruptcy without deep concessions from pilots. The airline said it needed to
get $1 billion in concessions from pilots, who have offered up to $705 million. At the current burn rate, the carrier would be left with slightly more than
$1.2 billion in unrestricted cash by the end of the year. The stock closed down
$0.28 (6.81%) at $3.83 and continued down in after hours.
Dillard's Inc. (NYSE:DDS)* Announced it had entered into a definitive agreement to sell substantially all
the assets of Dillard National Bank, its private label credit card subsidiary,
to GE Consumer Finance for approximately $1.25 billion. Following the ongoing
trend of retailers jettisoning credit card businesses to focus on core
operations. Dillard's will use the proceeds to pay down debt and repurchase
stock, gained 5.7% to close at $22.72 up $1.24.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)* Posted record-high July sales on Monday, chilling concerns of an impending
technology slump. The company declined to give a reason but said that the PC
sector was showing signs of picking up in the current quarter, and furthermore,
the market worries about increased inventory was a "big, big disconnect"
between corporate fundamentals and share prices. Shares rose 1.5% to $6.98 up
$0.10.
McDonald's Corp. (NYSE:MCD)* Reported yesterday system wide comparable store sales for July 2004 up 10.6%
over the comparable July 2003 period. In constant currencies, the increase
works out to 7.2% year-over-year. Comparable store sales in US for July
increased 7.8% on top of a 9.9% increase in July last year. In Europe,
comparable store sales for the month of July 2004 increased 2.1%, the company
revealed. The stock closed down $0.18 at $26.16.
FedEx Corp. (Federal Express) (NYSE:FDX)* Revealed Monday morning an agreement to acquire Parcel Direct for $120 million
in cash. The acquisition should not have a material effect on FDX's fiscal
2005 results. Following the acquisition, Parcel Direct would become a
subsidiary of FedEx Ground and would provide a solution to e-tail and catalog
industry customers opening up a new market segment for FDX's transport
services. The transaction is expected to close in the second fiscal quarter
and is subject to customary conditions, including Hart-Scott-Rodino clearance. Shares of FedEx edged down slightly by $0.81 to close at $77.33.
* To learn more about how to use these alerts and for our FREE report, "The 18
Warning Signs That Tell You When To Dump A Stock", go to:
http://www.investorsobserver.com/mu18n (Note: You may need to copy the link above into your browser then press the
[ENTER] key) ** For the FREE report, "The Secrets of Smart Election Year Investing -
Insights, Stocks, And Strategies." go to:
http://www.investorsobserver.com/FREEelection NOTE: All stocks and options shown are examples only. These are not
recommendations to buy or sell any security.
MARKET OVERVIEW Overseas markets are looking better this morning, as 11 of the 15 markets that
we track are currently positive. The cumulative average return on the group
stands at a plus 0.177 percent, led by the 0.41 percent advance overnight by
the Japanese Nikkei.
The big news today will come out at 2:15 p.m., as the Fed will announce what it
intends to do with interest rates. The odds are in favor of a 25 basis point
hike, but what is going to be even more important is the clues the Fed gives
concerning rates for the remainder of the year. Then right after the bell,
Cisco Systems is set to release fourth-quarter earnings. Expectations are
running very high for a solid quarter and should the earnings disappoint in any
way, the shares are ripe for a fall.
Be prepared for the investing week ahead with Bernie Schaeffer's FREE Monday
Morning Outlook. For more details and to sign up, go to:
http://www.investorsobserver.com/freemo DYNAMIC MARKET OPPORTUNITIES With an anemic July job report capping a week of soaring oil prices, last week
belonged to the bears, who inflicted a severe mauling on the markets and
leaving many investors shattered. And while they stabilized Monday, the
yearlong downtrend has broken to the downside. The fact that it was broken by
a gap down last Friday looks particularly bearish. The NASDAQ is now testing
support levels from September. So expect it to move lower to 1,750. And with
the Federal Reserve's interest rate decision looming this afternoon, that
stifles the chances of an advance, despite the oversold conditions. The Fed is
in a difficult position. It was widely expected to raise rates 0.25% to 1.5%,
but thanks to the dire job report, that expectation has receded a little and
it's now a toss-up. However, inflation rose a third straight month in June,
resulting in a jump to 3.3% over the previous 12 months. Any move it makes has
the potential for bearish interpretation. Either way, expect revision to the
Fed's wording. After that, investors will have a clearer idea which way the
market is heading. While Richard Russell, the perma-bear of Dow theory fame,
has advised his subscribers to sell, the Red Zone investment group's Christian
DeHaemer used the current market conditions to buy Puts on Caterpillar and
Phelps Dodge. He says oil prices and rising interest rates could hurt these
stocks. At Monday's close, he was up 50% on Caterpillar and 10% on Phelps
Dodge.
The Red Zone's Christian DeHaemer has written a comprehensive free report
highlighting the remarkable scientific advances that are creating a lucrative
new industry. To read the free report, follow this link:
http://www.investorsobserver.com/agora6 TODAY'S ECONOMIC CALENDAR
7:45 a.m.: ICSC-UBS Store Sales Index (previous plus 0.2 percent)
8:00 a.m.: US Treasury Assistant Secretary Hammond speaks on financial
management credibility at conference in Bethesda, Md. 8:30 a.m.: Second quarter preliminary non-farm productivity (seen as 2.0
percent, last 3.8 percent)
8:30 a.m.: Second quarter preliminary unit labor costs (seen as 1.9
percent, last 0.8 percent)
8:40 a.m.: Treasury Assistant Secretary Abernathy speaks on protecting
the financial sector at a conference in Orlando
8:55 a.m.: Redbook retail sales for the week ended August 7 (last minus
0.1 percent)
10:00 a.m.: July Richmond Fed Mfg Index (last plus 14)
11:30 a.m.: Treasury Assistant Secretary Abernathy participates in
financial literacy roundtable in Orlando, Fla. 2:15 p.m.: FOMC decision on interest rates
6:30 p.m.: ABC/Money Magazine Consumer Confidence for the week August 7
(last minus six) Man Securities is one of the world's leading option order execution firms. Man's in-house broker team offers a level of personal service and experience
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This Morning Update was prepared with data and information provided by: InvestorsObserver.com -- Better Strategies for Making Money -> For Investors
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247profits e-Dispatch. Go to: http://www.investorsobserver.com/agora Schaeffer's Investment Research -- Sign up for your FREE e-weekly, Monday
Morning Outlook, Bernie Schaeffer's look ahead at the markets. Sign Up Now
http://www.investorsobserver.com/freemo PowerOptionsPlus -- The Best Way To Find, Compare, Analyze, and Make Money On
Options Investments. For a 14-Day FREE trial and 5 FREE bonuses go to:
http://www.poweroptionsplus.com/ All stocks and options shown are examples only. These are not recommendations
to buy or sell any security and they do not represent in any way a positive or
negative outlook for any security. Potential returns do not take into account
your trade size, brokerage commissions or taxes which will affect actual
investment returns. Stocks and options involve risk and are not suitable for
all investors and investing in options carries substantial risk. Prior to
buying or selling options, a person must receive a copy of Characteristics and
Risks of Standardized Options available from Sharon at 800-837-6212 or at
http://www.cboe.com/Resources/Intro.asp . Privacy policy available upon
request. http://www.newscom.com/cgi-bin/prnh/20020214/MANSECLOGO http://photoarchive.ap.org/ DATASOURCE: Man Securities CONTACT: Michael Lavelle of Man Securities, +1-800-837-6212 Web site: http://www.mansecurities.com/mu.html
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