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by 10/18/2000 3:29 PM
Stocks quoted in this article:
Late Tuesday, PeopleSoft (PSFT 41-3/4) revealed third-quarter earnings of eight cents per share, which exceeded Street predictions by a penny per share. In reaction to this positive earnings surprise, the firm has been upgraded today by two different brokerage houses, moving from "hold" to "buy" and from "market perform" to "market outperform.

The security is up nine points, or more than 27 percent, in late-afternoon trading. Since its September 26 intraday bottom, PSFT has advanced by greater than 64 percent, using cohesive support from its uptrending 10-day moving average. Today's upward momentum has propelled the shares to their top intraday level since late July 1998.

On the options front today, 2,127 and 2,391 contracts have traded on the October 32-1/2 and 40 calls, which has open interest of 6,501 and 3,344 contracts, respectively. What's more, the in-the-money November 40 call has seen volume of 1,087 contracts on open interest of 543 contracts.

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by 10/18/2000 2:43 PM
Stocks quoted in this article:
The GSTI Multimedia Networking Index (GIP 562.4) has fizzled by more than 13 points, or over two percent. The GIP has dipped back below its descending 10-day moving average with today's weakness. Since its near-term intraday high on September 1, the index has stepped back by nearly 22 percent, encountering stingy overhead resistance from both its 10-day and 20-day trendlines. The GIP also has been turned lower this month by its newly descending 10-month moving average.

Leading index laggards this afternoon are ADC Telecommunications (ADCT 22-9/16), down 15.6 percent; Redback Networks (RBAK 124-3/8), down eight percent; Phone.com (PHCM 86-7/8), down 7.7 percent; Scientific-Atlanta (SFA 49-7/16), down 6.7 percent; and Avanex (AVNX 98-1/4), down six percent.

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by 10/18/2000 10:38 AM
Stocks quoted in this article:
The PHLX Forest and Paper Products Index (FPP 241.69) is serving as a safe haven amid this morning's broad-market bloodbath, rising nearly three points. The FPP attained low levels not seen since mid-October 1998 earlier today before rebounding. The index, though, remains beneath all of its significant moving averages.

Top FPP performers today include Boise Cascade (BCC 23-1/4), up 4.7 percent; Willamette Industries (WLL 27-3/8), up 4.7 percent; Temple-Inland (TIN 36-1/16), up 3.2 percent; Weyerhaeuser (WY 37-13/16), up three percent; and Mead (MEA 22-1/2), up 2.5 percent. This morning, MEA reported third-quarter earnings of 61 cents per share, besting brokers' forecasts by four cents per share.


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by 10/18/2000 10:36 AM
Stocks quoted in this article:
This morning, Avon Products (AVP 42-13/16) posted third-quarter earnings of 39 cents per share, which was a penny per share ahead of Street projections. According to I/B/E/S International, this marked the firm's fifth consecutive positive earnings surprise. The company's chief financial officer said that AVP's fourth-quarter net income expectation of 66 cents per share may be too higher by one or two cents per share.

The security gapped fractionally higher at today's open and reached as high as 45-5/16 before falling into the red in reaction to the CFO's comments. The shares are now lower by just over one point, or more than two percent, to slip back below their 10-day moving average, a trendline that the equity hasn't closed a session beneath since September 27. AVP, though, has obtained reliable support throughout this month from its 20-month moving average.

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by 10/18/2000 10:25 AM
Stocks quoted in this article:
Ericsson Telephone (ERICY 13-7/16) manufactures a variety of equipment for the telecommunications and networking industries, including mobile phones and modem apparatus. Yesterday morning, the company announced that it expects to post a 21-percent rise in profits for the third quarter. However, it was also noted that ERICY's mobile phone unit could see widened losses.

This news spurred a rash of options buying, most notably at the January 13-3/4 strike. Nearly 8,000 contracts traded on the January 13-3/4 put, while 6,000 contracts crossed the tape on the correlating call. Large block trades crossed the tape on both strikes shortly after 2:30 p.m. The blocks were not indicated as spreads but are almost certainly related given the similarity in volume and time. Nearly all of yesterday's volume translated into new open interest today.

In early morning trading, ERICY has sunk along with the rest of the market, sloughing off over five percent and enduring a bear gap at the open. The shares are now trading below all of their significant moving averages, including their 20-month trendline.
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