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by 4/2/2001 10:33 AM
Stocks quoted in this article:
The National Association of Purchasing Management released figures for March, showing economic contraction for an eighth straight month. The prices-paid index fell below 50 for the first time in 22 months.

The index came in stronger than expected, however, possibly reducing chances of another rate cut before the next scheduled Fed meeting. February's index measured 41.9, while March came in at 43.1, higher than the consensus expectation of 42.3. The line of demarcation between expansion and contraction is considered to be 42.7, so the new figures looks encouraging.<
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by 4/2/2001 10:00 AM
Stocks quoted in this article:
i2 Technologies (ITWO - 17), provider of eBusiness software solutions, has warned it will not meet expected targets for this quarter, due to delays from customers. The company now expects earnings to come in at about two cents per share, compared to previous Street views of five cents.

ITWO is looking at cost reduction plans, including possible layoffs. The shares are trading up two dollars after the news, proving again that Wall Street hates the unknown more than the actual bad news.<
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by 4/2/2001 9:53 AM
Stocks quoted in this article:
Vitesse Semiconductor (VTSS 24-1/8) has agreed to purchase Danish Exbit Technology for 4.4 million shares, plus another possible 2.5 million shares to be set aside for later use. Exbit develops high speed chipsets for communication and networking uses. The deal will enable VTSS to obtain a prominent position in 10-gigabit Ethernet uses.

The acquisition is expected to be completed by the end of the second quarter, and will be slightly dilutive to VTSS earnings. Investors must be feeling good about the announcement, as it has not hurt VTSS in trading this morning, although the issue is bouncing off Friday's 18-month low.
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by 4/2/2001 9:41 AM
Stocks quoted in this article:
Du Pont (DD 41.32) reported early this morning that it would be cutting its global workforce by 4,000 jobs or four percent. The resulting restructuring charge would cut into second-quarter earnings for the company. DD now expects second-quarter earnings to come in at 40 to 45 cents per share, which is below the average Street estimate of 51 cents per share.

Investors seem to taking the news well as the stock has already gained nearly two percent in trading already this morning. The shares managed to find support at the 40 level, which is the site of peak front-month put open interest. More than 6,800 contracts reside at the 40 level. <
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by 4/2/2001 9:21 AM
Stocks quoted in this article:
Dow financial component American Express (AXP 41.30) was up on takeover rumors late last week. The company has now set forth a warning that first-quarter profits will likely be about 18 percent lower than last year's 48-cent profit for the same quarter. Analysts had expected 51 cents in earnings per share for this quarter. AXP cites deterioration in the high-yield market as one primary cause.

The company also expects lower earnings for the year as a whole, due to market conditions. It had previously forecast coming in toward the lower end of a 12-15 percent growth projection for 2001.
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