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by 2/16/2001 3:35 PM
Stocks quoted in this article:
Nortel Networks' (NT – 19.64) warning last night has spurred it to the top of the most-active list on the NYSE today. The news has had a tremendous effect on the fiber-optic sector as a whole. JDS Uniphase (JDSU – 36-5/8) is the most active issue on the Nasdaq and Corning (GLW – 32.69) is the third most active on the NYSE. All of these equities are suffering devastating losses, with each losing in the neighborhood of nine dollars per share and falling to new 52-week lows. Just yesterday the sector was reveling in positive projections from CIENA (CIEN- 84). What a difference a day makes!<
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by 2/16/2001 12:05 PM
Stocks quoted in this article:
United Parcel Service (UPS – 60.06) came forth with some encouraging fundamental news today, announcing plans to boost the dividend in its Class A and Class B shares by 12 percent. Company officials cited strong cash flow and continued earnings growth as the reasons behind this change. The shares are virtually unchanged in early-afternoon trading.

The equity has had little direction for nearly a year; since mid-March, UPS has traded sideways in a range between the 55 and 65 levels. This consolidation pattern has made moving-average trendlines fairly meaningless. On the options front, it appears as though speculators look for the stock to break free of its range … though not for a while. Open interest on UPS calls is relatively hefty at the out-of-the-money 65, 60, and 75 strikes in the July series. Also, the site of heaviest call open interest is the January 2003 70 strike, home to nearly 10,000 open call contracts. By contrast, the site of heaviest put open interest is the July 60 option, where 4,146 contracts currently reside. <
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by 2/16/2001 10:14 AM
Stocks quoted in this article:
Navistar International (NAV – 25.80) reported earnings this morning, beating Street estimates with a narrower-than-expected loss of 58 cents per share. The analysts' consensus expectation for NAV was a loss of 61 cents per share. The company cited a weakening demand for medium and heavy-duty trucks for the earnings loss.

The shares have been in a steady downward trend since slipping below their 10-day and 20-day moving averages, but are trading in the black and looking to gain some ground this morning as they climb on the positive news.
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by 2/16/2001 10:11 AM
Stocks quoted in this article:
Long-suffering online travel auctioneer priceline.com (PCLN – 2-13/16) gave the Street an unpleasant surprise last night, reporting a loss of 15 cents per share. This was eight cents wider than analysts had been expecting, and nine cents below last year's figures for the same time period. What's more, the firm reduced its prior expectations for the first half of 2001. This morning, the firm's CEO expressed disappointment over the results but also noted an increased momentum for the site's business. A Prudential analyst noted that it is too soon to tell whether or not the firm has truly turned the corner on the road to recovery.

The stock is trading off more than five percent on the heels of this fundamental news. For the past month, PCLN has been lanquishing between the two and three levels, about 98 percent from its April 1999 high of 165.

On the advertising front, PCLN recently replaced its live-action spots that had William Shatner at the helm with ones featuring Sarah Jessica Parker in a voiceover role. <
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by 2/16/2001 9:15 AM
Stocks quoted in this article:
The shares of Powerwave Technologies (PWAV - 26-5/8) have been crumbling under the weight of their 10-day and 20-day moving averages so far this year. In fact, the stock has not been able to manage a single close above either trendline since December 28. The shares are now set to gap lower by approximately four dollars amid the weakness in the broader-tech market.

It appears an institutional player exited a large position in the March 40 calls yesterday. A 3,000-contract block changed hands at ½ yesterday accounting for the majority of the action on the option. Open interest declined by approximately 2,500 contracts in response.
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