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by 1/3/2001 9:26 AM
Stocks quoted in this article:
There is both good and bad news out this morning on Intel (INTC – 31-1/16). The company is unveiling a new Celeron processor and chipset made for value-priced personal computers. This announcement comes back-to-back with yesterday's announcement of a new personal digital audio player.

On the other side of the coin, Lehman Brothers has chopped their 12-month price target for INTC from $55 to $40 per share, while also reducing 2001 earnings expectations by a dime. Unfortunately, the bad news seems to be taking precedence in investors' thoughts, as the initial reaction is a drop in share price of over one dollar per share in pre-market trading this morning.
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by 1/3/2001 9:13 AM
Stocks quoted in this article:
Shares of Texas Instruments (TXN - 46-5/16) have been trading sideways within the 35 to 53 range since early October. Options investors have been hesitant to make a commitment in one direction or the other on the shares. Schaeffer's Daily Sentiment shows that the Schaeffer's put/call open interest ratio (SOIR) has also been trending sideways since hitting a near term low (bullish investor sentiment) in September. The near-the-money January 45 put currently has 25,126 in open interest, but is exceeded in open interest by the out-of-the-money January 22-1/2 put with 37,771 open contracts.

Yesterday, 1,000 contract blocks traded in each of the February 50 call and the February 50 put. In what typifies recent options trading on TXN, this investor has not committed to a direction for the shares, but is expecting a dramatic move in either direction by February expiration. The worst case scenario for this trader would be a continued consolidation in the shares (neither a sharp upward or down ward move).

In a move that may tilt the scales today, a Morgan Stanley analyst cut the shares from an "outperform" rating to a "neutral" rating. Anticipating softness in global demand for Digital signal processing and analog technology, the analyst reduced his 2001 earnings for TXN from $1.60 per share to $1.53 per share.
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by 1/2/2001 5:12 PM
Stocks quoted in this article:
Bed Bath & Beyond (BBBY – 21-5/16) toppled over eight percent today on heavy volume. Over five-and-a-half million shares changed hands on the retailer, compared to an average daily volume of 3.47 million. This decline was spurred by news that Deutsche Banc reduced its rating on the stock to a "buy" from a "strong buy." This comes on the heels of an A.G. Edwards downgrade, which occurred just before Christmas.

On a technical front, the shares breached their 20-day moving average for the first time since mid-December. The equity is now clinging to tenuous support at its ascending 10-month moving average, which resides around the 20-3/4 level. The stock has not suffered a monthly close below this trendline since February.
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by 1/2/2001 2:37 PM
Stocks quoted in this article:
The S&P 500 Index (SPX - 1289.61) is now trading back below the 1300 century mark. This level has had some technical importance in the recent past. In late October, the SPX made a low of 1306 before rallying up to 1433 over the ensuing two weeks. In late November, the index bounced off this level and rallied up to 1390. <
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by 1/2/2001 12:24 PM
Stocks quoted in this article:
It looks as if an institutional player has entered the ADC Telecommunications (ADCT - 16-1/4) fray. Two 5,000 –contract blocks have crossed the tape on the February 17-1/2 call. These 10,000 contracts compare to current open interest of 18,175 contracts. Both trades were executed at or near the offer price, indicating that these were potentially new positions. Yet, with current open interest at such high levels, it would be prudent to wait for tomorrow's translation numbers to come out before calling the intent of the trade.

ADCT shares are trading within a critical five-point range (15-20), where support and resistance currently resemble an episode from The Twilight Zone. The stock price peaked in late July, around 49 and is currently trading below all short- and long-term 10-unit and 20-unit moving averages. <
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