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by 10/30/2000 9:19 AM
Stocks quoted in this article:
This morning, it was announced that Palm (PALM – 52-7/16) will become a component of the Nasdaq-100 Index (NDX – 3175.25) as of the beginning of trading on November 6. PALM will also be included in the Nasdaq-100 Index Tracking Stock (QQQ – 79-23/32). This provider of handheld computers will replaced Global Crossing (GBLX – 23-1/4), which is delisting from the Nasdaq Stock Market.

On Friday, the stock declined by more than two percent to notch its third straight losing session. The shares remain below their 10-day moving average, but they are still trading above their 10-week trendline. PALM, though, is slated to open this morning's activity higher by over two percent in response to today's news.

While the security has risen above peak November call open interest in the form of 19,132 contracts at the 50 strike, the 60 mark will be another key level for PALM to overcome, as it is the site of 11,114 front-month call contracts.

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by 10/27/2000 3:39 PM
Stocks quoted in this article:
To follow-up a Market Observation on Quest Diagnostics (DGX – 92-1/4), the shares have collapsed by over 10 points on no significant news. This downturn has carried the equity to its lowest intraday mark since July 11 and beneath its 20-week moving average. This intermediate-term trendline has contained all weekly closes over the past year. What's more, DGX is trading beneath the 94 level, a technically significant mark that had offered support for the stock numerous times during the previous three-and-a-half months.

The security's recent technical weakness comes in spite of the company's positive earnings surprise. On October 19, DGX posted third-quarter earnings of 60 cents per share, topping Street estimates by four cents per share. According to I/B/E/S International, it was the firm's sixth consecutive positive earnings surprise.

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by 10/27/2000 2:55 PM
Stocks quoted in this article:
Wild Oats Markets (OATS – 4-31/32) is the second-largest natural foods grocery store in the United States, operating over 110 stores in 22 states and Canada.

Today, OATS shares have been slaughtered, losing more than half of their value. Last night, the company issued third-quarter earnings of five cents per share. This missed analysts' estimates by 17 cents per share and represented a 73-percent decline from last year's earnings figures. Adding fuel to the fire, OATS officials said that going forward, the firm will engage in restructuring and training plans that will cost $14 million - $15 million in the fourth quarter. Due to these impending changes, the company now looks to earn between 50 and 55 cents per share for fiscal year 2000 and 30-to-35 cents per share for fiscal year 2001. Analysts had expected the company to earn $0.89 and $1.06 for the two years, respectively.

This morning just after the close, OATS was downgraded at three brokerage houses. The stock has reached a new all-time low of 4-7/8. <
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by 10/27/2000 2:29 PM
Stocks quoted in this article:
This afternoon, the Morgan Stanley High Tech 35 Index (MSH – 912.92) has pushed ahead by more than 21 points, or over two percent, to reclaim its 10-day moving average. The index also is still above its 10-month moving average, a long-term trendline that it last finished a month lower than in August 1998. However, the MSH has declined by greater than 19 percent since its near-term intraday high from September 1.

Top MSH performers today have been JDS Uniphase (JDSU – 82-5/16), up 10.5 percent; Tellabs (TLAB – 45-3/4), up 9.9 percent; Seagate Technology (SEG – 69-15/16), up 9.2 percent; Hewlett-Packard (HWP – 93-5/8), up 8.8 percent; and Broadcom (BRCM – 229), up 6.9 percent. After yesterday's close, JDSU posted strong first-quarter earnings, surpassing Street expectations of 16 cents per share by two cents per share.


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by 10/27/2000 12:18 PM
Stocks quoted in this article:
Exodus Communications (EXDS – 30-1/2) has subtracted more than two percent in late-morning action, as the security appears ready to log its lowest closing level since May 24. Since the shares' September 1 intraday high, they have peeled off more than 55 percent of their value under the pressure of their descending 10-day moving average. EXDS is also sitting beneath its 20-month moving average, a trendline it has yet to close a month lower than.

On the options front today, 1,333 contracts have crossed the tape on the December 37-1/2 call. This out-of-the-money option has open interest of 548 contracts, indicating that some of this morning's volume should become new positions. This is now among the most-active calls on the Pacific Exchange.

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