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Equity futures lower and bonds are mixed

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Equity futures are once again fractionally lower and we're seeing S&P futures trade down 2 points, NASDAQ futures are off 25 and Dow futures are lower by 7. Fair value for today is $8.02 with buying set at $9.68 and selling set at $6.16. The bond market has just opened at 08:20 EST and we're seeing some buying in the 10 (TNX.X) and 30-year (TYX.X) bonds as yields drop to 5.286% and 5.290% respectively. The 5-year (FVX.X) is seeing some selling and yield is rising to 4.948%. I'll recap the bonds just before 09:00 EST at the bottom of this update.

Nokia Warns on previous forecast

Mobil phone maker Nokia (NYSE:NOK) warned analysts that it won't meet the company's own performance targets for the first quarter of 2001. The Finnish company, which is the world's biggest mobile phone maker, said first quarter 2001 growth would be weaker than the level anticipated for the first half of the year, global mobile handset market growth would slow and margins were being squeezed.

Nokia Cp Ads (NOK) Chart - last five months.

This morning's warning from NOK should have mobile handset stocks receiving bearish votes from voters and we'll also be watching some of the chip stocks that provide chips sets to the mobile phone makers.

Proctor & Gamble meets expectations, firms future guidance

Proctor & Gamble (NYSE:PG) reported fiscal second-quarter earnings of 93 cents per share, exceeding the average estimate compile by Multex of 92 cents per share. The consumer product giant said "unfavorable" currency translation cut quarterly revenue by 4%. The company also said it expects third-quarter EPS of 72 to 74 cents, in line with the 73-cent analyst estimate.

Bonds show little change since open

Bonds are showing little change since their opening at 08:20 EST and we're still seeing the 10 and 30-year yields trade fractionally lower (fractionally higher in price) and the 5-year note has slipped slightly and yield is now unchanged at 4.933%. Currently I'd be looking for a mixed opening. Traders that are bullish in technically strong stocks should be OK at the open.

Jeff Bailey
Staff Analyst

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