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Stock futures show fractional losses

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Stock futures are showing fractional losses this morning as S&P futures dip lower by 1.2 points, NASDAQ futures are down 2.5 points and Dow futures are lower by 18 points. Fair value for the S&P 500 today is $2.65. HL Camp & Company has their computers set for program buying at $4.12 and set for program selling at $1.38. Fair value for the NASDAQ-100 today is $5.75.

Prudential downgrades Caterpillar

Dow component and heavy equipment manufacturer Caterpillar (NYSE:CAT) is being downgraded this morning at Prudential. The firm is lowering CAT to "hold" from "buy" and cutting its bullish target to $54 from $60, citing competitive actions that could deteriorate earnings power. Prudential also says they believe CAT is at risk of some EPA fines on truck engines sold after October 2002.

Motorola reports sales/earnings

Late yesterday, Motorola (NYSE:MOT) reported sales of $7.4 billion in its third quarter, marking a decrease of 22% from the $9.5 billion in the year-ago period. Including pro-forma adjustments, the company incurred a loss of $153 million, or -7 cents a share, compared with earnings of $643 million, or 28 cents per share a year ago. President and COO Robert Growney did say that Motorola's handset business did return to profitability in the latest quarter and reported higher market share compared to last year. Yesterday, shares of MOT finished the trading session at $16.72.

Goldman Sachs trims estimates on IBM

Goldman Sachs is trimming it 4th quarter earnings estimates for Dow component International Business Machines (NYSE:IBM) to $1.25 from $1.40 and calendar year 2002 estimates to $4.55 from $5.05 based on prospects for continued slowing in IT spending. Goldman maintained it "recommended list" on IBM as the firm believes IBM provides some defensive characteristics for now and greater opportunity for growth in a recovering economy.

Jeff Bailey
Senior Market Technician
Option Investor

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