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Stocks futures post gains

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Stock futures are higher this morning as bulls look to try and duplicates yesterday's results. S&P futures are higher by 4 points, NASDAQ futures are up 14 and Dow futures are rising by 28 points. Fair value for the S&P 500 today is $2.29. HL Camp & Company has their computers set for program buying at $3.51 and set for program selling at $0.46.

Lucent posts loss of $8.8 billion

While promising to post profits in 2002, shareholders of Lucent Technology (NYSE:LU) are looking at bottom line losses of 27 cents a share, which is slightly worse than analyst's estimates for the company to have lost 23 cents a share for the quarter ending September 23rd. On a net basis, Lucent (LU) posted a loss of $8.8 billion, or $2.59 a share, compared with a net loss of $484 million, or 14 cents a share in the year-ago quarter. Investors looking for a bright spot found Lucent's operating cash-flow improving to a $280 million loss, which improved substantially from first quarter negative cash-flow of $2.2 billion. Cash-flow improvement was helped along by a $1.2 billion sequential reduction in expenses.

Exxon Mobil reports earnings

The world's largest oils and gas company and Dow Industrials component reported earnings this morning of $3.3 billion, or $0.48 per share, which was less than estimates of analysts looking for the oil and gas giant to earn $0.50. Revenues fell to $53 billion in the 4th quarter from $58.6 billion in the 3rd quarter of 2000.

Saloman raises earnings estimates on Cisco

Salomon Smith Barney is raising earnings estimates this morning for Cisco Systems (NASDAQ:CSCO) for the networking equipment giants Oct quarter to $0.02 from breakeven and FY02 to $0.16 from $0.08. Saloman says information from Cisco's suppliers indicates that Cisco is reordering.

We liked 'em early and still like them

In late September we thought the Biotechs would be the key group to help the NASDAQ post a recovery and I like what I'm seeing from this group, especially yesterday's action. In last night's market wrap on premierinvestor.net we talked in-depth about several stocks in the group and will discuss them further in today's intra-day comments. The stock I'm focusing on at the opening of trading this morning is shares of Protein Design Labs (NASDAQ:PDLI), which finished yesterday's trading at $30.75 and is bid higher this morning at $30.94. Yesterday in the "market monitor" on OptionInvestor.com we talked bullish these shares when they hit our upside alert at 50% retracement of $30.85 (retracement from $45.46 to $16.25). Other stocks in the group that are at different stages of upward moves that has us observing a powerful "domino effect" are shares of Biomet (NASDAQ BMET) and Gilead Sciences (NASDAQ:GILD).

Jeff Bailey
Senior Market Technician
Option Investor

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