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Stock futures edge lower

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The month of April looks to be getting off to a slow start for the bulls as stock futures edge lower this morning. S&P futures currently trade down 6.7 points at 1,142.50, while NASDAQ futures trade lower by 15.50 points at 1,444. Dow futures are off 22 points at 10,352.

Among this morning's most actively traded are shares of Adelphia Communications (NASDAQ:ADLAC) at $13.90, down $1.00 (-6.7%) from Thursday's close, after the company requested an extension in filing its Annual Report on Form 10-K with the SEC to allow the company and its outside auditors additional time to review certain accounting matters relating to co-borrowing credit facilities. ADLAC also said it is conducting a review aimed at providing additional clarification of certain of the company's co-borrowing credit facilities and related matters.

Also active in pre-market trading are shares of graphics chip maker NVIDIA (NASDAQ:NVDA) at the $42.30 level, down about -4.6% from Thursday's close, after a weekend article in Barron's suggesting the NVIDIA'S growth will slow as Intel (NASDAQ:INTC) introduces new graphics chipsets next month.

Sun Microsystems (NASDAQ:SUNW) have been actively traded this morning and current trade down 7-cents from Thursday's close at $8.75. Merrill Lynch says channel checks reveal that Sun Microsystems (SUNW) should be able to meet March quarter revenue guidance of flat to up slightly; saying demand only picked up in the last week and a half as customers are waiting later in the quarter to make purchases, causing the quarters to become even more back-end loaded than usual. Merrill saying Sun will be clearing out its pipeline to make the quarter, but the "pull forward" of orders is not significant enough to put the June quarter at risk.

Shares of Ford Motor (NYSE:F) $16.49 are being downgraded to "sell" from "hold" at Prudential. Pru cuts 2002-2003 estimates and lowers price target to $12. from $16. Pru sees management confirmation of higher costs on the F-Series as a major concern, sees limited scope for cost reduction on major truck lines and sees further market share pressure due to "choppy cadence" of new models. Pru lowers earnings estimates for 2002 to $0.18 from $0.43 and 2003 to $0.87 from $1.00.

Fair value for the S&P 500 today is $2.05. HL Camp & Company has their computers set for program buying at $3.15 and set for selling at $0.65.

Jeff Bailey
Senior Market Technician
Option Investor

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