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Stock futures point at mixed to lower open for stocks

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Stock futures are pointing to a mixed to lower open for the major market averages as S&P futures (sp02u) trade down 4.5 points at 839.50. NASDAQ futures (nd02u) are fairing better with a 0.50 gain at 967.50, while Dow futures (dj02u) are down 63 points at 7,935.00.

Fair value for the S&P 500 today is $0.90. That price will not change during the session. HL Camp & Company has their computers set for program buying at $2.20 and set for program selling at $-1.82. Fair value for the NASDAQ-100 today is $3.34.

If you would like more information on fair value and its uses, please visit www.programtrading.com.

3M beats estimates

Dow component 3M (NYSE:MMM) $108.88 looks to open higher at $110 after the company said it earned $1.36 a share in its second quarter, which was 2-cents better than consensus estimates. The company said revenues rose 2.2% year-over-year to $4.16 billion versus the $3.97 billion consensus. 3M (MMM) also gave future guidance which was higher than consensus, putting Q3 earnings per share at $1.35-$1.40 (consensus $1.33) and full year EPS at $5.15-$5.30 (consensus $5.13).

Citigroup and JP Morgan under pressure

Shares of Dow components Citigroup (NYSE:C) $36 and JP Morgan (NYSE:JPM) $26.10 will be under some selling pressure at the open after The Washington Post and Wall Street Journal parsed together company memos and sources that say JP Morgan, Citigroup and other banks transferred more than $5 billion to Enron using complex transactions that were labeled as energy trades.

WorldCom files for Chapter 11 Bankruptcy protection

Telecom giant WorldCom (NASDAQ:WCOME) $0.09 said Sunday evening that it will file for Chapter 11 Bankruptcy, marking the biggest bankruptcy ever, eclipsing Enron's recent meltdown.

WorldCom (WCOME) said in a statement it already has secured a commitment of $750 million of the $2 billion debtor-in-possession financing from Citibank, N.A., JP Morgan Chase Bank and General Electric Capital Corporation.

The credit facility will be used to supplement the company's cash flow during the Chapter 11 proceedings and is subject to approval by the bankruptcy court.

WorldCom's non-U.S. subsidiaries are not included in the filing and will also continue to operate normally, the company said.

Service to customers is expected to continue uninterrupted, at least for a time. During the process, WorldCom would have access to between $500 million and $1 billion.

WorldCom claimed about $103.8 billion in assets at the end of the first quarter. On that basis, a WorldCom filing for bankruptcy would surpass last year's $63.4 billion Enron failure.

Jeff Bailey
Senior Market Technician
Option Investor

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