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Large cap weakness has futures lower

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While it has been many of the large caps leading the recent rebound, many are showing weakness this morning and have stock futures lower.

Shares of software giant Microsoft (NASDAQ:MSFT) $53.15 are losing $0.90 at $52.25 after Microsoft's chief executive Steve Ballmer told an Australian reporter that the software maker's first quarter sales surge was likely a one-time event that won't prove sustainable. "We're not trying to say that we think sales results of our first quarter will be sustainable. It is kind of a one-time anomaly," said Ballmer.

Other tech bellwether's have Intel (NASDAQ:INTC) edging down $0.21 at $14.25, Applied Materials (NASDAQ:AMAT) off $0.24 at $13.20, Cisco Systems (NASDAQ:CSCO) lower by $0.12 at $10.39, Dell Computer (NASDAQ:DELL) easing lower by $0.21 at $28.24 and Qualcomm (NASDAQ:QCOM) off $0.07 at $35.93.

Shares of CheckFree (NASDAQ:CKFR) $15.70 are weaker after a downgrade at Deutsche Bank. Shares of the electronic payment processor were down $2.30 to $13.40 of Instinet after Analyst Richard Zandi cut his rating to "sell" from "hold." He noted that the stock has run up recently despite continued "uncertainties and challenges" surrounding the company.

Shares of Dow Component Johnson & Johnson (NYSE:JNJ) $59.35 are edging lower at $59.00 over the New York ECNs after an arbitrator found that JNJ breached its license agreement with Amgen (NASDAQ:AMGN) $50.48 in the early 1990's for the reserved dialysis market and awarded Amgen $150 million in damages. The $150 million award was substantially less that the $1.2 billion sought by AMGN. JNJ reiterated its 2002 guidance of $2.26 excluding a charge for this damage award, which it expects to total $0.03 per share.

Shares of Amgen (NASDAQ:AMGN) are 10-cents lower from Friday's close of $50.48 in this morning's pre-market action.

S&P futures (sp02z) are off -5.2 points at 878. NASDAQ futures (nd02z) are down 11.5 points at 949 and Dow futures (dj02z) are lower by 65 points at 8,230.

Treasuries are seeing modest buying with the benchmark December 10-year Treasury futures (ty02z) trading 112'265 +0.12%, with YIELD ($TNX.X) edging lower at 4.115%.

Fair value for the S&P 500 today is $0.34. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.52 and set for program selling at $-2.32. Fair value for the NASDAQ-100 today is $2.52.

Jeff Bailey

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