just wondering stocko, page-13

re: just wondering stocko 4 bultana U.S. stocks end nearly flat; Duke, Dell weigh
08:33, Tuesday, 14 January 2003

(Updates to close)

By Elizabeth Lazarowitz

NEW YORK, Jan 13 (Reuters) - Technology shares dipped and
blue chips ended up a touch on Monday, as investors paused for
breath after an early January stock-buying spree and braced for
a slew of key corporate earnings reports due later this week.

Stocks staged an early morning rally, but an investment
rating downgrade on Dell Computer Corp. and an
earnings warning from Duke Energy Corp. soured
investors' mood. Major market gauges whipped in and out of
positive territory for most of the day.

"There's tons and tons of cash out there looking for a
place to go, but then there are these hot spots," said Robert
Baumann, director of listed trading at investment bank Investec
Inc. "That kind of gets people thinking, 'Let me just hold off
a little bit before I start putting money back into the
market.'"

The broad Standard & Poor's 500 index <.SPX> has risen more
than 5 percent so far this year as bargain-hunting investors
snapped up beaten-down shares, hopeful of better days ahead
after three straight years of decline.

Now, investors are waiting to hear corporate America's
outlook for the quarters ahead and for a fresh batch of
economic reports, including monthly retail sales data, they
hope will yield clues to the U.S. economy's health.

"There is a little bit of apprehension about earnings out
there, and the mood of the market is 'show me,'" said Alan
Ackerman, market strategist at Fahnestock & Co. "The market
shows moments of upside, but there's no conviction."

The tech-laden Nasdaq Composite <.IXIC> ended with a loss
1.64 points, or 0.11 percent, at 1,446.08, after rising more
than 1 percent early in the session. The blue-chip Dow Jones
industrial average <.DJI> rose 1.09 points, or 0.01 percent, to
8,785.98, and the S&P 500 Index fell 1.3 points, or 0.14
percent, to 926.27.

Trading was active with about 1.4 billion shares traded on
the New York Stock Exchange and about 1.6 billion shares traded
on Nasdaq.



NORTEL SHINES, BUT DELL SAGS

One bright spot was Canada's Nortel Networks Corp.
, which jumped 17 cents, or 7 percent, to $2.52 and was
the most active issue on the NYSE. Nortel's stock touched a
fresh seven-month high as investors bet on a better 2003 for
telecom equipment suppliers.

After the resignation of Steve Case as chairman of AOL Time
Warner Inc. , AOL's stock rose 15 cents to $15.03.
Effective in May, Case's resignation completes the exodus of
the key architects of the $106.2 billion merger, which irked
investors by not delivering on its promise to supercharge
growth by marrying old and new media.

An upbeat brokerage call on Intel Corp. helped
fuel the early rally in high-tech issues, but the chip giant's
gains soon fizzled.

Intel fell 4 cents to $17.38 after earlier in the session
rising as high as $17.98. Salomon Smith Barney raised its 2003
earnings estimates for Intel, which reports fourth-quarter
earnings after Tuesday's close.

Dell Computer's downgrade also dragged on the Nasdaq. J.P.
Morgan Chase cut its rating for the computer maker to "neutral"
from "overweight" because of "an increasingly aggressive
industry pricing environment." Dell dropped $1.17, or 4
percent, to $25.98. Rival Hewlett-Packard , a Dow stock,
lost 49 cents to $20.36.

Also weighing on the market was Duke Energy, which sank
nearly 15 percent after warning that earnings for 2002 and 2003
would fall short of forecasts.

Duke Energy fell $3.13 to $17.87, and was the second-most
active issue on the New York Stock Exchange. Duke also said the
sluggish U.S. economy would prevent any near-term recovery of
the merchant energy business.

Georgia-Pacific Corp. , the world's second-largest
forest products company, warned it will post a quarterly net
loss from a $315 million asbestos charge, higher costs and
tough market conditions in its building-products and
consumer-products businesses. It fell $1.38, or almost 8
percent, to $16.58.

More bad news came from defense contractor Raytheon Co.
, which said U.S. regulators are investigating
accounting practices at its struggling commercial aircraft
unit, the third probe into Raytheon's operations in recent
years. Raytheon shares fell $1.57, or 5 percent, to $29.85.

Tenet Healthcare Corp. , the second-largest U.S.
hospital operator, facing a rash of regulatory and labor
troubles, gained after it said on Monday its quarterly profit
rose more than expected on higher patient admissions.

Tenet rose 84 cents, or 5 percent, to $17.69.

Downbeat results from the Kansas City Federal Reserve Bank's
monthly regional manufacturing index also helped dampen Wall
Street's mood as it raised fears that national activity may not
be picking up as quickly as hoped, traders said.

The Kansas City manufacturing index registered -20 for
December. Of the 96 firms surveyed, more saw production drop
from November's level than those who saw it rise.



EARNINGS ON TAP

Besides Intel, several other tech heavyweights, including
International Business Machines Corp. , report this
week. Other big companies set to hand in their scorecards
include General Motors Corp. and General Electric Co.
, two of the 30 Dow industrials.

"The focus this week will be on corporate earnings
announcements," Ken Tower, chief strategist at CyberTrader,
Inc. told clients in a note. "The economy has been mixed over
the past three months, so expect the same from earnings. For
the markets, that means volatility, particularly since trouble
in Venezuela and Iraq remain unresolved."

In other news, shares of FAO Inc. , parent of the
posh toy store FAO Schwartz, surged 34 percent, or 13 cents, to
51 cents, after it filed for bankruptcy protection on Monday in
the wake of weak sales and intense competition from
discounters.

((With additional reporting by Herb Lash))
((Reporting by Elizabeth Lazarowitz; editing by Kenneth Barry
Reuters Messaging [email protected],
646-223-6113))
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