Subject: [NEXTEL-1] DJ. WSJ(11/27)Nextel Communications (Nasdaq) dropping 8%, or 1.10, to 12.75

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Date: Wed, 27 Nov 2002 23:32:21 -0500

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DJ. WSJ(11/27) Abreast Of The Mkt: UnitedHealth Boosts HMOs Tues

Nov 27, 2002 (ODJ Select via COMTEX) -- By Karen Talley Dow Jones Newswires NEW YORK -- Stocks fell as the prospect of improving profits, which has been driving the rally, was confronted by some reality after two reports suggested the economic recovery still has a way to go.

Source:

FWN Financial News

Date:

11/26/2002 20:15

Price:

Free

Document Size:

Short (1 or 2 pages)

Document ID:

FG20021126070000047

Subject(s):

Fws; Biotechnology; Bond; Cancer; Communications; Copper; Debt; Dow Jones; Dow Jones Industrial Average; Drugs; Earnings; Gold; Health; Healthcare; Hmo; Index; Market; Marketing; Metals; Mining; Money; Nasdaq; New York; Pharmaceuticals; Profit; Research; Revenue; Sales; Semiconductors; Technology; Wireless

DJ. WSJ(11/27) Abreast Of The Mkt: UnitedHealth Boosts HMOs Tues

Story Filed: Tuesday, November 26, 2002 8:15 PM EST

Nov 27, 2002 (ODJ Select via COMTEX) -- By Karen Talley Dow Jones Newswires

NEW YORK -- Stocks fell as the prospect of improving profits, which has been
driving the rally, was confronted by some reality after two reports suggested
the economic recovery still has a way to go.

Combine the soft economic data with a hot market ahead of a holiday, and
investors decided to take some money off the table.

The declines weren't steep, given the advances stocks have been making, but the
selling was broad. Boeing, up 18 cents to 33.67, was the only advancer among the
30-member Dow Jones Industrial Average, which fell 172.98 points, or 2%, to
8676.42, closing near its session low. The Nasdaq Composite Index retreated by
37.47, or 2.5%, to 1444.43 and the Standard & Poor's 500 Index shed 19.57, or
2.1%, to 913.31.

"There were no real earnings to speak of and some soft economic data, so we saw
portfolio managers say, `You know what, let's pull back here until things settle
down a bit,' " said Matt Ruane, head of listed trading at Gerard Klauer
Mattison. "But I wouldn't read too much into this, because we've had a good run,
and today served as a profit opportunity, but not a big one. I didn't get the
sense that these investors won't be back."

The best performers were Monday's worst: health-maintenance organizations that
were decimated after SG Cowen downgraded the group, saying profit growth will be
harder to come by next year. But UnitedHealth Group helped rebut the report,
saying yesterday that 2003 earnings will be at least $5.05 a share on revenue of
$29 billion, where analysts expected $5.04 a share. UnitedHealth gained 3.5%, or
2.65, to 79.10, Tenet Healthcare rose 5.9%, or 98 cents, to 17.50 and First
Health Group (Nasdaq) moved up 6.3%, or 1.34, to 22.67.

Investors went with the tangible in the form of metals and mining stocks, with
Freeport-McMoRan Copper & Gold adding 1.2%, or 18 cents, to 14.78, the American
depositary receipts of Anglogold gaining 1%, or 25 cents, to 26.62 and Pechiney
rising 2.6%, or 44 cents, to 17.19.

But drug stocks and biotech were weak after downbeat comments from brokerage
houses. Eli Lilly fell 6%, or 4.06, to 64 after Friedman Billings Ramsey cut
shares to market perform from outperform because of valuation and concerns about
"significant" rises in selling and marketing costs.

Biogen (Nasdaq) dropped 7.3%, or 3.38, to 42.85 after Merrill Lynch downgraded
shares to sell from neutral, citing likely downside to 2003 earnings estimates,
given increasing operating expenses and risk associated with sales of multiple
sclerosis drug Avonex.

Idec Pharmaceuticals (Nasdaq) shed 9.4%, or 3.40, to 32.80 after Merrill reduced
shares to neutral from buy citing short-term concerns about sales of two of the
company's drugs that treat non-Hodgkins lymphoma.

El Paso was the most-active stock on the New York Stock Exchange, with 35
million shares traded. It plummeted 19%, or 2.05, to 8.63 after the energy
producer's debt rating was reduced to junk status by Moody's Investors Service,
which cited weak cash flows, high debt levels and a likelihood that capital
expenditures will continue to exceed cash flow from operations. El Paso issued a
rebuttal, saying it has sufficient assets and cash to continue operating and
that Moody's is "largely ignoring" progress the company has made.

Cablevision Systems fell 7.5%, or 1.33, to 16.40 after a regulatory filing
showed a charitable trust of Chairman Charles Dolan filed to sell 1.75 million
shares, a sale that had been planned for some time.

Dow member 3M shed 2.5%, or 3.25, to 125.40 after Merrill Lynch said the
company's favorable growth prospects are fully reflected in its stock's present
value.

J.P. Morgan resumed coverage of the communications-equipment group whose analyst
left Friday. The new analyst, Ehud Gelblum, made two shifts to the lineup,
cutting both Ciena (Nasdaq) and Lucent Technologies to underweight from neutral.
Ciena fell 2.7%, or 16 cents, to 5.82, and Lucent, after rising 22% Monday, slid
2.7%, or five cents, to 1.79.

The telecom group was weak overall after serving as one of the rally's
stalwarts, with AT&T Wireless declining 6.5%, or 50 cents, to 7.22, Nextel
Communications (Nasdaq) dropping 8%, or 1.10, to 12.75 and Sprint PCS shedding
5.7%, or 31 cents, to 5.15.

Mobile-phone maker Ericsson (Nasdaq) dropped 14%, or 1.51, to 9.30 after a 3.4%
drop Monday when Chief Financial Officer Sten Fornell reiterated expectations of
a 20% decline this year in industry sales of mobile-network equipment.

Semiconductors struggled despite Morgan Stanley raising its fiscal 2002 earnings
estimate for Intel to 51 cents a share from 49 cents, above the consensus view.
Intel fell 1.4%, or 28 cents, to 20.20, Cree dropped 5.4%, or 1.30, to 22.62 and
Applied Materials declined 2.8%, or 47 cents, to 16.56, all on the Nasdaq.

The American depositary receipts of Vodafone Group shed 6%, or 1.18, to 18.32
after the mobile-telecom services provider sold its third bond deal in a week.
Vodafone will use proceeds to refinance existing debt, market sources said.

Brokerage-firm stocks pulled back, with Morgan Stanley falling 4.4%, or 2.02, to
44.32 after LVMH Moet Hennessy Louis Vuitton said it is seeking $100 million in
damages from the brokerage firm for "unfair treatment" when it came to analyst
research coverage. Morgan Stanley said it "categorically denies LVMH's claim and
stands by the integrity of its research."

But Xerox continued gaining with a rise of 1.3%, or 11 cents, to 8.61. Xerox had
advanced 3.7% Monday after forecasting earnings of between 50 and 55 cents a
share for 2003, when analysts were looking for 52 cents a share.

(C) Copyright 2002 ODJ

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