PRE-MARKET NEWS:
Bush wins but no cigar in sight
Thursday, Dec. 14, 2000 08:30 AM EST
By Marcus Goodwin, http://marcusgoodwin.com

On Wednesday, George W. Bush spoke to the nation for the first time as president-elect, asserting that, "After a difficult election, we must put politics behind us."

The dollar was offered little support from five weeks of uncertainty over who would be the next U.S. President. And on Thursday, despite the presidential outcome, the dollar fell against all major currencies except the yen. People are questioning whether the new leadership will remain committed to a strong dollar policy, particularly at a time when U.S. growth is slowing.

Asian shares remained steady after U.S. Democrat Al Gore accepted his defeat, while the Nasdaq's fell overnight almost four percentage points.

In light of further weakening data, the yen was the big blooper setting four-month lows against the euro yet remained relatively steady against the dollar.

European stocks took a spill after the Bank of England warned that rising debt in the telecom industry might increase the risk of a financial crisis in world equity and credit markets.

As economic growth continues to trickle in the 11 nations that share the euro, the European Central Bank furthered its likelihood to leave interest rates unchanged.

Snapshot,
Costco Wholesale Corp. (NasdaqNM:COST), which operates discount warehouse stores, on Thursday reported flat first quarter net income, matching analysts' expectations as sales rose by 10 percent. Net income in the first quarter ended November 26 came in at $129.5 million, or 28 cents a diluted share, compared with $129.3 million, or 28 cents per share, in the same period a year earlier. Sales in the quarter rose 10 percent to $7.50 billion from $6.82 billion in the year-ago quarter. Net sales at stores open at least a year rose five percent, Costco said. Shares of Costco, which operates 346 stores, ended off 7/16 at $32-3/4 on Wednesday. The stock has a 52-week high of $60-1/2 and a year-low of $25-15/16.

America Online Inc. (NYSE:AOL), and Time Warner Inc. (NYSE:TWX) signed an agreement Wednesday night with federal antitrust enforcers. The agreement clears the way for approval of the companies' long-delayed $111 billion combination. Under the accord, the companies agree to open their cable systems to Internet competitors across the nation.

Chase Manhattan Corp. (NYSE:CMB) and J.P. Morgan & Co. said fourth-quarter earnings would miss analysts' estimates because of deteriorated capital markets and higher costs. The New York-based banks also said they expected to cut 5,000 jobs as a result of their merger, which will bring $3 billion in cost synergies, up sharply from a prior estimate of $1.9 billion.

Corning Inc. (NYSE:GLW), the world's largest fiber optic cable company, on Thursday said it affirmed the high-end of the range of its previously stated guidance for fourth-quarter pro-forma earnings of 26 to 28 cents a share. Pro-forma earnings exclude a $300-$500 million charge related to the acquisition of Pirelli S.p.A's optical technologies business. Optical fiber volume growth is expected to grow 30 to 35 percent in the fourth quarter, Corning said. On Wednesday, shares of Corning closed at $72-1/2 on the New York Stock Exchange, off a 52-week high of $113-1/4

Gucci Group NV (NYSE:GUC), said on Thursday it hired Giacomo Santucci from unlisted Italian sector peer Prada. Earlier on Thursday Gucci reported third-quarter net profits of $114 million, up from $96 million in the same quarter of 1999, but its forecast for 2001 diluted earnings per share of $3.40 disappointed the market. Santucci joins Gucci in January 2001 to become managing director of the core Gucci Division, and VP of the Gucci Group.

Consumer electronics retailer RadioShack Corp. (NYSE:RSH), said it named David Edmondson as president and chief operating officer.


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