Weekly Wrap

Well hello all! Its been awhile since I've done a market wrap. If I sound a wee bit hurried or a tad rushed, its because I AM! And if you're a good Chick worth her salt, you are too! Heck, I may just be writing this for my health as I'm not too sure how many chickeeta's have time to stock watch between gift buying and mistletoe hanging! At any rate, I am woman and I am about to ROAR out a Market Wrap! No worries; I'll be brief. (By the way, our beloved Head Hen is busy carrying boxes into her new castle... or, at least, she's supervising her four precious kids doing it, so we'll let her have the week off!)

Let's get started. The most important news of the week was probably the rate cut enacted by the Fed. The week began with the usual hubbub questioning whether or not Mr. Greenspan and his cronies would actually lower the interest rate for the 11th time this year. As was highly anticipated, they did. The reduction was a quarter of a percentage point. They even went so far as to say they're prepared to cut more to ensure pulling the U.S. out of a recession. So glad to hear they're on the case. Recessions really are a downer at investment club meetings!

On a positive note, the Federal Reserve gang did give very slight hints that the economy is recovering and, by all accounts, is nowhere near as grim as first predicted post September 11th. Some individual companies may beg to differ, however. For example, Chick holding Oracle, saw its fiscal second quarter profit slide 12% in its toughest period in a decade, says CEO Larry Ellison. They did, however, meet their previously lowered estimates. In the conference call, the company cited an encouraging outlook, hoping for a big turnaround when the economy starts to improve.

Companies announcing profit warnings this week, included Ciena, Merck and the already beleaguered Lucent Technologies. (Did someone put lead in their underpants because they just keep falling?!). Many companies announced huge cuts in their workforce due to lowered growth estimates and softening demand. Seems like we've been singing this tune for quite some time, doesn't it? Qwest Communications will cut 7,000 jobs or 11% of its workforce; they've already cut 4,000 jobs previously. Applied Materials announced 1700 job cuts and health-care provider, Aetna, will be cutting 6,000 jobs which is 16% of its workforce.

Okay, looking for a little good news? Chick holding Nokia seems to be our shining star this week. The company bullishly announced that they may actually beat (yes, you read that right, beat) fourth quarter earnings estimates. Cutting 7% of their workforce earlier this year has helped them to cut costs and sales are expected to rise 20% from the previous quarter. Shareholders can thank me, as I did just purchase my husband a Nokia for his birthday three weeks ago.

Biotechnology company, Amgen, also seems to be making positive strides. Although currently not a stock in our nest, its one that's owned by this Chick and a few others. It seems they've made a $17 billion dollar offer to acquire drug maker, Immunex. If completed, the deal would not only put some of the most promising biotechnology drugs under one roof, but would also combine Amgen's strong manufacturing capabilities with Immunex's scientific expertise in the growing field of anti-inflammatory drugs. Hmmm, we'll have to keep an eye on that one.

Well gals, in addition to Christmas, I also have my daughter's 3rd birthday party looming ahead, so I better run and figure out what I'm going to do with my little Barbie Princess and her court. Yes, retail sales were down for November (as well as advertising spending), but armed with my Visa card I'm set to single-handedly turn that around in these next few weeks!

Happy holidays to all you Chick devotees and may 2002 bring an upward spiraling Dow Jones and a downward spiraling bathroom scale!

Peace & Love,

Chick Cheryl