Yesterday's moribund "action" steeped into Tues' trading - then at 2PM
things sold off.  It was grim unless you were an oil/ oil service or a
biotech.  Starting at 2PM the Nasdaq lost 128 points to close down 65, the
Dow Industrials lost 45 points to close off nearly 80.  On the bright side -
in the oils and drillers -  TX & HAL up over 6%, SLB & XOM up over 3%, BHI
up over 5%/  In the utilities - ENE up over 5 1/2%, PCG and REI up over 3%,
DUK up over 2% and the drugs AHP up 3 1/2%, PFE and BMY up over 1 1/2% -
lots of talk about MYGN finding a gene for prostate cancer - up over 20%....
then there was the rest of the market  - the financials - AXP, LEH, CMB, BAC
all down over 3%.... Then there was tech - some of the laggards of late
showed some strength - QCOM up 2% and MSFT and DELL* up over 4%.... however
SUNW, AMAT, MU, TXN, EMC all down over 4%, CSCO down 3%, YHOO down 1 1/2%...
no it wasn't pretty.  In the CEUT Universe - ITWO* down over 7, MANU* down
over 1 1/16... BWAY* up up over 3, USIX* down over 2.... AMZN* and EBAY*
down over 3, CTAC* up over 2 1/2 (almost 10% - technical breakout).... AMCC*
down over 15 (questions about a shortfall on an order), PMCS* down over 7,
SSTI* down over 4, ZRAN* down over 1 1/2... LU* down over 1 3/4, JDSU* down
over 2... DELL* up over 1 1/2, CPQ* up small (boxmakers were generally up),
ANCR* down over 2 1/2, BRCD* up over 1 3/8... PROX* down over 5 1/2, RIMM up
over 1 1/4 and IIIM* up 1 to almost 15 (once again this stock was under 7
recently).... MERQ* down over 7, MUSE* and NTIQ* up over 3, VRTS down 8...
DISH* down over 4, GILTF* down over 3, GMH* up over 2 (announced 3 for 1
split after close), SPOT* down over 3 3/4, PGTV+ down over 11% (guess that
GMH talk wasn't true)..... In IPOland - Founders Food and Firkins (GCFB) -
owns Granite City Food and Brewery  PPI # Friday will set the tone - till
then we might be treading water.

GE and CSCO - forming new co. to improve manufacturing via tech.

Alcatel - 3 seperate lawsuits - patent and copyright issues - vs. CSCO.

INTC's Andy Grove - breaks from industry view - wants net transactions to be
taxed.

Warner - settling problems with MP3.com.

AOL/TWX - submitting "remedies" to European Comm.  to get okay on merger.

Nortel co-market deal with Juniper

QCOM - new game-plan for China - build out local areas and get everyone on
CDMA.

Chello Broadband - parent still involved in deal-making - will probably
delay IPO.

WCOM - $3.5 million "slamming" fine - changing people's long distance
without their knowledge.

James Cramer - files counter-suit vs. Fox.

T - raising long dist. rates for basic customers.

Amadeus joining BroadVision - creating online travel site.

SupplyForce.com - $52 million 2nd round b to b.

GMH* - 3 for 1

New Virus - attacks text based phones and pagers.

WR Hambrecht - raises $83 million - American Express, Scudder, JF Shea Co.
and others.

Astral Point Comm. - optical net co. - gets $40 million.

American Broadband - regional broadband network - raising $200 million.

EOnline.com - ASP - gets $60 million led by Morgan Stanley Dean Witter.

JBL - over $500 million spot secondary by Thomas Weisel Partners.

NY Times - HON going to net - lots of work but lots of reward.

NY Times - special e-commerce section.

AtHome cooperate with Cox - interactive TV in San Diego.

Beenz.com - $52 million for domestic and overseas expansion.

TFSM - iPromotions acquisition - watch out DCLK.

MSFT - $15 million in OnSite access - commercial broadband Infrast.

Congress - "no tax" net bill has provision to let FCC regulate net long dist
calls.

eParties - event planning co. backed by eCompanies - merging not going
under.

EBAY* - FBI looking at bidding schemes.

LEH - buys big stake in Turkish ISP.

JP Morgan - fined $200,000 for not representing Nasdaq orders.

FXall.com - 7 big banks in International currency trading consortium.

WSJ Heard - MSFT - restrictions scare investors more than break-up.

WSJ Heard in Europe - Freeserve - what price? T-Online balking?

Palm - buys Actual Software - email provider.

Safeway - exclusive with groceryworks.com

Playboy Ent. - bachelor party site featured on theknot.com (major wedding
site).

Asahi Glassx, Mitubishi and Net One Systems - marketing faster optical fiber
- threat to GLW?

C.E. Unterberg Towbin: Catherine Moore marketing in Denver/ Jim Poyner
marketing in NY/ Karl Motey marketing in NY/ In house Sat. Seminar.

There it talk: Delta and American Airlines?/ DT for Q?/RD for TX?/ CSCO for
FNSR?/

The information contained herein is obtained from sources we believe to be
reliable but its accuracy and completeness, and that of the opinions based
thereon, are not guaranteed. C.E. Unterberg Towbin, or one or more of its
partners, may have a position in any of the securities discussed herein. All
rights reserved by C.E. Unterberg Towbin. May not be reproduced in whole or
in part without prior written authorization. This report is not an offer to
sell or solicitation of an offer to buy the securities mentioned herein.
*C.E. Unterberg Towbin makes a market in this security and/or has analyst
coverage.
+C.E. Unterberg Towbin makes a market in this security and has been involved
in a recent financing.
_____________________________
Bram Towbin
C.E. Unterberg Towbin
10 East 50th Street
New York NY 10022

Telephone: 212 572 8163
Fax: 212 759 4032
Btowbin@unterberg.com




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