Nasdaq Pegs 2000 Again

Overseas markets finished higher, with London's FTSE 100 up 0.3% to 4458 and Germany's Xetra DAX higher by 1.3% to 3953. In Asia, Japan's Nikkei closed up 0.8% to 10,501, while Hong Kong's Hang Seng added 0.1% to 12,464.

Currencies continued to be a major financial story Monday. The dollar hit another record low against the euro. One euro was recently buying $1.2484 compared with $1.2429 Friday, earlier breaching the $1.25 level for the first time ever. Elsewhere, one dollar was recently fetching 106.12 yen, compared with 107.43 in New York late Friday. The yen's strength was being attributed to comments from a Japanese finance official who said bad loans at the nation's banks were being reduced faster than it expected.

The 10-year Treasury bond fell 23/32, its yield rising to 4.24%. Bond volumes are likely to be extremely light this week, with few market-moving economic releases and limited trading hours. The market closes at 2 p.m. EST on Wednesday and Friday, and is closed entirely on Thursday.

Movers

Despite mad cow fears, McDonald's(MCD Quote) was up 51 cents, or 2.1%, to $24.60, after its shares were upgraded to overweight from underweight by J.P. Morgan. The brokerage believes there won't be much consumer reaction to the mad cow scare and says the fast-food chain could benefit from lower beef prices.

Additionally, Wendy's (WEN Quote) said "there has been no impact on Wendy's recent sales trend over the past three days (Friday through Sunday)." The company's shares advanced 56 cents, or 1.5%, to $38.55.

Smith Barney boosted its forecast for the worldwide chip industry in 2004. The firm now says it expects 20% growth, up from 14% growth. The broker says rising demand, higher prices and inventory restocking will support the industry next year. The firm continues to favor Intel (INTC Quote), Cypress Semiconductor (CY Quote) and Fairchild Semiconductor (FCS Quote). Shares of Intel advanced 79 cents, or 2.5%, to $32.15.