Dow Stages a Comeback, but Not Everyone Is Sold on It
SAN FRANCISCO -- Blue-chips and technology stocks continued to move in opposite directions today. But this time, they moved not only in opposition to each other, but against recent patterns as well.
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Beginning of the End?
In contrast to Basel's attitude, "I am encouraged by today's up move" for blue-chips, said Barry Hyman, chief market strategist at Ehrenkrantz King Nussbaum. "It's premature to say Friday is the bottom -- the recent trend has been awful Fridays and good Mondays. But I think [the correction] is pretty much over. I¿m looking for a major blue-chip bottom forming in the next two or three weeks." Pending rate hikes by the Federal Reserve will restrain blue-chip stocks but "I think enough damage has been done," Hyman said. The prospect of higher interest rates caused the blue-chip correction, while the continued higher prices in the Nasdaq "accentuated the separation by drawing money away," the analyst continued. But that relationship will "level out" because "not every stock in the S&P is worthless." Significant stock buyback announcements by major corporations in a variety of sectors signals corporate America recognizes the opportunity created by the selling, Hyman said. "Institutions see that and we get some firming in prices. Then the public will start to come back in." The price of the 30-year Treasury bond fell 17/32 to 100 26/32, its yield rising to 6.19%. Among other indices, the Dow Jones Transportation Average rose 10.52, or 0.5%, to 2361.78; the Dow Jones Utility Average gained 8.16, or 2.9%, to 288.15; and the American Stock Exchange Composite Index rose 20.84, or 2.2%, to 964.38. For coverage of today's top stocks in the news, see the Company Report, published separately.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
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| 12,890.46 | 1,351.95 | 2,927.23 | 20.47 |
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