Market Mixed to Higher as Traders Tread With Some Caution

Last week's feel-good economic data gave set the stage for a Wall Street pep rally that pumped the Nasdaq up almost 19% in four days. When the game began today, investors continued to implement the once-winning plays used before the correction days, rotating money out of safety zone sectors like financials and consumer staples and into tech. But many bulls remembered the agony of defeat and decided sit out and scale back on their wagers before getting roughed up again.

Major Indices INDEX CHANGE % VALUE Dow 37.25 +0.4% 10,832.01 S&P 500 5.10 -0.4% 1476.16 Nasdaq 16.49 +0.4% 3829.87 Russell 2000 0.73 +0.1% 513.76 TSC Internet 14.91 -1.6% 930.51 NOTE CHANGE PRICE YIELD 10-Year Treasury 6/32 102 20/32 6.135%

With volatility on their minds, investors were skeptical that good news from economic data could stop the Fed from taking rates higher at the next scheduled Federal Open Market Committee meeting, June 28. Although the numbers did indicating the Greenspan plan was having some effect, not everyone was confident that it was a reason to jump head-first into the market again.

"This morning's selloff was on the basis that people felt that maybe we got ahead of ourselves," said Matt Johnson, head of Nasdaq trading at Lehman Brothers, referring to last week's 19% pop in the Nasdaq Composite Index. "If anything comes out of the correction, people are remaining more disciplined about what they're buying. We're two weeks before preannouncement season and they want to make sure they know the story before going in and buying again." ...