While the Dow was already in the midst of a rally before tomorrow's Federal Reserve meeting, the Nasdaq was a little slower in moving forward.
was down 13.24, or 0.4%, at 3515.82 in recent trading after dropping as low as 3445.13.
TheStreet.com Internet Sector
index, or the DOT, was up 3.67, or 0.4%, at 847.23. The Dow was up more than 100 points.
Traders were showing some restraint in tech shares in advance of tomorrow's meeting. There remains uncertainty as to whether the Fed will hike rates. Light volume was providing some volatility.
Barry Hyman, senior market analyst with
Ehrenkrantz King Nussbaum
, was in agreement with consensus estimates looking for a 50-basis-point hike by the Fed. And like many other observers, he also is looking for a postmeeting rally, saying that strong performance by financial stocks today suggests a positive outcome after the meeting. However, Hyman does not expect a sustained rally that would take the Nasdaq back to 5000. Rather, he said he still sees the Nasdaq in a trading range between 3200 to 4100 and 4200, making it more of a "traders' market" than one for longer-term investors.
Hyman said he still sees valuation concerns among Nasdaq stocks and investors continuing to put money into value stocks. But he said the low volume that has been seen of late suggested a "slow migration away from technology, which is good and the way it should have been." Hyman, however, said there will come a point in time when the value plays become fully valued and investors will return to tech. He expects the Fed, sometime in the third quarter, to be closer to completing its tightening cycle, and the market to be through its summer doldrums period. A rally then, he added, would be more lasting.
Hyman also was not discounting a trading range below the recent low of around 3230 in the Nasdaq. He said a final washout "would be an ideal situation because I do believe growth investing is still the way to play."
Gains in the DOT were being fueled by
, which was up 5 7/8, or 11%, at 60 amid ongoing talk of an eventual buyout of the company by
Also among the day's movers,
was up 2 1/8, or 11%, to 21 7/16;
was up 2 3/165, or 6%, to 39 5/16. Among business-to-business plays,
was down 3 1/16, or 4.4%, to 66 and
was down 4 7/16, or 4.1%, to 104 1/8.