This column outlined some of the fundamental reasons why the market might rally today even if the employment report was strong
yesterday. That's pretty much the scenario that played out, though it may be difficult for the market to build on today's gains.
TheStreet.com Internet Sector
index closed up 8.19, or 0.9%, at 897.76, trading within an extremely tight range of 886.84 and 906.97. The
finished up 96.58, or 2.6%, at 3816.82. Gains came despite the above-mentioned strong employment
report, which didn't really tell the market or Fed watchers anything they didn't already know. And while some prognosticators were claiming that today's report sealed an increase of 50 basis points from the Federal Reserve when it meets later this month, that too was what the market had gone a ways toward pricing in over the past couple of weeks.
Bottom line, the market can have days like today, and even be able to build on today's gains early next week. But with the Fed meeting on May 16, and the
Consumer Price Index
being reported on the same day, the market appears set for more back-and-forth trade as has been the status quo of late.
Among stocks in the news,
, which earlier this
week reiterated that it was actively seeking a partner, got one today when Mexican billionaire Carlos Slim Helu said he had
bought a 9.2% stake in the online music company for $52.8 million.
Elsewhere, e-tailers had a mixed day after
initiated coverage of five e-tailers.
, which got a less-than-favorable neutral rating, closed down 3/16, or 2.7%, at 6 13/16;
, which was rated a buy and was probably the most highly spoken of the bunch, closed up 3 7/16, or 6%, at 58 1/2.
, which also was rated a buy, closed up 2 15/16, or 2%, at 135. And both
were rated outperform. priceline finished down 1/2, or 0.9%, at 57 7/16, while drugstore.com ended up 1 1/16, or 12%, at 9 11/16.
Among the day's other big movers,
closed up 3 7/16, or 9%, at 40 9/16 and
added 6 13/16, or 14%, to 55 3/8.