Bond, Tech Sector Rallies Bolster Major Indices
All major stock market proxies remain deep in the green at midday, thanks to a rebound in the bond market and strength in the tech sector, especially
IBM
(IBM) - Get Report
.
The
Dow Jones Industrial Average
, while slightly off its best levels of the day, was lately up 93, with IBM leading the charge. Big Blue, the second most active issue on the
New York Stock Exchange
after
AOL
(AOL)
, was lately up 15, or 7%, at 240 1/2, contributing a whopping 73 points to the Dow's advance. The stock made a new high of 242 3/8 earlier.
Meanwhile, the tech-laden
Nasdaq Composite Index
was up 21, despite weakness in
Oracle
(ORCL) - Get Report
, the most active issue. (See below.)
Small-cap and Internet issues remain at or near their best levels of the day. The
Russell 2000
was lately up 3, and
TheStreet.com Internet Sector Index
was up 11.
The broader market was also solidly higher. The
S&P 500
was up 7, slightly off its highs.
In the bond market, the benchmark 30-year Treasury was hanging onto a 25/32 gain in the wake of friendlier-than-expected economic data. The
Producer Price Index
, a key inflation indicator, rose 0.5% overall and 0.1% excluding food and energy in April, vs. expectations for a slightly larger overall gain. April
retail sales
were also a bit less robust than feared, rising just 0.1% overall and 0.4% excluding autos.
Tech Focus
The major tech indices are all up strongly today. The
Morgan Stanley High Tech 35
was up 1%, the
Philadelphia Stock Exchange Semiconductor Index
was up 2% and the
Philadelphia Stock Exchange Box Maker Index
was 3% higher.
Oracle, however, is suffering in advance of today's post-close analyst meeting, at which some analysts expect management to guide earnings estimates lower. (
Adam Lashinsky
has the details in his
column today.)
The 23-analyst
First Call
consensus estimate for is for fourth-quarter earnings of 33 cents a share. The stock was down 1 3/4, or 7%, at 23 5/8.
10:59 a.m.: Stellar Tech Sector Bolsters Major Indices
Broad strength remained the rule of the day on Wall Street as
IBM
(IBM) - Get Report
continued to spark the
Dow Jones Industrial Average
and inspire the rest of the tech sector.
IBM, cruising higher after a positive analyst meeting yesterday, was up 14 9/16, or 6%, to 240 1/16 and was on pace for yet another all-time closing high. That boost had the Dow up 72 to 11,072, with about 68 points of that gain coming from the Armonk Armada. The
S&P 500
was up 6 to 1370.
The tech-laced
Nasdaq Composite Index
was up 20 to 2627, with
Cisco
(CSCO) - Get Report
and
Yahoo!
(YHOO)
leading the way but
Intel
(INTC) - Get Report
not participating.
TheStreet.com Internet Sector
index was up 5 to 662, and the still-rallying
Russell 2000
was up 3 to 452.
Market internals glowed with health.
New York Stock Exchange
advancers were leading decliners 1,641 to 931 on 240 million shares. On the
Nasdaq Stock Market
, 1,881 advancers were ahead of 1,293 decliners on 339 million shares. New 52-week highs were outpacing new lows 63 to 10 on the Big Board and 87 to 14 on the Nasdaq.
America Online
(AOL)
was in its accustomed place as leader of the NYSE's most actives, up 11/16 to 139 1/8 on 6 million shares.
Oracle
(ORCL) - Get Report
was most active on the Nasdaq, down 1 15/16, or 8%, to 23 7/16 amid expectations that the company will preannounce an earnings shortfall.
--
John J. Edwards III
10:02 a.m.: IBM Rally Powers Dow
The clean pates and luxuriant locks of Wall Street have their rally caps in place this morning, at least in the tech game, with enthusiasm about
IBM
(IBM) - Get Report
helping to send major indices higher.
Coming off a strong analyst meeting yesterday, IBM was up 11 1/2 to 237 in early trading and was the
New York Stock Exchange's
biggest opening gainer.
Merrill Lynch
and
Credit Suisse First Boston
were among the firms genuflecting in Large Cerulean's direction this morning.
The
Dow Jones Industrial Average
was up 67 to 11,067, but 54 points of that was coming from Fat Periwinkle. The
S&P 500
was up 7 to 1371.
The more tech-focused
Nasdaq Composite Index
was up 23 to 2629, led by
Cisco
(CSCO) - Get Report
,
MCI WorldCom
(WCOM)
,
Yahoo!
(YHOO)
and
Amazon.com
(AMZN) - Get Report
.
TheStreet.com Internet Sector
index was up 7 to 664.
The smallish-cap
Russell 2000
was up 3 to 452.
The bellwether 30-year Treasury bond was up a strong 22/32 to 92 19/32, its yield easing to 5.78%.
Most Up at Open -- Nasdaq
CMGI (CMGI) , up 5 5/8 to 245 3/8
: The company formed an alliance in which
Gateway
(GTW)
will take a $200 million stake in CMGI.
Most Down at Open -- NYSE
Caterpillar (CAT) - Get Report, down 1 to 59 3/4
.
Most Down at Open -- Nasdaq
Immunex (IMNX) , down 5 5/8 to 133 13/16
: The stock soared yesterday on word that Immunex will seek expanded uses of its
Enbrel
drug for rheumatoid arthritis.
--
John J. Edwards III
