After taking a well-deserved nap, cyclicals awakened again today, while technology and Internet stocks bid a quick
to an early session pop and tumbled.
Dow Jones Industrial Average
was up 64.72, or 0.6%, to 10,783.31. Earlier, the Dow traded as high as 10,845.45.
were the biggest boosts to the Dow. Also notable on the upside in the Dow was
Morgan Stanley Cyclical Index
was up 0.9%.
The leaders in the Dow were mirroring what's going on overall in the market today, as tech and cyberspace stocks have declined while energy, basic materials and bank stocks have rallied.
Nasdaq Composite Index
was slumping 38, or 1.4%, to 2614.
was down about half a point to 1359. The energy, basic materials and financial industry groups were the best performers in the S&P 500, while the weakest group was technology.
Yesterday, both the Comp and the S&P 500 closed at record highs.
was off a fraction to 435.
Tech bellwethers were softer, with
Tech sector gauges were weaker. The
Philadelphia Stock Exchange Semiconductor Index
was down 1.9%. The
was off 1.9%, while the
Morgan Stanley High-Tech 35
TheStreet.com Internet Sector
index was tumbling 19, or 2.7%, to 695 in the wake of its recent rally.
-- which has had a nice run-up lately -- has fallen ahead of its earnings report expected after the close. AOL was also most active on the
New York Stock Exchange
, with 24.3 million shares changing hands.
Much of the market's pop early on was due to Wall Street-pleasing earnings out of
. eBay was up 4.2%. AT&T was up slightly.
Philip Roth, chief technical analyst at
Morgan Stanley Dean Witter
, said with the tech sector's sharp rebound after getting whacked recently, it is "not in a position to sustain an advance."
He said the market is going to have to look away from tech for short-term leadership, and he's looking at cyclicals, energy and capital goods stocks to provide that leadership.
Basic materials, bank and energy stocks were enjoying nice gains today.
Chicago Board Options Exchange Oil Index
was up 2.4%, while the
Philadelphia Stock Exchange Oil Service Index
Philadelphia Stock Exchange/KBW Bank Index
was up 2.1%. The
Philadelphia Stock Exchange Gold and Silver Index
was surging 4.6%.
Roth said while there's high risk in speculative areas of the market, the risk is "very small" in the basic materials and energy areas.
Louis Todd, head of equities trading at
, cited profit-taking for the decline in tech and Internet stocks. He noted that after the dramatic rally in the Nasdaq Comp of late, it was due to take a breather.
On the NYSE, advancers were beating decliners 1,645 to 1,196 on 548 million shares. On the
Nasdaq Stock Market
, losers were beating winners 1,880 to 1,809 on 678 million shares. On the NYSE, 72 issues had set new 52-week highs while 27 had touched new lows. On the Nasdaq, 55 issues had set new highs while new lows totaled 29.
was the Nasdaq's most active issue, with 23.5 million shares changing hands. It was up 3, or 18.3%, to 19 1/2.
As for the Treasury market, the 30-year Treasury bond lately was up 15/32 to 95 23/32, yielding 5.55%. (For more on the fixed-income market, see today's early
Meanwhile, among other equity indices, the
Dow Jones Utility Average
was up 1%, the
American Stock Exchange Composite Index
was up 0.2% and the
Dow Jones Transportation Average
was off 0.2%.
Tuesday's Midday Movers
Dow component AT&T was inching up 1/2 to 53 7/16 after reporting first-quarter operating earnings of 61 cents a postsplit share, including the impact of its March 9
acquisition, beating the 18-analyst forecast of 57 cents and moving ahead of the year-ago 45 cents.
was up 2 1/8 to 66 3/8 after
The Wall Street Journal
reported that the company is in preliminary discussions to align itself with either Microsoft or AOL to counter Telephone's $54 billion cash-and-stock bid for
. Comcast previously offered $48 billion in stock. MediaOne was up 1 9/16 to 80 3/8. Microsoft was down 3 5/16 to 84 3/4. Ahead of today's postclose earnings, AOL was down 5 13/16 to 156.
previewed the earnings report from Ma Net in a
piece this morning.
In other news:
was down 4 15/16, or 13.8%, to 30 3/4 after
Morgan Stanley Dean Witter
cut it to outperform from strong buy. Last night, the company missed first-quarter earnings estimates by 6 cents with a profit of 51 cents a share.
was up 3 1/8, or 7.7%, to 44 after
upgraded the stock to its recommended list from market perform.
was up 3 1/8, or 9.6%, to 35 5/8 after setting a 5-for-4 stock split.
Park Place Entertainment
was up 1 3/4, or 19.2%, to 10 7/8 after agreeing to buy
and other gaming assets from
for $3 billion in cash. The sale excludes the
golf resort and casino in Las Vegas. Starwood was down 7/16 to 34 9/16.
, a digital communications company, was soaring up 16 7/16, or 102.7%, to 32 7/16 after
Credit Suisse First Boston
priced its 3 million-share IPO at $16 a share.
Toys R Us
was up 1 11/16, or 8%, to 23 9/16 after announcing plans to establish a separate Internet sales unit in a strategic partnership with
, a Silicon Valley venture-capital firm. The company also said it acquired a 500,000-square-foot, automated distribution center in Memphis, Tenn.
eBay was up 8 11/16 to 217 7/8 after late yesterday posting first-quarter earnings of 5 cents a share, 3 cents ahead of the 10-analyst forecast and above the year-ago penny. Meanwhile, online auction house
-- rallying lately on word of an online audio auction planned for tonight -- was up 2 5/8, or 16%, to 19 1/16.
was up 6 3/16, or 15.4%, to 46 7/16 after last night topping first-quarter earnings estimates by 3 cents with a profit of 20 cents a share.