Dow, Powered by 3M, Remains Well in Record Territory
3M
was powering the
Dow Jones Industrial Average
into record territory heading into the final hour of trading, while Internet stocks tumbled.
The Dow was up 123 to 10,912. 3M was up 3 7/8 to 92 7/8.
Meanwhile,
TheStreet.com Internet Sector
index was down 23 to 633.
Jay Suskind, head of institutional equity trading at
Ryan Beck
, said for the Internet stocks, the "bloom might be off the rose" for the high-flying sector. "People aren't coming in as they used to in order to buy on the dips," he said, noting that when buyers do come in there's "a lot less intensity."
The
S&P 500
was up 5 to 1341. The
Nasdaq Composite Index
TheStreet Recommends
was down 25 to 2517. The
Russell 2000
was up 1 to 433.
The 30-year Treasury bond was down 3/32 to 94 1/32, yielding 5.67%.
Suskind said there's still talk in the market that the bond market is a "screaming buy" because of the fact that the economy's growth can't keep up with the steamy pace set in the first quarter. However "we'll have to wait and see."
On the
New York Stock Exchange
, advancers were beating decliners 1,857 to 1,082 on 610 million shares. On the
Nasdaq Composite Index
, winners were beating losers 1,979 to 1,909 on 669 million shares.
On the NYSE, 62 issues had set new highs 52-week while 18 had touched new lows. On the Nasdaq, 70 stocks had set new highs while 33 touched new lows.
On the Big Board,
America Online
(AOL)
was most active, with 18 million shares changing hands. It was down 8 5/16 to 134 9/16.
On the Nasdaq,
Microsoft
(MSFT) - Get Microsoft Corporation Report
was most active, with 26 million shares changing hands. It was down 2 7/16 to 78 13/16.
2:02 p.m.: Cyclicals Power Dow Deep Into Record Territory
Cyclicals were shining this afternoon and providing the fuel for the
Dow Jones Industrial Average
to soar into record territory, while Internet stocks were taking a beating.
Powering the Dow this afternoon was
3M
, which was up 4 5/8 to 43 5/8, accounting for 22 points of the Dow's advance.
The Dow was up 149 to 10,938, far above its closing record level of 10,878.38.
For the venerable blue-chip gauge, it took some economic data this morning for it to shake off some early weakness.
Stocks opened on the soft side today, but reversed course after the release of the
National Association of Purchasing Management's Purchasing Managers' Index
at 10 a.m. EDT. The index slipped to 52.8 in April from 54.3 in March. The slip in the index helped ease market participants' fears that the economy may be getting too hot and that the
Federal Reserve
might have to raise interest rates to cool it off down the road.
On Friday, strong economic data sparked fears of inflation. The
Commerce Department
reported that
gross domestic product
advanced at a 4.5% annual rate in the first quarter, well above economists' forecasts of 3.3% growth. The
National Association of Purchasing Management-Chicago
said its index rose to 63.3 in April from 57.0 in March.
The 30-year Treasury bond was down 2/32 to 94 2/32, yielding 5.67%.
The
Nasdaq Composite Index
was down 15 to 2528. The biggest losing stocks on the
Nasdaq Stock Market
today are Internet stocks, led on the downside by
Amazon.com
(AMZN) - Get Amazon.com Inc. Report
. Amazon.com was down 18 5/8, or 11%, to 153 1/2.
TheStreet.com Internet Sector
index was down 18 to 638.
The
S&P 500
was up 7 to 1342. The
Russell 2000
was up 1 to 434.
The
Morgan Stanley Cyclical Index
was up 2%.
Basic materials and energy stocks rallied. The
Morgan Stanley Commodity Related Equity Index
was up 2%, the
Chicago Board Options Exchange Oil Index
was up 2%, while the
Philadelphia Stock Exchange Oil Service Index
was up 4%.
On the
New York Stock Exchange
, advancers were beating decliners 1,862 to 1,028 on 512 million shares. On the Nasdaq, winners were beating losers 1,965 to 1,819 on 567 million shares.
On the NYSE, 53 issues had set new 52-week highs while 17 had touched new lows. On the Nasdaq, 67 issues had set new highs while new lows totaled 29.
On the Big Board,
America Online
(AOL)
was most active, with 16 million shares changing hands. It was down 7 5/16 to 135 7/16.
On the Nasdaq,
Microsoft
(MSFT) - Get Microsoft Corporation Report
was most active, with 21 million shares changing hands. It was down 1 15/16 to 79 5/16.
Sector Focus: Natural Gas
Natural gas stocks were higher this afternoon, adding on to the outsized gains they've enjoyed over the last couple of months.
The
American Stock Exchange Natural Gas Index
was up 1%, led by
Apache
(APA) - Get APA Corporation Report
, which has surged 1 13/16, or 6%, to 146.27.
From the close on March 1 to this afternoon, the index is up nearly 45%.
Apache's surge today came compliments of
Merrill Lynch
, which upgraded the stock to near-term buy from near-term accumulate. On Feb. 1, it closed at 18 1/8.
Enron
(ENE)
, which is a component of the index, was up 3/4 to 76. Earlier, it hit a 52-week intraday high, peaking at 76 3/8.
1:10 p.m.: Midday Musings: Dow Cruises Higher but Techs Still Can't Get Going
11:59 a.m.: Stocks Mostly Higher as Dow Jumps
Stocks were higher late this morning, led by the
Dow Jones Industrial Average
, while Internet stocks slumped.
The Dow was up 94 to 10,883, with
Chevron
(CHV)
and
DuPont
(DD) - Get DuPont de Nemours Inc. Report
powering the venerable blue-chip average.
After opening lower, both stocks and bonds reversed course after the
National Association of Purchasing Management
said its
Purchasing Managers' Index
slipped to 52.8 in April from 54.3 in March. The drop in the index soothed fears in the wake of recent economic data that the economy was getting too hot and that the
Federal Reserve
would have to intervene and raise interest rates to cool things off.
However, the long bond has fallen back into negative territory, down 3/32 to 94 2/32, yielding 5.67%.
On Friday, two economic reports showed the economy was barreling along at a steamy clip. The
Commerce Department
reported that
gross domestic product
advanced at a 4.5% annual rate in the first quarter, well above economists' forecasts of 3.3% growth. The
National Association of Purchasing Management-Chicago
said its index jumped to 63.3 in April from 57.0 in March.
The
S&P 500
was up 7 to 1342. The technology chunky
Nasdaq Composite Index
was down 3 to 2540. The
Russell 2000
was up 1 to 434.
TheStreet.com Internet Sector
index was down 15 to 642.
Basic materials and energy stocks were rallying. The
Morgan Stanley Commodity Related Equity Index
was up 1%, the
Chicago Board Options Exchange Oil Index
was up 2%, while the
Philadelphia Stock Exchange Oil Service Index
was up 3%.
The
Philadelphia Stock Exchange Forest & Paper Products Index
was up 2%.
On the
New York Stock Exchange
, advancers were beating decliners 1,752 to 966 on 333 million shares. On the
Nasdaq Stock Market
, winners were beating losers 1,907 to 1,527 on 372 million shares.
On the NYSE, 40 issues had set new 52-week highs while 12 had touched new lows. On the Nasdaq, 58 issues had set new highs while new lows totaled 18.
On the Big Board,
America Online
(AOL)
was most active, with 9 million shares changing hands. It was down 5 13/16 to 136 15/16.
On the Nasdaq,
Microsoft
(MSFT) - Get Microsoft Corporation Report
was most active, with 11 million shares changing hands. It was down 1 1/16 to 80 3/16.
Tech Focus
Tech sector barometers were mixed. The
Nasdaq 100
was up fractionally, while the
Morgan Stanley High-Tech 35
was down 1%. The
Philadelphia Stock Exchange Semiconductor Index
was up 1%. The
Philadelphia Stock Exchange Computer Box Maker Index
was also up 1%.
News that
Philips Electronics
(PHG) - Get Koninklijke Philips N.V. NY Registry Shares Report
reached a friendly pact to buy chipmaker
VLSI Technology
(VLSI)
sent both VLSI's and Philips' stocks higher. VLSI was up 1 15/16, or 10.3%, to 20 13/16, while Philips advanced 3 3/8 to 88 1/2.
The deal brings to an end Philips' nearly two-month hostile takeover attempt. Philips said it will pay $21 a share for VLSI, a chunky premium above its hostile bid that valued the chipmaker at $17 a share, or $777 million.
Market participants don't seem to think too much of
RealNetworks'
(RNWK) - Get RealNetworks Inc. Report
release of its new software
RealJukebox
, which allows consumers to record CD collections to PC hard drives and find and download music from the Internet.
TheStreet.com
wrote about the software in a
story this morning. RealNetworks was down 9 3/8 to 212 1/8.
In other news,
RSL Communications
(RSLC)
is planning an IPO of its wholly owned Internet telephony subsidiary,
Delta Three
. The offering is expected to take place during the third quarter. RSL was down 1 1/2 to 31 5/8.
Some
Datek Online
customers were blocked from entering orders or checking their portfolios early Monday due to a configuration problem that caused a slowdown in processing the 57,000 orders that had piled up over the weekend, Datek marketing director Robert Bethge said. Customers were unable to place orders during and immediately follow the opening, he said, and until 11 a.m. EDT the system continued to reject some orders.
Bethge said that trading and the portfolios have been up and running since then.
11:17 a.m.: NAPM Report Pushes Stocks Off Session Lows
Soothing economic news helped drive the 30-year Treasury bond off its session lows and lift most major market barometers into positive territory.
The
National Association of Purchasing Management
said its
Purchasing Managers' Index
slipped to 52.8 in April from 54.3 in March. The long bond erased its early loss, up 5/32 to 94 9/32, yielding 5.65%. On Friday, two economic reports, which showed vigorous economic growth, sparked fears of an overheating economy and worries that the
Federal Reserve
might have to raise interest rates to cool it down.
The
Dow Jones Industrial Average
was up 61 to 10,850. The
S&P 500
was up 3 to 1338.
The
Nasdaq Composite Index
was down 5 to 2538. The
Russell 2000
was up 2 to 435.
TheStreet.com Internet Sector
index was up 11 to 645.
Meanwhile, in the news,
MediaOne Group's
(UMG)
board has accepted
AT&T's
$85 cash-and-stock offer for the company, which the board said was a "superior proposal" to the previous merger deal MediaOne reached with
Comcast
(CMCSA) - Get Comcast Corporation Class A Common Stock Report
. Under terms of the Comcast deal, Comcast has until Thursday to respond to the AT&T proposal.
AT&T and Comcast rose, while MediaOne slipped.
On the
New York Stock Exchange
, advancers were beating decliners 1,565 to 958 on 215 million shares. On the Nasdaq, winners were beating losers 1,749 to 1,421 on 255 million shares.
On the NYSE, 26 issues had set new 52-week highs while 11 had touched new lows. On the Nasdaq, 48 issues had set new highs while new lows totaled 16.
Meanwhile, one of the contributors to the market's recent surge has been attributed to strong first-quarter earnings. Some market analysts lately have wondered where the market might get its inspiration for more upside, now that the earnings season is drawing to a close.
A handful of earnings reports were released this morning.
Arco
(ARC) - Get ARC Document Solutions Inc. Report
posted first-quarter operating earnings of 53 cents a share, vastly outstripping the First Call 21-analyst estimate of 29 cents, but down from the year-ago 65 cents.
theglobe.com
(TGLO)
reported a first-quarter pro forma loss of 47 cents a share, narrower than the First Call two-analyst estimate of a loss of 55 cents. Its stock jumped on the news, up 6 3/4, or 11%, to 67 3/8.
On the Big Board,
America Online
(AOL)
was most active, with 6 million shares changing hands. It was down 5 3/4 to 137.
On the Nasdaq,
Microsoft
(MSFT) - Get Microsoft Corporation Report
was most active, with 8 million shares changing hands. It was down 1 1/16, or 1%, to 80 1/4.
9:58 a.m.: Stocks Open Mostly Lower
Stocks were mostly lower in the early going while the 30-year Treasury bond was tumbling again after falling precipitously on
Friday.
The
Dow Jones Industrial Average
was up 2 to 10,791. The
S&P 500
was down 4 to 1331. The
Nasdaq Composite Index
was down 17 to 2526. The
Russell 2000
was down fractionally at 433.
TheStreet.com Internet Sector
index was down 11 to 646.
The 30-year Treasury bond was down 15/32 to 93 21/32, yielding 5.70%.
Most Up at Open -- NYSE
Consolidated Stores (CNS) - Get Cohen & Steers Inc Report, up 1 15/16 to 36 5/16
.
Most Up at Open -- Nasdaq
Qualcomm (QCOM) - Get QUALCOMM Incorporated Report, up 8 3/8 to 208 3/8
.
Most Down at Open -- NYSE
Bristol-Myers Squibb (BMY) - Get Bristol-Myers Squibb Company Report, down 1 15/16 to 61 5/8
.
Most Down at Open -- Nasdaq
Western Wireless (WWCA) , down 15 11/16 to 25 3/8
.
