The loathed of late were loved today on Wall Street.
And the loved, who've been loved for a long time, in the end today, after a lengthy intraday spat, saw more love again.
Traders and investors rushed to the beaten-up, commodity-related industrial and cyclical stocks (the loathed), while the long-beloved technology, Internet and telecommunications stocks (the loved) were shunned for a good portion of the day. But, beginning late in the morning the love came back to those sectors as buyers came in to help them close a mile off their intraday lows.
Also drawing some strong buying were financials, which have been decimated lately. And energy-related stocks also turned in a fine performance.
The most stunning action was in the
Nasdaq Composite Index
, which pulled off a breathtaking rally from some steep losses, recovering from a 127.45-point intraday plunge to close in the green.
Scott Curtis, senior equity trader at
Brown Brothers Harriman
, pointed out that most of the day was marked by a big rotation out of tech and into some of the recently trashed areas of the market. As for the notable afternoon pickup in the market, particularly the tech sector, there was a lot of 401(K) money chasing tech stocks and comments by
Governor Ed Gramlich that the Fed wasn't targeting the stock market regarding Fed policy probably giving the market a bit of a lift, he said.
Others said that it was tough to pin the reversal in tech on anything in particular.
Doug Myers, vice president of equity trading at
in Atlanta, said that "in the old days, you could blame it on an event," a news item, a statement, and those situations still exist in the market, but in these intraday swings in the market, "there's no event" sometimes.
Dow Jones Industrial Average
rallied 198.25, or 1.9%, to 10,718.09. Reflecting the strength in financials, cyclicals and other moribund areas of the market overall, the Dow was led higher by gains in
. Also sparking to live today was
Procter & Gamble
The Nasdaq Comp rose 2.22 to 4420.77, but a mile off its intraday bottom of 4291.10, which represented a drop of 127.45 from
yesterday's close. The
gained 10.90, or 0.3%, to 3997.03, after trading down to the 3848.37 level intraday. The biggest gainer on the Nasdaq in terms of value was
, which soared on what was described as a huge short squeeze. Rambus hopped 40 19/64, or 36.2%, to 151 47/64.
added 12.11, or 0.9%, to 1402.05. The
rose fractionally to close at 540.24.
TheStreet.com Internet Sector
index shed 4.32, or 0.4%, to 1135.28, but off its intraday bottom of 1108.65. Leading the DOT higher was
Check Point Software Technologies
, which rallied 12 5/16 to 184 1/4, after
Warburg Dillon Read
raised its price target on the stock to 195 from 138.
TheStreet.com New Tech 30
advanced 4.97, or 0.7%, to 688.83. The TSC New Tech 30, unveiled Jan. 5, is a market-cap-weighted index focused on tracking the most scorching part of the market, the magnet for Wall Street's hot money.
Meanwhile in the Treasury market, the 10-year note was up 1/32 to 99 19/32, yielding 6.56%. The 30-year Treasury bond was down 8/32 to 100 2/32, putting its yield at 6.24%. (For more on the fixed-income market, see today's Bond
Financials posted a solid session. The
Philadelphia Stock Exchange/KBW Bank Index
rose 2.4%. The
NYSE Financial Index
gained 1.8%. The
S&P Insurance Index
Cyclicals rallied. The
Morgan Stanley Cyclical Index
surged 2.6%. The
Morgan Stanley Commodity Related Equity Index
Energy-related stocks soared, particularly oil and oil service stocks. The
Chicago Board Options Exchange Oil Index
added 3.1%, while the
Philadelphia Stock Exchange Oil Service Index
Natural gas stocks also advanced. The
American Stock Exchange Natural Gas Index
Going forward, Paul Cherney, market analyst at
, thinks the Nasdaq's "going to see choppy trade." He said that the Nasdaq has "considerable, substantial support" beginning with prints of 4300 and running down to 3750. He pointed out that the Nasdaq fell a little under the 4300 level today and then found some buyers.
As for the S&P 500, he said the 1350 through 1250 area is a big band of support for the index. He said its overhead resistance is pretty well established in the 1440 to 1478 and he's expecting that resistance area is going to hold for a few weeks.
Cherney pointed out that once the market gets into March and April, there's a tendency for it -- except for when stocks are in "super bull runs" -- to not to do too much of anything.
New York Stock Exchange
trading, 1.088 billion shares were exchanged while advancing stocks beat decliners 1,538 to 1,471. In
Nasdaq Stock Market
action 1.705 billion shares traded while losers beat winners 2,341 to 1,862. New 52-week lows beat new highs 168 to 50 on the NYSE while new highs beat new lows 232 to 114 in over-the-counter trading.
Among other indices, the
Dow Jones Utility Average
added 0.37, or 0.1%, to 307.42; the
Dow Jones Transportation Average
fell 18.38, or 0.7%, to 2448.90; the
American Stock Exchange Composite Index
rose 0.84, or 0.1%, to 894.32.
For coverage of today's top stocks in the news, see the Company Report, published separately