Market Remains Depressed After Monday's Record-High Close
Pockets of strength were scant heading into the final hour of trading, as most of the major market gauges tumbled.
Transportation and tobacco stocks were notable on the upside. The
Dow Jones Transportation Average
was up 1%, while the
American Stock Exchange Tobacco Index
was up 2%.
Meanwhile, the much-ballyhooed debut of investment bank
Goldman Sachs
(NYSE:GS) has been by all accounts a smashing success. In its first day of trading, Goldman's stock has surged 19 1/16, or 36%, to 72 1/16. Goldman was most active on the
New York Stock Exchange
, with 20 million shares changing hands.
But echoing the sentiment of some in the market, Ricky Harrington, senior vice president and technical analyst at
Interstate/Johnson Lane
, said the Goldman deal could coincide with a market top and could be a milestone for the market. He said people might look back at the Goldman IPO as right at or very close to the top of the market.
Weakness in the market today has been blamed on profit-taking after yesterday's rally and pressure from a continuing fall in the bond market.
The
Dow Jones Industrial Average
was down 86 to 10,929, just a smidgen off its session lows.
American Express
(AXP) - Get Report
and
General Motors
(GM) - Get Report
were the biggest drags on the Dow, off 4 7/8 to 128 1/2 and 4 11/16 to 89 1/16, respectively. GM today reported that its U.S. car and truck sales in April fell 4.2%, larger than some analysts expected.
The
S&P 500
was down 17 to 1338. The
Nasdaq Composite Index
was down 25 to 2511. The
Russell 2000
was up 1 to 435.
TheStreet.com Internet Sector
index was down 1 to 632.
Harrington said that if the stock market closes weak, it might show that yesterday's rally was perhaps a fluke.
The 30-year Treasury bond was down 31/32 to 93 7/32, yielding 5.73%.
Harrington said if bonds weaken further over the next day or two, stocks will probably sustain a further hit, noting that the yield on the long bond is at the highest level it has been at in a while.
On the
New York Stock Exchange
, decliners were beating advancers 1,489 to 1,436 on 738 million shares. On the
Nasdaq Composite Index
, losers were beating winners 2,114 to 1,788 on 718 million shares.
On the NYSE, 105 issues had set new highs 52-week while 14 had touched new lows. On the Nasdaq, 69 stocks had set new highs while 56 touched new lows.
On the Nasdaq,
Microsoft
(MSFT) - Get Report
was most active, with 27 million shares changing hands. It was down 1 1/2 to 78 3/8.
2:01 p.m.: Stocks Test Session Lows
The major market averages were just off their session lows early this afternoon, while Internet and airline stocks were notable on the up side.
Surprising no one, investment banking titan
Goldman Sachs
(GS) - Get Report
was sharply higher in its first day of trading, up 18 5/8, or 35%, to 81 58. It was most active on the
New York Stock Exchange
, with 19 million shares changing hands. Its intraday peak is 77 1/4.
The
Dow Jones Industrial Average
was down 82 to 10,932. Yesterday, the Dow closed above 11,000 for the first time.
American Express
(AXP) - Get Report
was the biggest drag on the Dow, down 5 3/8 to 128.
The
S&P 500
was down 16 to 1339.
The
Nasdaq Composite Index
was down 11 to 2524.
Elsewhere, the
Russell 2000
was up 2 to 436.
TheStreet.com Internet Sector
index was up 5 to 638.
The 30-year Treasury bond was down 31/32 to 93 7/32, yielding 5.73%.
Airline stocks were powering the
Dow Jones Transportation Average
to beefy gains on the day.
AMR
(AMR)
, parent of American Airlines, was up 3 to 72 9/16;
Delta Air Lines
(DAL) - Get Report
was up 3 1/2 to 67 3/4, while
US Airways
(U)
was up 2 3/4 to 57 3/8.
The
American Stock Exchange Airline Index
is soaring, up 4%.
On the NYSE, advancers were edging decliners 1,478 to 1,435 on 618 million shares. On the Nasdaq, losers were leading winners 1,990 to 1,786 on 596 million shares.
On the NYSE, 101 issues had set new 52-week highs while 13 had touched new lows. On the Nasdaq, 64 issues had set new highs while new lows totaled 46.
On the Nasdaq,
Microsoft
(MSFT) - Get Report
was most active, with 23 million shares changing hands. It was down 15/16 to 79.
Focus: Today's Other Trading Debuts
Mapquest.com
(MQST)
was lately up 10, or 67%, to 25, in its trading debut. The online map and directions provider's 4.6 million-share IPO was priced last night at $15 a share. The stock hit an intraday high of 28.
Flycast Communications
(FCST)
, a Web advertising network, was up 8 1/2, or 34%, to 33 1/2. Its 3 million-share IPO was priced last night at $25 a share. The stock hit an intraday high of 37.
1:20 p.m.: Midday Musings: Goldman Gets a Hearty Welcome but Doesn't Share the Wealth
12:02 p.m.: Stocks Mixed as Goldman Soars in Its Debut
While
Goldman Sachs
(GS) - Get Report
has leapt in its trading debut, the major market averages were mixed late this morning.
Goldman stock was up 18 9/16, or 35%, to 71 9/16, and was most active on the
New York Stock Exchange
, with 16 million shares changing hands. Its intraday peak is 77 1/4.
Technology and Internet stocks were rebounding from their recent selloffs. Transportation stocks were soaring.
The
Nasdaq Composite Index
was up 11 to 2547.
TheStreet.com Internet Sector
index was up 11 to 644.
Blue chips were softer. The
Dow Jones Industrial Average
was down 31 to 10,983. Financial services powerhouse
American Express
(AXP) - Get Report
was the biggest drag on the Dow, down 4 to 129 3/8.
The
S&P 500
was down 8 to 1347. The
Russell 2000
was up 3 to 436.
The
Dow Jones Transportation Average
was up 2%.
The 30-year Treasury bond was down 1 1/32 to 93 7/32, yielding 5.73%.
The poor performance of the bond market lately has become a cause of concern for some market analysts. Some analysts have said recently that the stock market will be focusing more closely on interest rates now that earnings season is drawing to a close.
In a note to clients yesterday sent out before the open, John Roque, senior analyst at
Arnhold & S. Bleichroeder
, wrote that he's cautious on the market because he said the yield on the 30-year bond will move above 5.7% with the next target being 6.1% and the bond futures contract will close below 119 9/32.
He also wrote that his concern about the market will grow if the
Philadelphia Stock Exchange Utility Index
makes a new low beneath 300, and if the
Philadelphia Stock Exchange/KBW Bank Index
closes under 836. He has first support for the utility index at 310 and for the bank index at 900.
Late this morning, the utility index was down 1% to 322.90, while the bank index has slumped 2% to 915.12.
Another cause of concern for Roque is recent action in bellwether stock
General Electric
(GE) - Get Report
. GE "is acting very, very poorly," he said in an interview this morning, adding that he thinks the stock is going to test the 100 level. GE was down 1/2 to 105 1/8.
On the Big Board, advancers were beating decliners 1,531 to 1,264 on 421 million shares. On the
Nasdaq Stock Market
, losers were beating winners 1,750 to 1,718 on 406 million shares.
On the NYSE, 95 issues had set new 52-week highs while 9 had touched new lows. On the Nasdaq, 52 issues had set new highs while new lows totaled 33.
On the Nasdaq,
Microsoft
(MSFT) - Get Report
was most active, with 15 million shares changing hands. It was up 5/8 to 80 1/2.
Tech Focus
Tech sector barometers were higher. The
Nasdaq 100
was up 1%, while the
Morgan Stanley High-Tech 35
was up fractionally. The
Philadelphia Stock Exchange Semiconductor Index
was up 1%. The
Philadelphia Stock Exchange Computer Box Maker Index
was up fractionally.
In the news,
Getronics
, a Dutch information technology company, is buying
Wang Global
(WANG)
in a deal worth about $2 billion. Getronics will buy all 46 million outstanding Wang shares for $29.25 each, a 15% premium over Wang's closing price yesterday.
Wang was up 3 1/4, or 13%, to 28 3/4.
In other news,
Wall Data
(WALL)
was sharply lower after yesterday warning it will report a fourth-quarter net loss due to its restructuring into two separate companies. The stock was down 4, or 26%, to 11 3/8. The
First Call
single-analyst estimate called for operating earnings of 25 cents a share vs. the year-ago profit of 7 cents. The company also said it hired an investment bank to explore the possibility of selling its
Rumba
Internet-hosting business or spinning off its
Cyberprise
enterprise information business.
10:55 a.m.: Goldman Makes a Smashing Debut but Most Other Stocks Falter
Goldman Sachs
(GS) - Get Report
was soaring in its trading debut, while the market's major gauges were mostly weaker at midmorning.
Goldman was up 22 1/4, or 42%, to 75 1/4. Its IPO was priced yesterday at $53 a share. It was second-most active on the
New York Stock Exchange
, with 10 million shares changing hands.
Meanwhile, Internet stocks were showing signs of life after having taken a beating lately, while in the bond market, the Treasury market was down.
The 30-year Treasury bond was down 30/32 to 93 7/32, yielding 5.73%. The long bond's weakness of late has caused some alarm among some stock-market watchers.
TheStreet.com Internet Sector
index was up 15 to 648.
CMGI
(CMGI)
was soaring, up 19 11/16, or 8%, to 255.
The
Dow Jones Industrial Average
was down 38 to 10,977.
American Express
(AXP) - Get Report
was the biggest drag on the Dow, off 3 3/16 to 130 3/16.
Elsewhere, the
S&P 500
was down 9 to 1346.
The
Nasdaq Composite Index
was down 1 to 2534. The
Russell 2000
was up 2 to 436.
On the
New York Stock Exchange
, advancers were beating decliners 1,400 to 1,172 on 279 million shares. On the Nasdaq, winners were beating losers 1,590 to 1,568 on 254 million shares.
On the NYSE, 79 issues had set new 52-week highs while 7 had touched new lows. On the Nasdaq, 43 issues had set new highs while new lows totaled 20.
On the Big Board,
Key Energy Services
(KEG) - Get Report
was most active, with 11 million shares changing hands. It was up 1/8 to 3 5/16.
On the Nasdaq,
Microsoft
(MSFT) - Get Report
was most active, with 9 million shares changing hands. It was up 3/16 to 80 3/16.
10:03 a.m.: Stocks Mostly Up After Monday's Record-High Close
The major market averages were mostly higher early on, a day after the
Dow Jones Industrial Average
closed above 11,000 for the first time ever
yesterday.
Meanwhile,
Goldman Sachs
(NYSE:GS) will begin trading today on the
New York Stock Exchange
. Shares of the investment bank were indicated at $70 to $80.Goldman's IPO was priced yesterday near the top of its range at $53 a share. An additional 9 million shares were added to the 60 million-share deal when Goldman exercised its overallotment option, bringing total proceeds to $3.7 billion.
TheStreet.com
wrote about the IPO in a story
last night.
The Dow was up 13 to 11,028. The
S&P 500
was down 1 to 1353. The
Nasdaq Composite Index
was up 3 to 2538. The
Russell 2000
was up 2 to 435.
TheStreet.com Internet Sector
index was up 7 to 640.
The 30-year Treasury bond was down 8/32 to 93 29/32, yielding 5.68%.
Most Up at Open -- NYSE
Gatx (GMT) , up 1 7/8 to 37 3/16
.
Most Up at Open -- Nasdaq
Wang Global (WANG) , up 3 5/16 to 10 1/16
:
Getronics
, a Dutch information technology company, is buying Wang in a deal worth about $2 billion. Getronics will buy all 46 million outstanding Wang shares for $29.25 each, a 15% premium over Wang's closing price yesterday.
Most Down at Open -- NYSE
Ameritech (AIT) - Get Report, down 1 15/16 to 65
.
Most Down at Open -- Nasdaq
Wall Data (WALL) , down 5 3/16 to 10 1/16
: The company yesterday warned it will report a fourth-quarter net loss due to its restructuring into two separate companies. The single-analyst estimate called for operating earnings of 25 cents a share vs. the year-ago profit of 7 cents. The company also said it hired an investment bank to explore the possibility of selling its
Rumba
Internet-hosting business or spinning off its
Cyberprise
enterprise information business.
