Skip to main content

Things were getting better -- but ended mixed.


Dow Jones Industrial Average ended ahead, rebounding from a midday funk, and trading not far from session highs. But the

Nasdaq Composite Index, after shaking off an



warning earlier today, ended in the red.

This morning,

Salomon Smith Barney

issued a negative report on the chip market and lowered Intel's 2001 earnings per share estimate by 20 cents. Intel is the world's largest semiconductor manufacturer; in recent trading, it was chipping off 25.5 from the Dow.

As a result, the

Philadelphia Stock Exchange Semiconductor Index

, referred to as the SOX, fell 5.8%. The semis could still see a turnaround today, as the market waits to hear earnings results from chipmakers






Good earnings results from SOX components late last week helped boost the measure 9.74% on Friday.

Dow winners this afternoon included:



, up 1.3% to $92.19,



, higher by 5.1% to $47.31, and

American Express


, ahead 3.4% to $55.75.

Shares of



, which will post earnings Wednesday, were down $3.38, or 6.3%, to $50.38.

Looking around the market, biotechnology names improved as the day wore on. Oil service stocks crumbled. And dot-coms have come back. See the "Sector Watch" down below for more details.

Back to top

Sector Watch

Earlier in the day, the Philadelphia Stock Exchange Semiconductor Index looked like a love child of Gerry Cooney and Leon Spinks. It was a bloodied, toothless hope without any hope of getting up off the canvas, reeling and bruised by an earnings cut in bellwether Intel.

Technology, especially the laboratory variety, was much stronger. The

S&P Biotechnology Index

rose 3.4%, while the

S&P Chemical Index

rose 1.8%. Elsewhere in the cubicle end of the tech sector, things were marginally higher. Internet Sector

rose 1.4%, while E-Commerce Index

rose 3.3%.

Retailers rocked out as many smaller sellers had great days, following after






. The

S&P Retail Index

was rising 3.1% to 750.8, pulling off its sub-700 52-week lows set just a few trading days ago.

Back to top


Treasuries benefited at the end of last week as a result of the renewed Middle East violence, which gave the bond market enhanced appeal as a safe haven.

Not so today. Although the overseas currency and equity markets were showing greater stability, the bond market was flat. The liquid 10-year note was up 2/32 at 100 3/32, yielding 5.736%, and trading in a tight range above and below its open.

Further indications that oil price pressures may be falling came in a statement by the Saudi oil minister, who suggested that if oil prices remain above $28 per barrel,


may increase output quotas.

With no major economic news scheduled today, it was unlikely that credit markets would show too much interest in pushing strongly in either direction.

Back to top