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.
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
, ahead 3.4% to $55.75.
, 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.
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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.
TheStreet.com Internet Sector
rose 1.4%, while
TheStreet.com E-Commerce Index
Retailers rocked out as many smaller sellers had great days, following after
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.
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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.
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