Investors looking for a relief rally got a bit of a break this morning. But even after yesterday's
market meltdown, Wall Street experts are not convinced stocks have hit bottom.
On the heels of yesterday's 436-point loss on the
Dow Jones Industrial Average, the blue-chip index has been rising and falling all morning. It was lately in the red -- and that's where every Dow stock closed yesterday. Today, several were on the rise, including
J.P. Morgan Chase
Nasdaq Composite Index, which closed below 2,000 for the first time since Dec. 1998, was gaining. At last look, large-cap technology stocks that hit new 52-week lows yesterday were bouncing back from the selloff.
gained 7.9% to $18.38,
rose 6.6% to $16.13 and
lifted 3.9% to $51.38. Chip stocks were on the upswing, along with some computer makers and dot-coms.
Still, market gurus caution investors to beware of a sucker's rally since there aren't any positive catalysts to spur the markets higher today. "We are way oversold here, but the problem with yesterday's selloff is that there was no real volume -- not enough to convince anyone we've seen a real bottom in here," said Ray Hawkins, vice president of block trading at
J.P. Morgan Chase
As if the headlines from
could get any worse. Just days after it set plans to slash up to 17% of its workforce, the networking giant
said it remains doubtful about its future. "We are not seeing a turnaround," CEO John Chambers said this morning at the
Global Investor conference in New York. Six weeks into the networking giant's fiscal third quarter, he said, "we see the same slow growth we saw in January." Despite the news, Cisco was up 8% to $20.31. Its bad news was one of the catalysts for yesterday's plunge.
In economic news, the
retail sales report for February, released this morning, confirmed that consumers curbed their spending significantly last month. Sales were significantly lower than economists were expecting. The data helps make the case for aggressive rate cuts to help get the economy back on its feet. Indeed the
fed fund futures contract, a good proxy of expected monetary policy, bumped up the changes of a 75-basis-point cut to 82%. The market had already fully priced in a 50 basis-point ease in the
fed funds rate at the
Federal Reserve's upcoming meeting on March 20.