Technology stocks, which had burst through a cloudy session on Wall Street, ended back in negative territory. The
Nasdaq Composite Index ended off 43 points. Meanwhile, the
Dow Jones Industrial Average's, which dropped as much as 400 points earlier today, then rallied back above the psychologically important 10,000 level, ended just below it, losing 115 to 9,975.
, currently the third-most actively traded Nasdaq stock, rose, but were down 1.19, or 1.1%, to $110.19, on the heels of a strong earnings report. The large-cap tech company posted earnings of 30 cents a share, topping the 20-analyst 26 cent estimate and the year-ago 16 cent result.
ended ahead $2, or 5.5%, to $38.19. Yesterday evening, the chip giant posted earnings that beat its revised expectations.
Other tech stocks lifting the Nasdaq off its lows includes
. Both companies impressed Wall Street with good earnings news last night.
PeopleSoft, a software manufacturer, posted third-quarter earnings of 8 cents a share, beating the 14-analyst estimate by a penny. The company also announced that it would buy back up to $100 million of its stock. This morning,
upped its rating on the company to buy from hold. In recent action, PeopleSoft popped 25.8%.
reported a loss of 8 cents a share for its first quarter, ahead of the five-analyst estimate of a negative 12 cent result. Lately, the personal digital assistant, or PDA, stock was up 17.6%.
But today's session, as market watchers know well, was not a lot of fun.
chopped 104 points off the Dow. After the closing bell yesterday, Big Blue posted earnings that beat estimates, but revenue at the low end of Wall Street's expectations. Big Blue was also cautious about its fourth quarter.
IBM's announcement in depth in an earlier story.
Not surprisingly, the Wall Street went negative on IBM today. Both
lowered their earnings estimates for the company.
cut its rating on IBM to hold from accumulate and
removed IBM from its recommended list.
dropped $4.94, or 5.5%, to $85.56 in sympathy with IBM.
reported a lower-than-expected profit. Chase blamed Nasdaq losses for hurting
results at its venture capital arm. Chase was off 2.8% to $36.88. J.P. Morgan, Chase's merger partner, reported earnings today that beat estimates, but in sympathy with its new acquirer, Chase, it was down 2.4% to $134.25.
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Both paper and retail stocks attracted positive investor attention in recent action. The
Philadelphia Stock Exchange Forest & Paper Products Index
was up 6.4%, while the
S&P Retail Index
was ahead 2.4%.
Drugs, traditionally defensive stocks, declined, even though many drug companies have reported strong earnings. Some analysts were blaming Democratic presidential candidate Al Gore, who was tough on the drug companies again last night. The
American Stock Exchange Pharmaceutical Index
was down 1%.
Oil stocks have declined in afternoon trading. The
Philadelphia Stock Exchange Oil Service Index
was down 0.4%, while the
American Stock Exchange Oil & Gas Index
was behind 1.3%.
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Most of the bond market rallied strongly as funds move into safer investments following ongoing signs of weakness in equity markets. But, after being higher for most of the day, the benchmark 10-year note ended slightly lower.
The market was relatively unconcerned by today's
Consumer Price Index
) for September. The results showed a 0.5% rise in the headline number and a 0.3% increase in the core rate. Energy prices rose 3.8% in the latest month, a big turnaround from August's 2.9% drop. On an annual basis, CPI is now running at a 3.8% rate, well ahead of last year's 2.7% increase.
After the CPI data, the market rallied sharply, but the benchmark 10-year
Treasury note ended down 3/32 to 100 13/32, to yield 5.694%. The bond market is clearly much more concerned with the weak performance of the stock market and its implications for lower interest rates than it is with the growing signs of inflationary pressure in the economy.
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