Today, it's the
Nasdaq Composite Index's turn to shine.
Following a 245-point
surge on the
Dow Jones Industrial Average yesterday and a decline in the Nasdaq, the tech-heavy index was looking cheap today. The Nasdaq lost almost 300 points in little over a week, and was just a stone's throw from its lows for the year at yesterday's close. Investors stormed the index in search of bargains at the open and it was lately charging higher.
The Dow, meanwhile, was hanging on to yesterday's gains by its bootstraps, lately wavering near break-even. The king of
Procter & Gamble
wasn't helping any.
The consumer products giant reported earnings this morning in-line with estimates. The company's share price has been slashed by earnings warnings for most of this year, but had recovered some 19% since the company reiterated its earnings growth projections for fiscal 2000 and set moderate future targets. Procter & Gamble was lately falling 7.6% to $71.06 and was cutting over 26 points off of the Dow.
The few counterpoints to general weakness on the blue-chip included
, adding 16 points of upswing,
, adding 11, and
, adding 8. However, breadth on the
New York Stock Exchange was reasonably strong, with winners outpacing losers 15 to 10.
Back on the Nasdaq, yesterday's most severely punished stock,
was being forgiven. Cisco tumbled yesterday after its earnings estimates were slashed by
. It was lately the Nasdaq's most active, rising 6.5% to $51.19.
fell 17.5% after reports that
plans to stop using Rambus' DRAM chips in its
platforms. Rambus was lately down $9.44 to $43.13, while Intel rose $1.44 to $46.44.
After getting knocked down sector by sector on valuation concerns, the PC-makers, semiconductors and the optical and networking stocks, were looking relatively cheap. Optical and networking stocks were getting the biggest boost, led by
, up 10%. The beaten-up semiconductors and PC-makers were also having a better day. The
Philadelphia Stock Exchange Computer Box Maker Index
was up 4% and the
Philadelphia Stock Exchange Semiconductor Index
was 5.2% higher.
Nortel, which last week warned of slowing optical sales, has been responsible for much of the recent rout in the networking sector.
And PC-making Goliath
shares were rising 4.1% to $97.19 on news that its Japanese unit was planning a deal with Japan's
that would be worth $13.8 billion over a 10-year period.
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The defensive favorites of yesterday were sagging today, with cyclicals, paper stocks and financials getting whacked.
Philadelphia Stock Exchange Forest & Paper Products Index
was 1.1% lower after soaring yesterday on an upgrade from
Deutsche Banc Alex. Brown
. This morning Dow components
were falling 0.5% and 3%, respectively. The two names were upgraded to strong buy from buy by Deutsche yesterday.
Cyclicals rose yesterday after
upped its weighting on this sector in its global portfolio yesterday. The
Morgan Stanley Cyclical Index
had lately turned modestly up after an earlier decline this morning, rising by 0.2%. Oil drillers were mixed today, despite a sector upgrade from Lehman.
Sante Fe International
gained 0.9%, while the
Philadelphia Stock Exchange Oil Service Index
Biotechs were finally rallying back after a three-day selloff. The
Nasdaq Biotechnology Index
was up 3.9%.
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Bonds were firmer with traders hopeful that this week's economic data will show further signs of a slowing economy and provide a supportive environment for the fixed-income market.
The benchmark 10-year
Treasury note is at 100 7/32, up 4/32, to yield 5.717%.
Treasury bondis at 107 2/32, also 4/32 higher, to yield 5.75%.
New home sales
rose to a seasonally adjusted annual rate of 946,000 in September from 866,000 in August, the fastest rate of sales since February. Mortgage interest rates have been declining steadily since mid-May and stand at their lowest levels in nearly a year.
BTM Weekly U.S. Retail Chain Store Sales Index
chart ) for the week ended Oct. 28 slipped 1.2% after a decline of 0.2% in the prior week.
APICS Business Outlook Index
) for September rose to 53.5 from 49.3 in August.
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