You love them. You really love them.
Dow Jones Industrial Average, which has been in dire need of positive attention, ended well above that critical 10,000 level, while the
Nasdaq Composite Average was feeling love in the form of a 200-plus-point triumph.
You can attribute part of that to positive earnings announcements from
Microsoft was the biggie. The software and applications titan reported
stellar earnings last night after the close and had its earnings per share estimates upped by
. The company was
Dow favorite, adding 60 points of upside to the index.
Speaking of Dow favorites, the lately downtrodden
was added 47 points to the index. Yesterday, the stock had suffered after its merger mate,
, posted disappointing earnings. Financials were being helped by economic data released today that showed that the U.S. trade deficit fell more than anticipated in August.
Telecoms weren't doing so well yesterday, but thanks to
Nokia's great earnings,
all poped today.
was up 24.1%, or $8.88, to $45.75. The stock posted
earnings in line with estimates, but cautioned that fourth-quarter earnings would be flat.
was up 6.7% with a boost from an
upgrade to buy from outperform and a
upgrade of EPS estimates for 2000 and 2001.
fell 11.5% after it reported
revenue growth less than what some had hoped for -- even though the company's earnings came in above estimates.
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ended a licensing agreement with
involving an altered form of its antidepressant Prozac was hurting the stock today. The
American Stock Exchange Pharmaceutical Index
was hurting in sympathy, lately down 1.7%.
Philadelphia Stock Exchange Computer Box Maker Index
was up 6.4%, with all components save
Investors weren't looking for the safety of gold today. The
Philadelphia Stock Exchange Gold & Silver Index
was off 0.5%.
The semiconductors rebounded nicely following Nokia's news, as it bodes well for chip demand, something analysts have been concerned about for months. The
Philadelphia Stock Exchange Semiconductor Index
was lately up 17.1%. The index has been backing and filling, but trending heavily downward, since early September.
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Following yesterday's erratic trading, the bond market was rallying today. The bond market has been taking its tone from the equity market, as investors, sensing fear in stocks, move to the relative safety of bonds. Greater confidence in riskier assets, such as stocks, pushes people away from bonds.
The benchmark 10-year
Treasury note was lately at 100 22/32, up 2/32, and yielding 5.657%.
Treasury bondwas 2/32 lower, trading at 106 31/32 and yielding 5.757%
However, the market has reacted favorably to today's economic data and a speech by
Alan Greenspan, who took a constructive tone in his speech about the
Philadelphia Fed Index
) for October fell to -3.8 after a rise of 8.2 in September. The index was much weaker than expected and clearly suggests slowing economic performance.
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