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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







America Online






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

Goldman Sachs


Merrill Lynch

. The company was


Dow favorite, adding 60 points of upside to the index.

Speaking of Dow favorites, the lately downtrodden

J.P. Morgan


was added 47 points to the index. Yesterday, the stock had suffered after its merger mate,

Chase Manhattan


, 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.

Texas Instruments


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.


Sun Microsystems


was up 6.7% with a boost from an

ABN Amro

upgrade to buy from outperform and a

Bear Stearns

upgrade of EPS estimates for 2000 and 2001.

Nasdaq component

Extreme Networks


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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Sector Watch

News that

Eli Lilly


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






being rewarded.

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%.

The 30-year

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

Fed Chairman

Alan Greenspan, who took a constructive tone in his speech about the

new economy.


Philadelphia Fed Index


definition |

chart |


) 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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