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A day after the

Federal Reserve jolted investors out of their seats with an aggressive interest rate cut, the major stock market averages were settling back down to normalcy.

After skyrocketing 400 points yesterday, the

Dow Jones Industrial Average fell more than 50 points after the opening bell and then moved into dance mode, tangoing between positive and negative territory. Among the stocks dragging on the index was



, which soared 21% yesterday after giving positive guidance about it second half of the year. Intel, like most stocks yesterday, was also boosted by news of the rate cut. The semiconductor bellwether was lately down 1.3% to $30.86.



was doing its part to help the Dow hold on to yesterday's heady gains. Big Blue was jumping 6.4% to $113.31 on news the computer giant's earnings were

in line with analyst expectations and a positive outlook for the rest of this year. It was the most active stock on the

New York Stock Exchange.

The Wall Street community's reaction to Big Blue's news was positive. And in addition to IBM, analysts issued bullish reports this morning on a host of big tech names, many of which reported encouraging earnings news since the closing bell yesterday. Analysts turn their charm on

Siebel Systems






Advanced Micro Devices


, and



, saying that they expect these companies to see improvement in the second-half of the year. All these stocks were gaining. wrote separate stories on

Advanced Micro Devices,

Siebel and


So much of the most recent earnings news has been interpreted positively because companies have hinted the rest of the year will get better. Among the bullish investors, that notion has inspired a deeper belief over the past week and a half that the worst is over for this troubled stock market -- that, dare they say, the market has reached bottom. But the recent rally is not without its skeptics, namely those who point out that corporate and economic fundamentals have not yet improved.

Since touching a low of 9100 on March 23, the Dow is up 14% -- and it is once again moving in the direction of 11,000. The

Nasdaq Composite Index is ahead 26% since dropping to 1638 on April 4. Both are still significantly off their all-time highs hit last year.

In recent trading, the Nasdaq was trading ahead more than 40 points to 2122. And investors are watching closely to see if the market can hold onto yesterday's advances.

took a look at how rate-cut rallies

tend to hold up.

Semiconductor stocks, considered a bellwether group for the tech-measure, were rising. So too were Internet and computer issues. Chip stocks have been on fire since earlier this month, when an influential analyst -- Jonathan Joseph at

Salomon Smith Barney

-- called a bottom for the sector. Drug and cyclical stocks were dipping.

Investors await earnings news from key technology companies today, including:










PMC Sierra



Sun Microsystems


, and