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April 28, 2000

Market Data as of Close, 4/28/00:

o Dow Jones Industrial Average: 10,745.39 down 142.71, -1.31%

o Nasdaq Composite Index: 3,822.40 up 48.37, 1.28%

o S&P 500: 1,450.27 down 14.65, -1.00%

o TSC Internet: 886.38 up 29.41, 3.43%

o Russell 2000: 502.41 up 7.83, 1.58%

o 30-Year Treasury: 103 28/32 up 8/32, yield 5.953%

In Today's Bulletin:

o Midday Musings: Tech Strength Continues at Midday; Hobbled Dow Still Struggling
o Wrong! Rear Echelon Revelations: When the Toughest Get Going

Catch "" on Fox News Channel Saturdays at 10 a.m. and 6 p.m. and Sundays at 10 a.m. (ET). Scott Bleier, Chief Investment Strategist at Prime Charter, will be our guest April 29, 30.

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Midday Musings: Tech Strength Continues at Midday; Hobbled Dow Still Struggling


Kristen French

Staff Reporter

4/28/00 1:18 PM ETThe

Dow Jones Industrial Average

continued to limp downward after yesterday's hot inflation data broke its legs, but the

Nasdaq Composite Index

was still bucking upward in relatively thin trade.

Investors began fleeing the so-called "inflation-sensitive" old-economy stocks yesterday as they sought cover in "high-growth" tech stocks. So far that trend has held.

Most market observers said the fact that the Nasdaq has been able to hold its head high amid the recent flutter of bad news is very impressive and bodes well, at least for the short term.

That bad news includes a report earlier today that George Soros' firm is losing

Stanley Druckenmiller


Nicholos Roditi

, which some thought might mean some heavy selling in tech.

Druckenmiller ran Soros' $8.2 billion

Quantum Fund

and Roditi ran the $1.2 billion

Quota Fund

. The two managers had bet heavily on technology names starting in the latter half of 1999. The recent selloff in tech names hurt the fund badly -- it reportedly lost $3 billion in capitalization in the last six weeks.

For more on this

story, take a look at the coverage out of the

joint newsroom.

One stock, in particular, was really singing the blues today.

In the last hour, a federal judge in New York ruled that



violated copyright laws by creating a database of music available to be downloaded off the Web. The ruling has hammered the stock and it was recently down 4 5/8, or 40%, to 7.

"For a Friday, going into a weekend, and having digested a lot of bad news, it's very impressive that the market has been able to hang in this tough so far," said Ned Collins, executive vice president of U.S. stocks at

Daiwa Securities America


But no one wants to say that the market has moved entirely out of the woods yet as there may be more bad news to be weathered.

"Next week everyone will be keeping an eye on the April employment data. Market players are sitting boxed in by that data. We may see activity slow down in the afternoon after the harrowing week we've had. And we could see tech back-and-fill a little bit more," said Bryan Piskorowski, market analyst at

Prudential Securities


Financials and insurance stocks were still taking blows after falling hard on the inflation news yesterday. The

American Stock Exchange Broker/Dealer Index

was down 1.4%, the

Philadelphia Stock Exchange KBW/Bank Index

was down 2.2% and the

S&P Insurance Index

was 1.3.

Leading financials down around mid-session were


(C) - Get Citigroup Inc. Report

, down 2.6, and

American Express

(AXP) - Get American Express Company Report

, down 0.9%.

Fellow Dow industrials components

J.P. Morgan

(JPM) - Get JPMorgan Chase & Co. Report

was down 1.9% and

Chase Manhattan


dropped 1.4%.

Insurance giant

American International Group

(AIG) - Get American International Group, Inc. Report

was off 1.5%.

On the NYSE,

Three-Five Systems


was off 8% and

Mettler-Toledo Int'l

(MTD) - Get Mettler-Toledo International Inc. Report

off 14.6%, were posting the biggest losses.

The Nasdaq was getting extra bounce, meanwhile, from

Aether Systems


, and


(RMBS) - Get Rambus Inc. Report


Rambus' gain was also propelling the

Philadelphia Stock Exchange Semiconductor Index

up 3.2%.

Technology bellwether


(INTC) - Get Intel Corporation Report

was up 2.1%, after the chip giant reported Thursday it is accelerating its efforts to promote the growth of electronic commerce. Other chip makers, such as

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report


LSI Logic

(LSI) - Get Life Storage, Inc. Report

were riding Intel's wave.



(MSFT) - Get Microsoft Corporation Report

was down 1.4% ahead of the release of the government's proposal for splitting up the company after the market closes this afternoon.

Consumer retail stocks were also in trouble, as were drug stocks. And utility stocks were down after a strong run up in the last few weeks. The

American Stock Exchange Pharmaceutical Index

was off 1.7%, and the

Dow Jones Utility Average

was off 1.3%.

The Internet Sector

index was up 35.48 to 892.45, once again, boosted by strength in







Market Internals

Breadth was narrowly mixed on the NYSE and positive on the Nasdaq, while volume was relatively light on both.

New York Stock Exchange:

1,424 advancers, 1,351 decliners, 553 million shares. 41 new 52-week highs, 30 new lows.

Nasdaq Stock Market:

2,200 advancers, 1,634 decliners, 882 million shares. 33 new highs, 60 new lows.

Wrong! Rear Echelon Revelations: When the Toughest Get Going


James J. Cramer

4/28/00 8:56 AM ET


Julian Robertson

. Now

Stanley Druckenmiller

? And you think running money is easy? This morning we learned of the departure of Stanley Druckenmiller from the

Soros Fund

, where he was the chief investment strategist. The departure comes after Soros suffered some heavyweight losses in this market.

Druckenmiller is no ordinary fund manager. I met Stanley 14 years ago when he was the star at


, when that fund family was hot as a pistol.

He is one of the greats of this business, perceptive, intelligent, honest and ahead of the game at all times. When he spoke, you listened. All he did in the intervening years was get better and better and better. He is someone my wife, skeptical beyond belief, always felt had a fabulous call on the tape. If she heard that he liked the tape, and she didn't, she might change her mind.

He came on

Ron Insana's

great show a few years back and talked about something he did wrong. I sat there in awe that he would have the confidence to tell the truth like that. He's an awesome money manager.

The fact that Druckenmiller's near-term results have been subpar is a sharp reminder of how hard this market has gotten.

It is a wake-up call for those who would beat themselves up over the vicissitudes of this tape. It the tape itself and not you that is so confused. It would not surprise me if some of the craziness lately in the Nasdaq is related to the unwinding of some Soros' positions in that market.

As shook up as I was about the losses Julian Robetson experienced, I am even more sobered by what has happened at Soros. The takeaway here is that the game has gotten tougher for the professionals running billions than it has



Please, please be careful out there. When the toughest get going, you can't be too sure or cocky or arrogant about anything.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

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