All of us.
Most major indices set records in this euphoric day of trading, including the
Nasdaq Composite Index
, which breached 4000 midday for the first time ever. It closed about 40 points below that number, on this, the last day before the three-day holiday break. The
Dow Jones Industrial Average
also closed at record levels, the Dow doing so for the first time in months.
The Nasdaq traded as high as 4001.63 just after noon EST but couldn't hold onto its millennial surge, trailing off in the last hour of the day to finish up 32.14 (which at one time, say, two months ago, was considered a solid gain for the Comp), or 0.8%, to a record 3969.44. That's the Comp's 29th record in the past 39 trading days.
The Dow zoomed to an intraday high of 11,443.07 and closed with a still-remarkable gain of 202.16, or 1.8%, to 11,405.76. That record close is the blue-chip proxy's first since
Among Dow components,
Johnson & Johnson
closed up 4, or 4.4%, to 95 9/16;
was up 5 11/16, or 5.3%, to 112 5/8;
rose 3 7/8, or 2.4%, to 159 1/4; and
rose 2 1/16, or 3.6%, to 59 9/16.
The S&P peaked intraday at 1461.44 and finished with a leap of 22.35, or 1.6%, to 1458.34.
Market internals were much better than in the Nasdaq's frenzied surge Tuesday after the
left interest rates unchanged. But volume was relatively thin today, not unexpectedly, and market participants were somewhat dismissive of the gains for that reason.
Today's Market: Join the discussion on
"I wish we were doing it on a billion instead of 500 million shares," said Arthur Hogan, chief market analyst at
. "This is a week unto itself. You have to X this out in terms of your long-term strategy. It's an aberration, and these days before a holiday tend to be aberrations. You don't have the full attention of investors today."
Hogan did like the market's breadth, though. The advance-decline line came out favorable on the
New York Stock Exchange
, 1,908 to 1,139, on 729 million shares. Advancers beat out decliners on the Nasdaq also, 2,223 to 1,968, on 1.26 billion shares.
A total of 103 new 52-week highs were made on the NYSE, compared with 233 new lows. The Nasdaq showed 278 new highs and 129 new lows.
Almost every sector participated today. The
American Stock Exchange Pharmaceutical Index
gained 2.6%; the
Morgan Stanley Cyclical Index
rose 2.2%; the
Philadelphia Stock Exchange Oil Service Index
was up 4.6%, and the
Philadelphia Stock Exchange Forest & Paper Products Index
Internet Stocks Left Behind Today
Oddly, one of the sectors that
join in today's collective celebration was the Internet and its representative bellwether names.
TheStreet.com Internet Sector
index slumped 19.58, or 1.7%, to 1128.52 today.
ran into a wall of resistance today, losing 7.9%, or 7 3/4, to 90 on a split-adjusted basis.
also lost ground today, closing down 4 13/16 to 270 13/16.
was a loser, too, down 7 3/16, or 4.8%, to 142 5/16, and
shed 19 13/16, or 13%, to 133 9/16.
Maybe that sector was the one paying attention to another dreary day in the bond market. Treasuries, which bounced higher in the morning, sputtered through an abbreviated session and ended the day down again, off 14/32 to yield 6.49%. That's the highest yield of the year. Contrary to expectations for an end-of-year rally, the bond market has suffered in December as much as in any other month this year.
But continued inflows into stocks, and stock funds, have allowed the market to ignore rising interest rates. Some believe that rising interest rates will assert themselves as a force in the stock market again, but it won't be an issue until next year. One can sense from talking to strategists
"One day, the bond is going to cause a problem," said Gary Kaltbaum, chief technical analyst at
in Boca Raton, Fla. "But we're riding what the market tells us. There's no sign saying that this is going let up. You have stocks that have gone parabolic without taking a breath. Someday this will end, but we're not good enough to know when."
Among the soaring parabolic stocks was
, whose 3-for-1 split was effective after today's close. It jumped 48 3/4, or 8.9%, to an all-time high of 598.
posted a gigantic percentage gain, rising 38, or 19.8%, to 231.
rose 7 1/4 to 34 5/16, and
gained 1 11/16 to close at 106 11/16.
was the Nasdaq's most actively traded stock, rising 2 7/16 to 52 11/16 on 41.5 million shares.
, a biotech company, was among the Big Board's big movers, rising 32 7/8, or 29.6%, to 144.
rose 23% to 15 15/16 on news that
chose the company's Pegasus rocket to launch two satellites.
A close above 4000 for Nasdaq will have to wait. Hogan doesn't think it'll be long.
"We'll see more of this as next week wears on," he said. "The classic winners will be doing much better. Stocks will get window-dressed even more, and there'll be more bipolarization on lackluster volume."
Among other indices, the
Dow Jones Utilities Average
closed the day up 3.79, or 1.4%, to 281.21, while the
Dow Jones Transportation Average
was up 48.96, or 1.7%, to 2887.70. The
American Stock Exchange Composite Index
rose 6.85, or 0.8%, to an all-time high of 846.28.
For the week, the Dow rose 1.3%, the S&P gained 2.6%, the Nasdaq surged 5.8%, the Russell jumped 3.5%, the DOT added 1.4%, the transports fell 1.1%, the utilities advanced 2.5% and the Amex Composite improved 2%.
Elsewhere in North American equities, the
Toronto Stock Exchange 300
gained 105.02, or 1.3%, to 8367.2 and the
Mexican Stock Exchange IPC Index
rose 98.5,or 1.4%, to 6933.78.
Thursday's Company Report
Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.
Commerce One soared before, during and after it announced a 3-for-1 split of its common stock. The stock split will be effected as a stock dividend on Dec. 23 to shareholders of record at the close of business on December 3, 1999. Commerce One, the top Nasdaq gainer, closed up 48 3/4, or 8.9%, to a record 598, after bouncing off an intraday trading high of 625 1/2. The stock has been on a tear since Monday when David Garrity of
Dresdner Kleinwort Benson
in New York slapped a price target of 1,000 on the stock.
Mergers, acquisitions and joint ventures
Citicorp International Finance Corp.
has agreed to take a 20% stake in the company. The interest is valued at roughly $40 million. Citigroup gained 1 to 56.
climbed 4 3/8, or 8.6%, to 53 1/8 after it agreed to buy the 45% stake in cable operator
Comcast MHCP Holdings
owned by the
California Public Employees' Retirement Systems
for $750 million.
gained 8 3/8, or 8.7%, to 104 15/16 after it said it dropped an $8.31 billion bid for
in a filing with the
Securities and Exchange Commission
. Nextel cited "significant" developments in NextWave's bankruptcy case.
This year's Nasdaq star,
, wasn't as bright as usual today, losing 19 1/8 to 466 1/2 today. (Of course for this highflying stock, it's a mere 4% drop). After yesterday's close, Qualcomm announced that Japan-based
has agreed to purchase Qualcomm's consumer phone division for an undisclosed amount. Qualcomm said the sale would result in a onetime pretax charge of roughly $30 million in the first-quarter of fiscal 2000.
The deal calls for Kyocera to acquire Qualcomm's wireless phone businesses that use
Code Division Multiple Access
as well as its phone inventory, manufacturing equipment and customer orders. Kyocera also entered a five-year agreement to buy Qualcomm's CDMA chipsets and system software. The deal is set for completion by the end of February 2000.
upped its price target on Qualcomm to 520 from 450.
Banc of America Securities
lifted its 2000 earnings estimates to $4.00 from $3.85 per share.
gained 1 1/4 to 41 3/4 after it said it has agreed to partnerships with
to modernize Swiss telecommunications. Siemens and Cisco are set to begin work as early as January. Cisco added 1 15/16 to 104 7/16.
Lehman Brothers said it "slightly reduced" its position in Cisco and put the proceeds into
in its U.S. strategy portfolio for 2000. Applied Materials rose 7/16 to 121 5/8.
said it holds the right to up its $1.9 billion offer for Ireland's
but said it is not currently considering an increase. Shares of Esat rose 1/8 to 90. Yesterday, Telenor raised its offer to Esat by $300 million.
gained 2 3/16 to 85 1/8 after it said a Delaware state court has set a Jan.10 court date to review its motion to block
attempt to replace Warner-Lambert's board. The court date marks a victory for Warner-Lambert in the heated merger battle with Pfizer. Shares of Pfizer inched up 5/16 to 34 1/16.
The battle began after Pfizer launched a hostile bid for Warner-Lambert despite its plans to link with
American Home Products
. AHP ended the day down 1 at 39..
gained 1/2 to 49 after CEO Chris Gent said the takeover bid for
should be considered final, and there are no plans to launch a sweetened offer. Gent said that only a competing bid from another company would prompt Vodafone to consider upping its bid.
Earnings/revenue reports and previews
dropped 2 1/16 to 73 15/16 after it posted first-quarter earnings of $1.19 a share after yesterday's close, beating the 23-analyst estimate of 85 cents and the year-ago 19-cent loss.
Deutsche Banc Alex. Brown
upped its 2000 earnings estimate to $3.79 from $1.80.
climbed 1 1/4, or 8.4%, to 16 1/16 after it said its same-store sales for the holiday shopping season have reached "double-digit" growth so far. Last year, December sales rose 8%. CEO Richard Thalheimer said Web sales have risen six-fold in the period.
Offerings and stock actions
inched up 1/4, or 5.7%, 4 11/16 after it said it has set a share buyback of up to 10% of its common stock.
climbed 3 3/16, or 20.2%, to 19 after it said it retained
Deutsche Banc Alex. Brown
to help it explore strategic alternatives.
Morgan Stanley Dean Witter
upped its rating on
to outperform from neutral and set a price target of 48. Boeing gained 1 13/16 to 41 3/16.
upped its rating on
to near-term accumulate from neutral. Brightpoint gained 3 7/16, or 30.2%, to 14 7/8.
initiated coverage of
with a buy rating and set a price target between 200 to 205. Brocade bounced up 7 7/16 to 158 1/2.
US Bancorp Piper Jaffray
fiscal first-quarter EPS estimate to 35 cents from 25 cents and raised its price target to a range of 45 to 50. CDO lost 2 to 38 1/2.
Morgan Stanley Dean Witter
raised it price target on
to 110 from 90. Home Depot gained 1 3/16 to 97 1/2.
Lehman Brothers raised
to buy from outperform and raised its price target to 117 from 73. Shares popped 9 1/4, or 10.8%, to 95 5/16.
Warburg Dillon Read
cut its fiscal 2000 loss estimate on
to 74 cents a share to $1.16 a share and upped its fiscal 1999 loss estimate to $1.52 a share from 50 cents a share. Imclone fell 1 7/8 to 39.
Merrill Lynch upped shares of
to near-term accumulate from neutral. Inktomi gained 15 1/4, or 8.7%, to 191 1/2.
Warburg Dillon Read upped its rating on
to buy and set a price target of 31. Shares gained 3/4 to 24 5/8.
Piper Jaffray cut its fourth-quarter estimate on
Research in Motion
to 6 cents a share from 7 cents and fiscal 2001 estimate to 45 cents from 50 cents. Shares rose 3/4 to 44 1/4.
Credit Suisse First Boston
rolled out coverage of
with a hold rating. Rockwell moved up 13/16 to 48 5/8.
initiated coverage of
with an attractive rating and set a price target of 15. Semco shares inched up 1/16 to 12 1/4.
Merrill Lynch raised its rating on
to near-term buy from accumulate. Tandy tacked on 3 5/8, or 8.5%, to 46 1/8.
Goldman Sachs cut its 2000 earnings estimate on
to 85 cents a share from $1.00. Tektronix shrugged off the news, and climbed 3/4 to 36 5/8.
inched up 5/8 to 108 5/8 after
The Wall Street Journal
reported it has filed a lawsuit against competitor
, claiming that EMC infringed upon a patent agreement and committed fraud by moving the patents to a shell company.
reported that EMC said the proceedings were frivolous and it had fulfilled the agreement. EMC gained 1 7/8 to 101 1/8 despite the news.
slipped 1/16 to 117 7/16 after it said late yesterday that it has tapped company executive John Connors to be its new CFO. Connors is replacing
, who stepped down to accept the CEO position at Vancouver-based
. This morning, First Boston maintained its strong buy rating on the stock, saying it feels Maffei's resignation would not have "any meaningful impact" on the company. PaineWebber raised its price target on Microsoft to 150.
For more on the changing of the financial guard at Microsoft, take a look at the
story written last evening by
gained 3, or 23.2%, to 15 15/16 after it said its rocket was chosen by
to launch two satellites.
As originally published, this story contained an error. Please see
Corrections and Clarifications.