Publish date:

Nasdaq, Russell Finish Strong as Dow, S&P Back Off

The

Nasdaq Composite Index

outperformed the rest of the market's major barometers today, surging almost 2%, as the stock market continued to steam ahead while the Treasury market suffered huge losses.

The Nasdaq Comp rose 35.28 to 1823.71. The small-cap

Russell 2000

advanced 5.40, or 1.4%, to 392.96. The blue-chip

Dow Jones Industrial Average

gained 76.99, or 0.9% to 8783.14 while the

S&P 500

jumped 7.84, or 0.7%, to 1118.68.

All of those indices closed well off their best levels of the day. The Dow peaked at 8854.45, up 148.30 points from yesterday's close.

Stocks gained on relief from midterm election results, which make the possibility of

President Clinton's

being removed from office quite remote. Stocks rallied also on the heels of big overseas gains.

The 30-year bond fell 1 23/32 to 102 17/32, yielding 5.33%. Strength in the stock market and a Treasury arena under supply pressure pounded government issues.

On the Big Board, 2,049 advancers led 1,004 decliners on 862 million shares.

Nasdaq Stock Market

winners beat losers 2,483 to 1,633 on 1.05 billion shares.

On the NYSE, 88 issues hit new 52-week highs while 7 hit new lows. On the Nasdaq, 77 issues were at new highs while 42 reached new lows.

Most active on the Big Board was

Iomega

(IOM)

, up 1, or 14.3%, to 8 on 23.3 million shares. On the Nasdaq,

Ciena

(CIEN) - Get Ciena Corporation Report

led the most actives. It fell 5/8 to 17 11/16 on 27.5 million shares.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup

.

2:58 p.m.: Rally Falters as Session Hits Home Stretch

The

Nasdaq Composite Index

continued to pace the market, but all of the major indices were well off their session highs as the final hour approached.

The Nasdaq Comp was lately up 25 to 1814. The

Dow Jones Industrial Average

was up 55 to 8761, while the

S&P 500

was up 4 to 1115. The small-cap

Russell 2000

was up 4 to 391. (The selling accelerated after these figures were compiled, leaving the Dow up just 11 and the S&P up less than 1.)

The Dow earlier was up as much as 148.30 to 8854.45.

"The mood is pretty damn good," said Jay Meagrow, vice president of trading at

McDonald

in Cleveland, when the market was much higher than it currently is.

That good mood was nowhere to be found in the Treasury market, however. The 30-year bond was lately getting pummeled, down 1 15/32 to 102 25/32, yielding 5.32%, in the wake of today's $12 billion 10-year note auction. The notes were sold at a yield of 4.825% and were met with less-than-robust demand.

Traders said the current conditions in the market are the exact opposite of just a few weeks ago, when it looked like there was nowhere for stocks to go but down. But they said the market will likely ease off its torrid upward trajectory relatively soon.

Meagrow said he expects the market to soften and "take a break" within the next week.

He attributed a lot of today's gains to the midterm election results. The elections bolstered the market's confidence that the prospect of

President Clinton

being impeached are very remote.

Leading the market higher today were tech stocks, financials and gold mining issues. Gold mining stocks were flying. The

Philadelphia Stock Exchange Gold and Silver Index

was up lately more than 7%.

Pacing the downside were phone stocks and drug issues.

On the economic front, the

Federal Reserve

recently released its

Beige Book

report, which said the U.S. economy was losing some of its luster.

Meagrow said it was pretty busy all morning, but he added volume is still not all that outstanding.

On the

New York Stock Exchange

, 1,964 advancers were leading 1,051 decliners on 668 million shares. Nasdaq winners were beating losers 2,408 to 1,615 on 831 million shares.

On the NYSE, 79 issues were at new 52-week highs while 6 were at new lows. On the Nasdaq, 71 issues were at new highs while new lows totaled 37.

Most active on the Big Board was

Iomega

(IOM)

. The stock was up 7/8, or 12.5%, to 7 7/8 on 20.5 million shares. On the Nasdaq, rumored takeover target

Ciena

(CIEN) - Get Ciena Corporation Report

led the most actives, with 25.3 million shares changing hands. The stock was down 5/8 to 17 11/16.

1:56 p.m.: Nasdaq Remains in Command as Rally Stays the Course

The

Nasdaq Composite Index

has paced a surging stock market in a broad-based rally.

The Nasdaq Comp was up 32 to 1821. Meanwhile, the

Dow Jones Industrial Average

was up 107 to 8814. Powering the Dow was

American Express

(AXP) - Get American Express Company Report

, which was lately up 3 3/8 to 93 7/8.

The

S&P 500

was up 11 to 1122. The small-cap

Russell 2000

was up 5 to 393.

In the Treasury market, the plummeting 30-year bond was lately down 1 20/32 to 102 20/32, yielding 5.32%.

Stocks gained on relief that impeachment of

President Clinton

is less likely in the wake of yesterday's midterm elections, and on the heels of sharp gains in foreign equity markets.

On the

New York Stock Exchange

, 2,167 advancers were beating 832 decliners on 555 million shares.

Nasdaq Stock Market

winners were beating losers 2,487 to 1,396 on 693 million shares.

On the NYSE, 78 issues were at new 52-week highs while 6 were at new lows. On the Nasdaq, 67 issues were at new highs while new lows totaled 32.

Technology issues across the board were sharply higher. Financials, gold mining, and transportation issues, to name a few, were standouts on the upside.

Most active on the Big Board was

Iomega

(IOM)

. The stock was up 1 3/16, or 17%, to 8 1/4 on 17.2 million shares. On the Nasdaq,

Ciena

(CIEN) - Get Ciena Corporation Report

led the most actives, with 23.7 million shares changing hands. The stock was down 11/16 to 17 5/8.

Shortly, the market will get another glimpse at economic conditions in the U.S. when the

Federal Reserve

releases its

Beige Book

report.

Focus: Today's Pink Slips

Amid the hoopla among investors and the general fattening of portfolios around the globe today, a few companies announced layoffs and likely job cuts.

International Paper

(IP) - Get International Paper Company (IP) Report

announced its "printing papers realignment program" which will result in the slashing of more than 800 jobs. The job cuts, which were included in its recent third-quarter earnings report, will hit paper mills in Alabama, New York, Pennsylvania and Louisiana. Shares of the company were down 7/16 to 45 1/2.

Cadence

(CDN)

set a fourth-quarter restructuring charge of $36 million to cover costs associated with cutting 560 jobs, or about 12% of its workforce. Cadence expects to reduce its cost structure by about $8 million in the fourth quarter and by approximately $60 million in fiscal 1999. Cadence skyrocketed 4 1/8, or 20.6%, to 24 1/8 in the wake of the news.

Meanwhile,

USX-U.S. Steel Group

(X) - Get United States Steel Corporation Report

said today it will curtail operations this month at its Fairless Works near Philadelphia by about 70%. The move was triggered by the sharp fall in orders brought on by record levels of steel imports reaching the U.S. marketplace, the company said. The plant employs about 850 workers and the company said many of them will either be laid off or assigned to lower paying jobs as a result of the plant slowdown. The stock was lately up 1 1/8 to 26 1/2.

12:58 p.m.: Midday Musings: Election Boost, Sidelined Cash Have Wall Street Zooming

12:13 p.m.: More Postelection Rallying for Market

The postelection rally has continued to roll on as the market's major barometers were lately modestly off their sharp session highs.

The

Dow Jones Industrial Average

was up 127 to 8833. The

S&P 500

was up 15 to 1126. The

Nasdaq Composite Index

was up 34 to 1823, while the small-cap

Russell 2000

was up 5 to 393.

Also helping in today's run-up were sharp stock-market gains in overseas.

The stock market's gain was the Treasury market's loss. The 30-year bond was lately down 19/32 to 103 21/32, yielding 5.256%.

On the

TheStreet Recommends

New York Stock Exchange

, 2,138 advancers were leading 674 decliners on 351 million shares.

Nasdaq Stock Market

winners were beating losers 2,334 to 1,170 on 451 million shares.

On the NYSE, 66 issues were at new 52-week highs, while 5 were at new lows. On the Nasdaq, 56 issues were at new highs, while new lows totaled 22.

Most active on the Big Board was

Iomega

(IOM)

. It was up 11/16, or 9.8%, to 7 11/16 on 10 million shares. Iomega surged yesterday on news that

SyQuest Technology

(SYQT)

, its chief competitor, has suspended operations and was considering alternatives, including filing for Chapter 11.

On the Nasdaq,

Ciena

(

CIEN

:Nasdaq) again led the most actives. It was lately up 1/16 to 18 5/16 on 20 million shares.

Tech Focus

Among the technology indices today, the

Philadelphia Stock Exchange Semiconductor Index

was leading the tech arena higher and was lately up nearly 4%. Elsewhere, the

Morgan Stanley High-Tech 35

index was up 2.9%, while the

American Stock Exchange Inter@ctive Week Internet Index

was up 2.6%.

Meanwhile, the market will be closely eyeing

Cisco's

(CSCO) - Get Cisco Systems, Inc. Report

earnings report after the close today.

First Call's

25-analyst consensus estimate is for earnings of 33 cents a share. Cisco was up lately, gaining 2 to 65 3/8.

Among the more popular Internet stocks,

America Online

(AOL)

was up 6 1/4 to 138 3/4;

Yahoo!

(YHOO)

was up 5 5/16 to 147 1/2; and

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

was up 3 3/4 to 130 1/16.

In the Newsletters

Speaking of Cisco, the company yesterday moved to take a step forward in voice, video and data integration by adding more

Quality of Service

functionality in the latest version of its router and switch operating software, according to a story on

Computer Reseller News'

Web site.

Meanwhile, SyQuest is the subject of a story on

Computerworld's

Web site, where it talks about the firm's troubles. Yesterday, trading in the stock was halted for news pending, at a last sale price of 11/32, according to Nasdaq. According to the

Computerworld

article, yesterday no one answered the phone at SyQuest's Fremont, Calif., headquarters, and the company's Web site didn't appear to be responding.

10:59 a.m.: Postelection Rally Rolls On

The stock market is feeling about as good as Minnesota Gov.-elect

Jesse "The Mind" Ventura

must be this morning as the market rallied in the wake of midterm elections and sizable gains overseas.

The former pro-wrestler better known as Jesse "The Body" Ventura won Minnesota's gubernatorial race in a huge upset yesterday as the Reform Party candidate.

The

Dow Jones Industrial Average

was up 119 to 8825. Leading the Dow higher was

American Express

(AXP) - Get American Express Company Report

, which was lately up 3 to 93 7/16. Only four Dow stocks were in the red.

"It's amazing we've run up 1300 points," said Scott Curtis, senior equity trader at

Brown Brothers Harriman

, speaking of the Dow.

The

S&P 500

was up 15 to 1126. The

Nasdaq Composite Index

was up 30 to 1819. The

Russell 2000

was up 5 to 392.

As for the rest of the session, much of the market's attention will fall on the results of the 10-year note auction and the

Federal Reserve's

Beige Book report, Curtis said.

Curtis added that the market will be closely watching

Cisco's

(CSCO) - Get Cisco Systems, Inc. Report

earnings number after the close today.

First Call's

25-analyst consensus estimate calls for earnings of 33 cents a share.

The rally today has been attributed to relief over yesterday's election results, which decreased dramatically the odds

President Clinton

will be impeached. Overseas markets rallied handsomely, with Japan's

Nikkei 225

surging more than 4%.

Meanwhile, the 30-year Treasury bond was down 24/32 to 103 16/32, yielding 5.27%.

In stocks, technology and financial issues were among the leaders. Tech stocks are soaring, with big gains seen by semiconductor and Internet issues. Highflier

Yahoo!

(YHOO)

was up 6 to 148 1/8.

Financials are surging too, led by brokerage stocks, with banks following closely behind with their sharp gains.

Among the S&P industry groups, consumer cyclicals, financials and transportation stocks were gaining sharply.

Meanwhile, oil-service and phone indices were in the red.

On the

New York Stock Exchange

, 2,091 advancers were leading 584 decliners on 235 million shares.

Nasdaq Stock Market

winners were beating losers 2,186 to 1,035 on 308 million shares.

On the NYSE, 53 issues were at new 52-week highs while 4 were at new lows. On the Nasdaq, 43 issues were at new highs while new lows totaled 15.

9:56 a.m.: Stocks Blast Higher at the Open

Stocks rallied at the open on the heels of huge gains in Tokyo and on relief over midterm election results in the U.S., which are expected to slash the odds of impeachment of

President Clinton

dramatically.

The

Dow Jones Industrial Average

was up 86 to 8792. The

S&P 500

was up 12 to 1123, while the

Nasdaq Composite Index

was up 25 to 1813. The

Russell 2000

was up 4 to 391.

The good news for the stock market has helped pound bonds so far. The 30-year Treasury bond was lately down 24/32 to 103 16/32, yielding 5.27%.

Most Up at Open -- NYSE

America Online (AOL) , up 4 3/8 to 136 7/8

: AOL's

Digital City

and

Netscape

(NSCP)

announced the debut of Digital City's local content and community guides on Netscape's

Netcenter

portal site.

Most Up at Open -- Nasdaq

Yahoo! (YHOO) , up 5 1/2 to 147 5/8

.

Most Down at Open -- NYSE

First Data (FDC) - Get First Data Corporation Class A Report, down 15/16 to 23

.

Most Down at Open -- Nasdaq

Phototronics (PLAB) - Get Photronics, Inc. Report, down 3 11/16 to 16 7/8

: The company warned fourth-quarter earnings are expected to fall short of analysts' expectations.