After suffering a
Joe Theismann-like injury
yesterday, traders, analysts and money managers hobbled home wondering exactly what was going to be the fate of technology, Internet and drug stocks today, to name a few.
And in a reversal of some of the action yesterday, tech, Internet and drug stocks were beginning to heal themselves -- not without some stumbling and difficulty -- while cyclical, oil and oil-service issues declined after enjoying solid gains yesterday. Volume was heavy overall in choppy trading.
Nasdaq Composite Index
advanced 41, or 1.8%, to 2387.
Tech sector barometers were mostly higher. The
jumped 2.3%, the
Morgan Stanley High-Tech 35
added 1.4% and the
Philadelphia Stock Exchange Semiconductor Index
TheStreet.com Internet Sector
index surged 25, or 4.4%, to 586.
, was making up some of the ground it surrendered yesterday, up 7.3%. It was also most active on the
New York Stock Exchange
, with 26.9 million shares changing hands.
Meanwhile, a torrent of earnings reports has kept market participants busy today with scores of companies posting quarterly results. Looking ahead, tech titan
is expected to report earnings after the close. Mister Softee was up 1 3/16 to 82 3/16. Microsoft was most active on the
Nasdaq Stock Market
, with 30.4 million shares changing hands.
Dow Jones Industrial Average
slumped 24, or 0.2%, to 10,417.
weighed on the Dow the most and was down 5.3%.
wasn't helping, falling 2.5%, the second-biggest drag on the venerable average.
climbed 13, or 1%, to 1302, while the
added 2, or 0.4%, to 414.
Market internals, which have put smiles on the faces of many in the market lately, were negative. Despite the negative breadth, the broadening of the market of late has heartened many.
The market's upside potential will be limited if that broadening doesn't continue, said Bruce Bittles, market strategist at
in Nashville, Tenn.
On the Big Board, decliners were beating advancers 1,691 to 1,202 on 600 million shares. On the Nasdaq, losers were leading winners 1,949 to 1,761 on 685 million shares.
On the NYSE, new 52-week highs and lows were tied at 25. On the Nasdaq, 63 issues had set new lows while new highs totaled 13.
If the market continues to broaden, and interest rates stay benign, over the next six months, the Dow has a chance to advance another 8% to 10%, Bittles said. Small-caps and midcaps could do even better and could run up 20% to 25% over the same period, Bittles said.
From here, Bittles said the market will likely go higher, but "growth is over for a while."
"I think you've seen the highs in those stocks," Bittles said, adding that they're over-owned and have nowhere to go but south.
Others were also positive on the market overall going forward.
"I think the basic trend is still up," said Stephen Shobin, chief technical analyst at
The correction in tech and Internet stocks can't be ignored, said Shobin, adding that the recent action in these stocks was the market's "inimitable" way of saying the speculation was excessive.
Shobin said the market will probably be held back by tech and Internet stocks as they resolve their excesses. He said resolution of the excess could take "many, many months."
Some sectors reversed their course from yesterday.
Drug stocks, which got pounded yesterday, advanced. The
American Stock Exchange Pharmaceutical Index
Meanwhile, oil and oil-service stocks, which surged yesterday, were mixed today. The
Chicago Board Options Exchange Oil Index
slumped 3%. The
Philadelphia Stock Exchange Oil Service Index
was up 0.7%.
Meanwhile, the recently red-hot cyclicals were suffering sizable losses. The
Morgan Stanley Cyclical Index
was down 2.1%.
Paper stocks, which have been on a tear for a while, tumbled. The
Philadelphia Stock Exchange Forest and Paper Products Index
gave up 6.5%.
On the economic front, the
reported the trade deficit rose to $19.4 billion.
The 30-year Treasury bond lately was down 7/32 to 95 27/32, yielding 5.54%. (For more on the fixed-income market, see today's early
Shobin said the key point in the 30-year bond's yield is 5.72%. If the bond's yield closes above that, the yield will probably rise to 6.1%, Shobin said.
Among other indices, the
Dow Jones Utility Average
rallied 1.7%. The
American Stock Exchange Composite Index
rose 0.2%. The
Dow Jones Transportation Average
Tuesday's Midday Movers
With earnings reports, previews and warnings dominating individual company news, some stocks -- but certainly not most stocks -- were able to sneak out of this increasingly complex rotational market and respond simply: Good earnings make a stock go up; bad earnings make a stock go down.
was continuing yesterday's after-hours retreat and lately was plunging down 4 13/16, or 31.6%, to 10 7/16. Last night, the company posted first-quarter earnings of 30 cents a share, a penny shy of the 11-analyst
forecast but ahead of the year-ago 28 cents. Blaming longer sales cycles and Y2K concerns, Network said it expects to report lower revenue in the second quarter.
was up 2 5/8, or 8.6%, to 33 1/4 after recording third-quarter earnings of 41 cents a share, a penny above the seven-analyst prediction and ahead of the year-ago 37 cents. The company also announced a deal to provide AOL with content and related links from the Web sites of
Better Homes and Gardens
Ladies' Home Journal
was up 1 5/16 to 98 3/4 after setting a 2-for-1 stock split and reporting first-quarter earnings of 93 cents a share, beating the 16-analyst estimate by 3 cents and moving up from the year-ago 80 cents.
In other earnings news: