Investors found themselves in familiar territory at midday: worrying about interest rates, watching stocks fall but regularly find support, and seeking solace in oil and cyclical equity names. Several stock traders, meanwhile, said technology was holding itself together pretty well after five sessions of rousing rallying.
And the market strategists? Many were bored or on vacation. (Catch
reborn "Business Center" last night? We didn't know
"We're basically stuck in this trading range, looking for closure on the coming week about what
and his merry men will do," said Bryan Piskorowski, market analyst at
. "I think the concern is much more in what the commentary says than what the actual move is. Clearly, the easing
in 1998 wasn't a mistake, but people are considering the 25
-basis-point cut last December as a gimme, and so it's not that bad to give it back."
The trader expects a 25-basis-point hike in interest rates from the
Federal Open Market Committee's
meeting June 29-30 and said the inflation picture doesn't support a greater increase. "If something starts changing there, we'll see the bond vigilantes sell with reckless abandon," he added.
"My colleague Larry Wachtel said it best this morning," Piskorowski continued. "We do a good job getting over the big humps, but we find it hard when there's nothing to do and we're just sitting here. I'm impressed that tech is not giving back more of its gains. I think they're moving on expectations for good quarterly earnings. ... But this is still a very quick market, it's very choppy: yesterday's winners are today's losers and then tomorrow it could be yesterday's winners again. I mean, paper has moved a year and a half's worth. Part of the
recent buying is momentum, and it's not just the same old tech stocks."
Dow Jones Industrial Average
lately was losing 82, or 0.8%, to 10,640, near its session low of 10,625.07. Oil names were performing most gracefully among the otherwise battered gilded 30, with
up 1.6% and
up 1.5%. The
American Stock Exchange Oil Index
was gliding up 0.7% while the
Philadelphia Stock Exchange Oil Service Index
was climbing 2.4%. The pop comes after two down sessions.
Stock pickers who've found some recent light in energy can thank last night's inventory statistics for today's oil strength. The
American Petroleum Institute
reported a huge draw of 5.8 million barrels in crude stocks in the week ended June 18. Expectations were for 1 million barrels. August crude oil lately was up 51 cents to $18.26 a barrel.
was jumping 3.2% following an upgrade from
Morgan Stanley Dean Witter
, and the
Philadelphia Stock Exchange Forest and Paper Products Index
was rising 1%.
Nasdaq Composite Index
was dripping down 9 to 2571, above an earlier low of 2557.46. A handful of the proxy's biggest names were clawing their way out of negative territory, with
all in the green. The
remained down 0.1%.
Interents failed to be overwhelmingly inspired by talk that
Internet assets, including
TheStreet.com Internet Sector
index was off 2 to 575.
(TWE:NYSE) -- the world's second-largest discount broker and a unit of
-- was advancing 2 1/16, or 8.6%, to 26 1/16 in its IPO. Yesterday, the company boosted the size of its initial offering to 42 million shares from 32 million.
Piskorowski said the days of outrageous Internet IPOs are gone, at least for now. "And that's because there has been a salvation of demand," he said. "There are so many of these companies now that we have to separate the men from the boys, from what's a true growth engine and what are the dot-com add-ons."
Also falling short as a giddy influence,
yesterday, could not lift the financial segment with its earnings report. In its first earnings report as a publicly traded company, Goldman posted second-quarter pro forma operating earnings of $1.30 a share, topping the 11-analyst
forecast of $1.07. The
American Stock Exchange Broker/Dealer Index
was skidding 1.9%.
, meanwhile, were the most negative influences on the Dow. The broader
was down 10 to 1326, and the small-cap
was down 2 to 445.
The 30-year Treasury was down 27/32 to 88 1/32, lifting its yield to 6.13%. (For more on the fixed-income market, see today's early
Market internals were decidedly negative. On the
New York Stock Exchange
, decliners were leading advancers 1,854 to 956 on 392 million shares. And downs had the ups 1,977 to 1,481 on 514 million shares in
Nasdaq Stock Market
activity. New 52-week lows were outpacing new highs 44 to 30 on the Big Board, but new highs were topping new lows 48 to 33 on the Nasdaq.
Wednesday's Midday Movers
Investors were giving
the business -- in the negative,
sense of the verb -- after
set plans to form a competing electronic bill payment company. The banks are giving the company the rather intimidating appellation
, and said it will be ready for business by the end of the year. CheckFree was lately down 9 3/16, or 24.4%, to 28 1/2.
In other news:
, an outsourcer of Internet hosting and connectivity services to businesses, was moseying up 3 13/16, or, 10.4%, to 40 9/16 after fiber-optic network operator
Metromedia Fiber Network
set plans to buy it for about $1.6 billion in stock. Metromedia was off 5 1/2, or 12.9%, to 37 3/16.
was advancing 4 15/16, or 19.3%, to 30 9/16, largely on rumors -- unsubstantiated thus far -- that
might be considering purchasing the online software seller.
was shooting up 3 13/16, or 6.7%, to 61 3/16 on speculation that
was interested in buying the Internet service provider. Gateway was lately down 15/16 to 63 13/16.
was moving up 2 1/2, or 9.5%, to 28 15/16 after last night's news that Canada's
was buying it for $280 million in stock. Newbridge was lately off 1 7/16 to 29 5/16.
was popping 3 7/16, or 8.1%, to 46 1/8 after
Standard & Poor's
said last night that it is scheduled to move into the S&P 500 along with
, which lately was up 2 7/8, or 6.4%, to 47 11/16.
was sliding 4 1/8, or 13.1%, to 27 3/8 after the networker's CFO said last night that 3Com expects its revenue for the first and third quarter of 2000 to come in below year-ago figures. 3Com posted fourth-quarter earnings of 24 cents a share, 1 cent higher than the 25-analyst view and ahead of the year-ago 18 cents. The company also approved a 15 million-share repurchase plan.
Crown Cork & Seal
was falling 3 15/16, or 12.1%, to 28 1/2 after warning that its second quarter earnings will come in at 75 cents to 77 cents a share, well below the eight-analyst view of 92 cents a share.
As noted above, Goldman Sachs posted its first earnings report today, and the venerable brokerage didn't disappoint, beating expectations with second-quarter earnings of $1.30 a share. But the company lately was mired in negative territory along with the other brokerages, off 2 9/16 to 65 7/16.
was scooting down 9 9/16, or 56.9%, to a puny 7 1/4 after it warned today that it expects to lose 30 cents to 35 cents a share for its second quarter, a far cry from the six-analyst call for earnings of 17 cents a share.