All it took was another feel-good economic number to keep the party going on Wall Street today, as investors cracked open their wallets and (selectively) bought up shares on increased hopes that Greenspan won't spoil the dance. Today's trading session theme changed, however, putting financials and industrials back in fashion while leaving tech stocks tagged as yesterday's news.
A benign May
Consumer Price Index
report lent more weight to the notion that Greenspan might not have factored a rate increase into this month's
Federal Open Market Committee meeting agenda, as cash went to work in stocks that ended yesterday's out of favor. The latest trading activity may be broadening the stock market, but it's keeping insiders at bay as they plot and plan their next investment strategy.
"It's been interesting because the bias over the past two days has been up in a very mixed market," said Scott Bleier, chief investment strategist at
. "The market has so many people focused on finding a trend that's going to stick. The only tech trends that seem to be working are semis and optical networking, and outside of tech, drugs and oils have really been the focus."
Dow Jones Industrial Average ended the day up 66.11, or 0.6%, to 10,687.95, powered by cyclical components.
lifted 6.2%, while
jumped 2.2%, as investors went back into the big industrial names. Recently, these stocks have suffered, as investors dropped the stocks that have their earnings and revenue tied to the slowing economy.
Financials were burning up the
Big Board after
posted better-than-expected second-quarter earnings. The stock finished up 1 3/8, or 3.3%, to 42 1/4.
"The brokers act much better ahead of earnings," said Patrick Boyle, director of trading at
Credit Suisse First Boston
. "Before earnings, they take them up. It's --" hey, you may have heard this before "-- buy on the rumor, sell on the news."
During the spring tech decline, investors flocked to the oils as a haven from losses. Last quarter's strong earnings, coupled with oil's high price gave the sector a pop but the recent tech resurgence took a little air out of its balloon. Today, however, investors returned, and kept the
American Stock Exchange Oil & Gas Index
bouncing during intraday trading. Despite the pop, the stock finished down a fraction. Dow component
closed up 1.7%, while ex-Dow component
tacked on 1.6%.
The drug sector, also tagged as a safety investment by the investing-savvy, was buzzing again, with the
American Stock Exchange Pharmaceutical Index
polishing off the session up 1.5%.
ended the day 2.5% higher.
Frustrating Lack of Commitment
Today's gains on the Dow are marked by tepid participation, and that has some investors frustrated by the lack of commitment. But other say that the lofty, first-quarter volume levels are a tough act to follow.
"We had a robust end to last year and speculative money pouring into the market," said Art Hogan, chief market strategist at
. "Two of the largest hedge funds
and George Soros'
have disappeared, and the corrective action of the market that tech and telecom stock went through wiped out a great deal of daytraders."
Nasdaq Composite Index couldn't sustain yesterday's climb, ending the day off 53.65, or 1.3%, to 3797.41, with semiconductors serving as the biggest downers.
Philadelphia Stock Exchange Semiconductor Index
slipped 4.3%, with a 7.5% loss from
and a 6.5% loss from
TheStreet.com Internet Sector
index fell 14.95, or 1.6%, to 898.68, with
skidding 2 9/16, or 5.2%, to 46 7/16.
But an investment from
on the upside. The deal calls for AOL to take a $200 million interest in the company and would allow TiVo to offer AOLTV subscribers the option of making their own TV schedules. TiVo surged 12, or 56.7%, to 33, while AOL moved up 1, or 1.9%, to 52 5/8.
moved on up 2 5/8, or 3.8%, to 70 1/2, after a federal appeals court agreed to hear the software giant's appeal against splitting up the company.
S&P 500 lifted 1.10 to 1470.54, while the small-cap
Russell 2000 slipped 4.08, or 0.7%, to 509.67.
Breadth was mixed, on normal, moderate volume.
New York Stock Exchange:
1,676 advancers, 1,257 decliners, 932.4 million shares. 102 new 52-week highs, 34 new lows.
Nasdaq Stock Market:
1,797 advancers, 2,233 decliners, 1.379 billion shares. 64 new highs, 67 new lows.
For a look at stocks in the news, see the Company Report, published separately.