Rally in Financial Sector Boosts Dow
Financials were soaring as the
Dow Jones Industrial Average
was higher while tech and small-cap barometers continued lower.
The Dow was up 52 to 10,016.
AT&T
(T) - Get Report
was powering the Dow. Other big gainers in the index include
Citigroup
(C) - Get Report
and
American Express
(AXP) - Get Report
.
Bank and brokerage stocks were sharply higher. The
Philadelphia Stock Exchange/KBW Bank Index
was up 3%. The
American Stock Exchange Broker/Dealer Index
was up 5%.
Interest rates have been easing back down again and an interest rate increase appears to be out of the picture for now, which all bodes well for the financials, noted Louis Todd, head of equities trading at
J.C. Bradford
.
Optimism ahead of quarterly earnings reports also helped boost the financials.
The
S&P 500
was up 2 to 1320. The
Nasdaq Composite Index
was down 21 to 2542. The
Russell 2000
was down 3 to 398.
Weakness in parts of the market was blamed in part on profit-taking.
TheStreet.com Internet Sector
index was down 7 to 714.
TheStreet.com E-Commerce Index
was up 1 to 124.
Overall, Todd said investors are still a little concerned about what's happening in Kosovo and how much further the market can go.
Meanwhile in the Treasury market, the 30-year bond was up 1/32 to 96 2/32, yielding 5.52%.
Market breadth was weak.
On the
New York Stock Exchange
, decliners were beating advancers 1,622 to 1,277 on 609 million shares. On the
Nasdaq Stock Market
, losers were beating winners 2,168 to 1,685 on 990 million shares.
On the NYSE, 95 issues had set new 52-week lows while 58 had touched new highs. On the Nasdaq, 120 stocks had set new lows 102ile xx touched new highs.
On the Big Board,
America Online
(AOL)
was most active, with 21 million shares changing hands. It was down 3 1/2 to 164.
On the Nasdaq,
Network Associates
(NETA)
was most active, with 46 million shares changing hands. It was down 6 1/16, or 28%, to 15 15/16.
2:01 p.m.: Nasdaq Remains Stuck in Negative Territory After Early Rise
The
Nasdaq Composite Index
continued to be mired in the red after opening handsomely higher as the tech sector tumbled, while bank and brokerage stocks rallied.
The Nasdaq Comp was down 20 to 2543.
The
Dow Jones Industrial Average
was up 46 to 10,010. Big Dow boosters today were
AT&T
(T) - Get Report
,
Citigroup
(C) - Get Report
and
American Express
(AXP) - Get Report
.
The
S&P 500
was up 2 to 1320. The
Russell 2000
was down 2 to 399.
TheStreet.com Internet Sector
index was down 2 to 719.
TheStreet.com E-Commerce Index
was up 1 to 125.
In the world of e-commerce,
Universal Music
, a division of
Seagram
(VO) - Get Report
, and
BMG Entertainment
, a unit of
Bertelsmann
, unveiled their cyberspace joint venture. The venture, to be known as
GetMusic
, will consist of online music channels and an e-commerce site on the Web. Seagram was up 3 5/16, or 6%, to 58 1/4 on the news.
The 30-year Treasury bond was up 10/32 to 96 11/32, yielding 5.50%.
Bank and brokerage stocks were strong. The
Philadelphia Stock Exchange/KBW Bank Index
was up 3%. The
American Stock Exchange Broker/Dealer Index
was up 4%.
On the
New York Stock Exchange
, decliners were beating advancers 1,596 to 1,263 on 532 million shares. On the
Nasdaq Stock Market
, losers were beating winners 2,133 to 1,645 on 874 million shares.
On the NYSE, 87 issues had set new 52-week lows while 56 had touched new highs. On the Nasdaq, 110 issues had set new lows while new highs totaled 97.
On the Big Board,
America Online
(AOL)
was most active, with 19 million shares changing hands. It was down 2 1/4 to 165 1/4.
On the Nasdaq,
Network Associates
(NETA)
was most active, with 42 million shares changing hands. It was down 5 7/8, or 27%, to 16 1/8.
Company Focus: Revlon
Revlon
(REV) - Get Report
jumped 15% after it said it is considering the sale of one or more of its businesses. Proceeds would be used in part to pay down debt, Revlon said. The stock was up 3 1/16 to 23 1/16.
The company, controlled by financier Ron Perelman, has been the subject of takeover rumors lately, which has juiced up the company's stock price dramatically. As recently as March 22, the stock closed at 13 3/4. The stock is still a mile off its 52-week intraday high of 56 3/8.
1:21 p.m.: Midday Musings: Traders Seize Profits in Tech Ahead of Big Earnings Report
11:54 a.m.: Dow Clings to Positive Territory
The
Dow Jones Industrial Average
was the lone major market average above water late this morning as the tech-heavy
Nasdaq Composite Index
-- which led the market on the upside early on -- was now leading on the downside, and was off 2%.
The Dow was up 5 to 9969. The
S&P 500
was down 3 to 1315. The Nasdaq Comp was down 46 to 2517. The
S&P 500
was down 3 to 1315. The
Russell 2000
was down 3 to 398.
TheStreet.com Internet Sector
index was down 10 to 711.
TheStreet.com E-Commerce Index
was down 3 to 121.
The 30-year Treasury bond was up 7/32 to 96 9/32, yielding 5.51%.
On the
New York Stock Exchange
, decliners were beating advancers 1,464 to 1,228 on 345 million shares. On the
Nasdaq Stock Market
, losers were beating winners 1,906 to 1,505 on 555 million shares.
On the NYSE, 65 issues had set new 52-week lows while 54 had touched new highs. On the Nasdaq, 88 issues had set new highs while new lows totaled 83.
On the Big Board,
Lucent
(LU)
was most active, with 13 million shares changing hands. It was down 1 3/4 to 62 7/8.
On the Nasdaq,
Network Associates
(NETA)
was most active, with 28 million shares changing hands. It was down 6 3/16, or 28%, to 15 13/16.
Tech Focus
The
Nasdaq 100
was down 3%, while the
Morgan Stanley High-Tech 35
was down 2%. The
Philadelphia Stock Exchange Semiconductor Index
was down 3%.
Yahoo!
(YHOO)
is slated to report earnings today.
TheStreet.com
previewed the earnings report
yesterday. Ahead of the report, it was down 5/84 to 214. It had traded as high as 231 today.
Hewlett-Packard
(HWP)
and software maker
BEA Systems
(BEAS)
set an alliance to provide the companies' customers with a software infrastructure for building e-commerce solutions and integrating enterprise applications. Under the pact, Hewlett-Packard is committing $100 million to BEA Systems over three years.
Hewlett-Packard was down 1 7/8 to 68 1/8, while BEA Systems was up 5/16 to 16 1/2.
10:49 a.m.: Stocks Continue to Climb
The major market averages were solidly higher at midmorning. However, the big tech stock surge at the open has cooled somewhat.
The
Dow Jones Industrial Average
was up 55 to 10,018.
AT&T
(T) - Get Report
and
Alcoa
(AA) - Get Report
were leading the Dow. Alcoa was up 1, or 2%, to 42 1/16, after it beat analysts' estimates for first-quarter earnings. The company reported first-quarter earnings of 60 cents a share, beating the 16-analyst
First Call
consensus estimate of 54 cents, but down from the year-ago 62 cents. AT&T was up 3 1/2, or 4%, to 83 5/8
The
S&P 500
was down 9 to 1327. The
Nasdaq Composite Index
was up 13 to 2576. The Nasdaq Comp was in record territory, but off its highs. The Comp had surged as much as 33 points earlier.
The small-cap
Russell 2000
lagged the other major market barometers badly. It was up 1 to 402.
TheStreet.com Internet Sector
index was up 7 to 727.
Yahoo!
(YHOO)
was up 4 11/16 to 219 1/2. The cyberspace giant is slated to report earnings today.
TheStreet.com E-Commerce Index
was up 2 to 125.
Overall, John Roque, senior analyst at
Arnhold & S. Bleichroeder
is cautious on the market.
Roque, in a note this morning, wrote he'd feel a lot better about stocks if bond yields fell below 5.42%. Conversely, a move in yields up above 5.69% would be a big negative for stocks.
The 30-year Treasury bond was up 3/32 to 96 4/32, yielding 5.52%.
On the
New York Stock Exchange
, advancers were beating decliners 1,318 to 1,166 on 204 million shares. On the Nasdaq, winners were leading losers 1,555 to 1,507 on 325 million shares.
On the NYSE, 48 issues had set new 52-week highs while 41 had touched new lows. On the Nasdaq, 84 issues had set new highs while new lows totaled 58.
On the Big Board,
Lucent
(LU)
was most active, with 9 million shares changing hands. It was up 1/2 to 65 1/8.
On the Nasdaq,
Network Associates
(NETA)
was most active, with 19 million shares changing hands. It was down 5, or 23%, to 17. Yesterday the company warned first-quarter earnings would fall below Wall Street estimates. The company also yesterday reported fourth-quarter earnings of 50 cents a share, 4 cents ahead of the 20-analyst First Call view and above the year-ago 22 cents. Today a host of analysts downgraded the stock.
9:59 a.m.: Nasdaq Adds to Tuesday's Record Close
Technology stocks were taking off again in the early going, with the
Nasdaq Composite Index
pacing the market's major averages on the upside.
The Nasdaq Comp, which closed at a record high yesterday, was up 24 to 2587. Meanwhile, the
Dow Jones Industrial Average
was up 47 to 10,011. The
S&P 500
was up 7 to 1325. The
Russell 2000
was up 1 to 403.
TheStreet.com Internet Sector
index was up 13 to 733.
TheStreet.com E-Commerce Index
was up 2 to 126.
The 30-year bond was down 2/32 to 95 31/32, yielding 5.53%.
Revlon
(REV) - Get Report
said it is considering the sale of one of more of its businesses. Revlon was up 3 1/4, or 16%, to 23 1/4.
Most Up at Open -- NYSE
Sony (SNE) - Get Report, up 3 5/16 to 99 1/2
.
Most Up at Open -- Nasdaq
InfoSpace (INSP) - Get Report, up 19 1/2 to 109 1/8
: The company set a 2-for-1 stock split.
Most Down at Open -- NYSE
Glaxo Wellcome (GLX) , down 13/16 to 69 1/2
: The
Food and Drug Administration
told Glaxo it plans to extend a review of the company's drug
Relenza
beyond April 27, the drug titan said.
Most Down at Open -- Nasdaq
Engineering Animation (EAII) , down 17 11/16 to 22 1/4
: The company expects first-quarter revenues to fall 15% below analysts' expectations and first-quarter earnings to come in below Wall Street expectations. The six-analyst
First Call
consensus estimates calls for earnings of 26 cents a share.
