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Federal Reserve


Alan Greenspan


last night there's something "profoundly different" about the economy, but today's stock market looked awfully familiar.

Buoyed by benign inflation data -- namely the

Consumer Price Index

-- and strong corporate earnings -- namely from


(INTC) - Get Intel Corporation Report

-- stock proxies soared, with tech names leading the charge.

Also keeping to recent form, bonds fell, reacting to both the more cautious comments in Greenspan's speech and the fact money was flowing into equities. The price of the 30-year Treasury bond fell 12/32 to 92 26/32, its yield rising to 6.69%. (The bond market closed today at 2 p.m. EST ahead of Monday's Martin Luther King Day observance, for which all U.S. financial markets will be shuttered.)


Dow Jones Industrial Average

sauntered into the long weekend with a gain of 140.55, or 1.2%, to 11,722.98, another all-time high.

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The Dow got its biggest boost from Intel, which leapt 13.2% to an all-time high 103 1/16 in the wake of its earnings report

last night. Although some

questioned the quality of Intel's earnings, several analysts issued positive comments about the chip giant. Furthermore, Intel's news sparked solid gains for most tech bellwethers.


Nasdaq Composite Index

jumped 107.13, or 2.7%, to 4064.34 as stalwarts such as


(MSFT) - Get Microsoft Corporation Report



(ORCL) - Get Oracle Corporation Report


Sun Microsystems

(SUNW) - Get Sunworks Inc. Report


Applied Materials

(AMAT) - Get Applied Materials Inc. Report

joined Intel on the upside. The

Nasdaq 100

rose 2.6%.

Microsoft rose 4.2% after last night's

change at the top. Applied Materials gained 8.9%, benefiting from both Intel's good fortune and its acquisition of

Etec Systems


, announced

late Wednesday.

The tech advance was not all-encompassing, however.


(LU) - Get Lufax Holding Ltd American Depositary Shares two of which representing one Report

fell 5.8% amid rumors -- denied by the company -- that it is the subject of an inquiry by the

Securities and Exchange Commission

into its

accounting practices.

Still, chip and equipment makers and PC manufacturers followed Intel's lead, notably

Advanced Micro Devices

(AMD) - Get Advanced Micro Devices Inc. Report



(AAPL) - Get Apple Inc. Report


Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

. The

Morgan Stanley High-Tech 35

gained 1.5%.




rose 9% following

upgrades by

Lehman Brothers



. (The company is scheduled to report earnings Monday, despite the holiday.) The

Philadelphia Stock Exchange Semiconductor Index

rose 8.1%.

Internet stocks also rallied, led by



, although the enthusiasm for the group was relatively restrained. Internet Sector

index rose 10.29, or 0.9%, to 1108.24.

Similarly, New Tech 30

rose a modest 4.14, or 0.7%, to 587.32. Unveiled Jan. 5, the TSC New Tech 30 is an expanded index designed to replace the

Red Hots

index: The market-cap-weighted index remains focused on tracking the most scorching part of the market, the magnet for Wall Street's hot money. A list of the new index components is available at

As if Intel's earnings and the

weaker-than-expected CPI report weren't enough, stocks also got a boost from merger news. The drug sector was high on word

SmithKline Beecham

(SBH) - Get Sally Beauty Holdings Inc. (Name to be changed from Holdings Inc.) Report


Glaxo Wellcome


are in merger talks, plus yesterday's reports



will consider


(PFE) - Get Pfizer Inc. Report

heretofore hostile offer. The

American Stock Exchange Pharmaceutical Index

gained 1.5%.

Also, financial stocks such as Dow components

American Express

(AXP) - Get American Express Company Report


J.P. Morgan

(JPM) - Get JP Morgan Chase & Co. Report

advanced. The

Philadelphia Stock Exchange/KBW Bank Index

rose 3.5%.

Reflecting the broad participation, the

S&P 500

rose 15.48, or 1.1%, to 1465.16 -- a hair below its all-time closing high of 1469.25 -- and the

Russell 2000

gained 6.37, or 1.3%, to a record 507.56.

Rather than CPI or Greenspan, "today had more to do with earnings," according to Jay Meagrow, vice president of trading at


in Cleveland. "It's a great day ahead of next week," when earnings announcements begin en masse.

Intel was a "huge driver" but there were also a slew of upgrades and raised estimates on some "big names" by "big firms" that spurred today's advance, Meagrow said, noting Motorola and

Lands' End

(LE) - Get Lands' End Inc. Report

, which gained 7% following positive comments from

Goldman Sachs


Credit Suisse First Boston



New York Stock Exchange

trading, 1.081 billion shares were exchanged while advancers bested declining stocks 1,611 to 1,394. In

Nasdaq Stock Market

action, 1.64 billion shares traded while gainers led 2,396 to 1,758. New 52-week highs bested new lows by 119 to 59 on the Big Board and by 265 to 59 in over-the-counter trading.

Not So Fast

While the stock market obviously ignored the

hawkish elements of Greenspan's speech, even some avowed bulls say caution is warranted.

Greenspan is "trying to walk a fine line," said Philip Tasho, CEO at

Riggs Investment Management

in Washington and long one of the Street's most bullish strategists. "He's not looking at a crash like when he first came in, in 1987, but he's trying to mute returns in the stock market for this year to dash expectations. He'll continue to

tighten until he gets what he wants," which is both a slowing economy and a dampening of consumer confidence and investors' expectations.

Investors focus today on "robust earnings expectations" after Intel's report is akin to when the


hit the iceberg "and people still had a few hours until reality hit," he said. "Here, we're still enjoying the party."

Despite references to that famous disaster, Tasho is not looking for a "dramatic fall" in stock prices but expects modest returns this year for major averages in 2000 of below 10%. He believes "long-term investors should always stay invested" but foresees bonds, interest-rate-sensitive stocks, and "more stable" growth names such as health care as being better alternatives in 2000 than those with exceedingly high valuations.

Among other indices,

Dow Jones Transportation Average

slid 1.26 to 2891.63; the

Dow Jones Utility Average

gained 2.44, or 0.8%, to 302.24; and the

American Stock Exchange Composite Index

added 3.11, or 0.4%, to 869.74.

For the week, the Dow rose 1.7%, the S&P added 1.6%, the Nasdaq leapt 4.7%, the Russell climbed 3.9%, the DOT gained 2.2%, the TSC New Tech 30 fell 1.3%, the Dow transports slid 2.5%, the Dow utilities rose 1.5% and the Amex Composite rose 0.7%.

Market data above are preliminary. For coverage of today's top stocks in the news, see the Company Report, published separately