Tech, Internet Sectors Continue to Climb
The
Dow Jones Industrial Average
lagged the rest of the market's major gauges this afternoon, as technology and Internet stocks soared.
The Dow was up 37 to 10,486.
The
S&P 500
was up 15 to 1321. The
Nasdaq Composite Index
was up 54 to 2463. The
Russell 2000
was up 9 to 424.
TheStreet.com Internet Sector
index was up 33 to 629.
The 30-year Treasury bond was down 1/32 to 96 4/32, yielding 5.52%.
On the
New York Stock Exchange
, advancers were beating decliners 1,766 to 1,135 on 591 million shares. On the
Nasdaq Stock Market
, winners were beating losers 2,202 to 1,535 on 739 million shares.
On the NYSE, 30 issues had set new 52-week highs while 14 had touched new lows. On the Nasdaq, 51 issues had set new highs while new lows totaled 34.
On the Big Board,
Cadence Design Systems
(CDN)
was most active on 15.8 million shares. It was down 8 13/16, or 42%, to 12, after it warned it sees slower revenue and earnings growth for the rest of 1999. It reported first-quarter earnings of 31 cents a share, a penny better than the
First Call
14-analyst outlook and up from the year-ago break-even. A host of analysts downgraded the stock today.
On the Nasdaq, most active was
Microsoft
(MSFT) - Get Report
, with 33 million shares changing hands. It was down 1 15/16 to 81 1/8. Microsoft after the close Tuesday posted third-quarter earnings of 35 cents a share, beating the 22-analyst First Call estimate of 32 cents and moving up from 25 cents a year ago.
Prudential Securities
downgraded Mister Softee to hold from accumulate.
In the news,
Dow Jones
(DJ)
said it will launch
dowjones.com
next month, a free Web site targeted at business people. Meanwhile, the company also said later this year
The Wall Street Journal
will produce an original weekly package of articles and information focused on personal finance and careers that will be published as branded pages in major metropolitan Sunday newspapers.
Merrill Lynch
today upgraded Dow Jones to long-term buy from long-term accumulate.
Dow Jones rose 1 7/16 to 54.
Sector Focus: Gaming
Gaming stocks advanced, led by
Harrah's Entertainment
(HET)
, which jumped after releasing a robust earnings report.
Harrah's was up 1 1/4, or 6%, to 22 7/8.
Harrah's posted first-quarter earnings from operations of 30 cents a share, up from the year-ago 25 cents. The First Call 19-analyst estimate projected the company to earn 27 cents a share. Harrah's, as of yesterday's close, was trading at a significant discount to the S&P 500, with a trailing price-to-earnings ratio of 17.4, compared to 29.4 for the S&P 500.
Harrah's operates 18 casinos in the U.S. under the Harrah's, Showboat and Rio brand names, and the Star City casino in Sydney, Australia.
The
Chicago Board Options Exchange Gaming Index
rose 2%.
Other gaming stocks were higher.
Mirage Resorts
(MIR)
advanced 15/16 to 25 1/16. Mirage hit a 52-week intraday high earlier when it peaked at 25 1/8.
Circus Circus
(CIR) - Get Report
, meanwhile, rose 1/2 to 21 5/16.
1:07 p.m.: Midday Musings: Sharing the Wealth, Market Continues Broad Recovery
11:53 a.m.: Russell Leads March Higher
The small-cap
Russell 2000
was sharply higher late this morning, pacing the market's major gauges on the upside, while market internals were decidedly positive.
The Russell 2000 was up 9, or 2%, to 424.
On the
New York Stock Exchange
, advancers were beating decliners 1,790 to 946 on 385 million shares. On the
Nasdaq Stock Market
, winners were beating losers 2,011 to 1,356 on 480 million shares.
On the NYSE, 22 issues had set new 52-week highs while 11 had touched new lows. On the Nasdaq, 41 issues had set new highs while new lows totaled 27.
The
Dow Jones Industrial Average
was up 36 to 10,485.
The
S&P 500
was up 14 to 1320. The
Nasdaq Composite Index
was up 41 to 2451.
TheStreet.com Internet Sector
index was up 31 to 626.
The 30-year Treasury bond was up 10/32 to 96 14/32, yielding 5.50%.
Tech Focus
Qualcomm
(QCOM) - Get Report
was the biggest gainer on the Nasdaq, up 38 1/2, or 27%, to 179 1/2. The company yesterday reported second-quarter earnings, excluding charges, of 82 cents a share, up from 25 cents a year ago and well in excess of the First Call 15-analyst consensus of 59 cents. Including the charges, the company lost 59 cents a share.
In response, several analysts upgraded the stock.
NationsBanc Montgomery Securities
upgraded it to buy from hold;
Goldman Sachs
upgraded it to trading buy from market outperform; and BT Alex. Brown upgraded it to strong buy from buy.
The
Nasdaq 100
was up 2%, while the
Morgan Stanley High-Tech 35
was up 3%. The
Philadelphia Stock Exchange Semiconductor Index
was up 5%, while the
Philadelphia Stock Exchange Computer Box Maker Index
was up 1%.
Compaq
(CPQ)
was down 1/4 to 23 3/4 after it reported first-quarter earnings today.
The PC maker posted first-quarter earnings of 16 cents a share. The First Call 29-analyst consensus outlook called for earnings of 15 cents. In the year-ago period, Compaq posted earnings of a penny.
On the Big Board,
Cadence Design Systems
(CDN)
was most active on 16 million shares. It was down 9 7/8, or 47%, to 10 15/16, after it warned it sees slower revenue and earnings growth for the rest of 1999. It reported first-quarter earnings of 31 cents a share, a penny better than the First Call 14-analyst outlook and up from the year-ago break-even.
A host of analysts downgraded the stock today.
On the Nasdaq, most active was
Microsoft
(MSFT) - Get Report
, with 26 million shares changing hands. It was down 1 1/16 to 82 1/16. Microsoft after the close Tuesday posted third-quarter earnings of 35 cents a share, beating the 22-analyst First Call estimate of 32 cents and moving up from 25 cents a year ago.
Prudential Securities
downgraded Mister Softee to hold from accumulate.
IBM
(IBM) - Get Report
slumped ahead of the release of its quarterly earnings report, falling 2 5/8 to 167 1/8. TheStreet.com previewed the earnings release due today in a story
this morning.
10:58 a.m.: Stocks Continue to Chip Away at Monday's Big Losses
Small-cap stocks were outpacing the rest of the market, as technology and Internet stocks resumed their upward trend in their quest to wipe out the massive losses they suffered in
Monday's swoon.
The
Russell 2000
was up 8, or 2%, to 423. The
Nasdaq Composite Index
was up 32 to 2441.
TheStreet.com Internet Sector
index was down 31 to 627.
The
Dow Jones Industrial Average
was up 63 to 10,512, paced by
Johnson & Johnson
(JNJ) - Get Report
and
Coca-Cola
(KO) - Get Report
.
The
S&P 500
was up 13 to 1320.
Looking ahead, Peter Green, director of technical research at
Gruntal
, said he anticipates the Nasdaq Comp to underperform the S&P 500 going forward because the Comp broke a relative strength uptrend line against the S&P 500 on Monday. He sees the Comp being supported at 2250.
Green has an upside target on the Dow of 10,900. He also noted that the Dow is going to run into resistance at 10,800.
The S&P could go as high as 1380, but "my sense is we're not going to do it," he said.
The 30-year Treasury bond was up 6/32 to 96 10/32, yielding 5.50%, off its best levels of the session.
Oil service stocks rose. The
Philadelphia Stock Exchange Oil Service Index
was up 4%.
Retail stocks advanced. The
S&P Retail Index
jumped 2%.
Transportation stocks were strong after falling yesterday. The
Dow Jones Transportation Average
was up 2%.
Market internals, meanwhile, were strong. 1,752 to 860 on 262 million shares. On the
Nasdaq Stock Market
, winners were beating losers 1,915 to 1,205 on 341 million shares.
On the NYSE, 18 issues had set new 52-week highs while 10 had touched new lows. On the Nasdaq, 35 issues had set new highs while new lows totaled 19.
On the Big Board,
America Online
(AOL)
was most active, with 12 million shares changing hands. It was up 8 3/16, or 6%, to 136 7/8.
On the Nasdaq,
Microsoft
(MSFT) - Get Report
was most active, with 20 million shares changing hands. It was down 1 7/8 to 81 1/4. Microsoft reported third-quarter earnings of 35 cents a share, beating the 22-analyst
First Call
estimate of 32 cents and moving up from 25 cents a year ago.
Prudential Securities
downgraded Microsoft to hold from accumulate.
10:00 a.m.: Stocks Mostly Higher in Volatile Trading
After opening higher, then falling, stocks were lately on the firm side as most of the market's major barometers were in the green.
The
Dow Jones Industrial Average
was up 21 to 10,469. The
S&P 500
was up 1 to 1307. The
Nasdaq Composite Index
was down 5 to 2405. The
Russell 2000
was up 3 to 418.
TheStreet.com Internet Sector
index was up 11 to 607.
The 30-year Treasury bond was up 15/32 to 96 20/32, yielding 5.48%.
AMR
(AMR)
, parent of
American Airlines
, posted first-quarter operating earnings of 34 cents a share, a penny ahead of the
First Call
11-analyst estimate. AMR was up 3/4 68 9/16.
Most Up at Open -- NYSE
Sap (SAP) - Get Report, up 3 1/4 to 27 7/8
: The company posted better-than-expected quarterly results.
Most Up at Open -- Nasdaq
Qualcomm (QCOM) - Get Report, up 33 5/8 to 174 1/4
: The company yesterday reported second-quarter earnings, excluding charges, of 82 cents a share, up from 25 cents a year ago and well in excess of the First Call 15-analyst consensus of 59 cents. Including the charges, the company lost 59 cents a share.
Most Down at Open -- NYSE
BP Amoco (BPA) , down 2 5/8 to 104 5/8
.
Most Down at Open -- Nasdaq
Amgen (AMGN) - Get Report, down 6 1/2 to 62 1/2
: The company yesterday produced first-quarter earnings of 46 cents a share, up from 35 cents a year ago and 2 cents better than the 25-analyst estimate.
Morgan Stanley Dean Witter
downgraded Amgen to neutral from outperform.
