Tech, Internet Stocks Continue to Rise After Recent Selloff

The Treasury market is getting pounded after the release of some strong economic data.
Author:
Publish date:

Technology and Internet stocks were rallying today, in an effort to begin reversing its three-day losing streak, while the benchmark 30-year Treasury bond was getting pounded after the release of a couple of robust economic reports.

Transportation stocks were soaring.

The

Dow Jones Transportation Average

was up 1%.

The

Nasdaq Composite Index

was up 38 to 2566.

TheStreet.com Internet Sector

index was up 16 to 663.

The

Dow Jones Industrial Average

was up 42 to 10,920.

IBM

(IBM) - Get Report

and

3M

(MMM) - Get Report

were powering the Dow. IBM was up 4 7/8 to 209 11/16, while 3M, which beat analysts' earnings estimates today with its first-quarter profit report, was up 4 3/4 to 90 3/8.

Harry Laubscher, market analyst at

Tucker Anthony

, said he expects the Dow to move higher into next week as the market is currently in its strength cycle. His new target on the Dow is 11,020 to 11,050.

The

S&P 500

was up 3 to 1346. The

Russell 2000

was up 3 to 436.

The 30-year Treasury bond was down 29/32 to 95 4/32, yielding 5.59%.

The

Commerce Department

reported that

gross domestic product

advanced at a 4.5% annual rate in the first quarter, well above economists' forecasts of 3.3% growth.

Further weakening bonds came when the

National Association of Purchasing Management-Chicago

said its April index soared to 63.3 from 57.0 in March.

Cyclials were slightly weaker after running up over the last few sessions.

North America's largest farm equipment maker,

Deere

(DE) - Get Report

, was down 5 3/4, or 13%, to 39 3/8, after it warned yesterday it sees second-quarter sales volume falling 20% below year-ago levels and full-year sales falling 18% to 20%.

Laubscher said he has suggested to clients to take money that is in Deere currently and move it into

New Holland

(NH) - Get Report

.

New Holland yesterday posted first-quarter net income that outstripped Wall Street estimates by nearly 40%.

Yesterday,

Dresdner Kleinwort Benson

upgraded the stock to buy from hold, while today,

Salomon Smith Barney

upgraded it to buy from outperform.

Oil stocks are under pressure today after a recent runup. The

Chicago Board Options Exchange Oil Index

was down 1%.

While some Wall Street analysts have been downgrading oil company stocks lately because they think the stocks have run up too far, too fast, Laubscher's got a different view.

"We still think they're attractive," he said of the oil stocks.

On the

New York Stock Exchange

, advancers were beating decliners 1,472 to 1,093 on 280 million shares. On the Nasdaq, winners were beating losers 1,939 to 1,202 on 313 million shares.

On the NYSE, 45 issues had set new 52-week highs while 6 had touched new lows. On the Nasdaq, 55 issues had set new highs while new lows totaled 12.

On the Big Board,

America Online

(AOL)

was most active, with 7 million shares changing hands. It was up 4 3/8 to 145 3/4.

On the Nasdaq,

Compuware

(CPWR)

was most active, with 8 million shares changing hands. It was up 3, or 13%, to 26 13/16.

9:58 a.m.: Tech, Internet Sectors Rise After Recent Selloff

Technology and Internet stocks were sharply higher, rebounding after yesterday's selloff, while the

Commerce Department

reported that

gross domestic product

advanced at a 4.5% annual rate in the first quarter, well above economists' forecasts of 3.3% growth.

The

Dow Jones Industrial Average

was up 30 to 10,909. The

S&P 500

was up 7 to 1350. The

Nasdaq Composite Index

was up 42 to 2571. The

Russell 2000

was up 3 to 436.

TheStreet.com Internet Sector

index was up 15 to 663.

The 30-year Treasury bond was down 19/32 to 95 15/32, yielding 5.57%, in the wake of the GDP report.

Most Up at Open -- NYSE

YPF (YPF) - Get Report, up 7 1/2 to 43 7/16

: Spain's

Repsol

(REP)

has offered to buy the rest of

YPF

, Argentina's largest oil company, for $13.4 billion. In January, Repsol bought a 14.99% stake in YPF for $2 billion.

Most Up at Open -- Nasdaq

CMGI (CMGI) , up 15 5/8 to 255

.

Most Down at Open -- NYSE

Georgia-Pacific (GP) , down 2 7/16 to 43 7/16

.

Most Down at Open -- Nasdaq

Restoration Hardware (RSTO) , down 10 5/8 to 13 3/4

:

NationsBanc Montgomery Securities

downgraded the stock to hold from buy.