(Updated from 8:50 a.m. EST)
News that George W. Bush is the certified winner in Florida has got the market feeling giddy this morning.
Dow Jones Industrial Average jumped 107 to 10,579. The tech-heavy
Nasdaq Composite Index gained 88 to 2993. And the
S&P 500, which tracks the broader market, moved up 16 to 1358.
Telecom and high technology stocks are attracting lots of attention this morning. Shares of
were up 4%, for example. Battered telecom giant
was also gaining 4%.
And shares of
were jumping 8% on the back of a business-to-business initiative in Korea. Last night, Commerce One announced
, a joint venture with large conglomerates in Korea including
that will offer businesses real-time buying and selling capabilities.
Still, there are some tech downgrades this morning.
to accumulate from strong buy. The firm said it believes further upward earnings estimate revisions are unlikely and that the outlook for future quarters is not as strong as it has been for last several quarters. The new price target is $42, down from $75. And
lowered its earnings forecasts for chipmakers
, citing slower demand in November. Lehman believes that neither of the semiconductor manufacturers will meet their 12% quarter-over-quarter growth targets for the fourth quarter. Xilinx was down 3.2%. Altera was off 4.8%.
Moves higher this morning follow a rally on Friday. But last week was still crummy, no matter how good the post-Thanksgiving gains looked. The Nasdaq spent the entire week below the psychologically important 3000 mark. For the week, the Dow was down 1.5%, the S&P 500 was down 1.9% and the Nasdaq was off 4.1%.
Market observers aren't sure short-term gains that happen now can be sustained since investors are concerned about how much the pace of economic and corporate growth is slowing.
doesn't seem to attract those concerns.
The Wall Street Journal
reported this morning that the aircraft maker is expected to pull in orders for at least 113 of its big 777 airliners, valued at more than $18 billion. The stock has been on a rip this year and was another 2.8% higher this morning to $67.50. It's 52-week low is $32.
But online postage company
is a reminder that some companies, especially many in the Internet space, are in for some tough times. E-Stamps announced this morning that it plans to leave the Internet postage business and cut its workforce by 30 percent. The company will now focus solely on Web-based shipping and logistics. The stock doubled this morning to 56 cents.
And what about that election? George W. Bush may be "preparing to serve" as America's next president after Florida certified him last night as the winner in the Sunshine State, but the legal contest continues. Bush named Dick Cheney, his vice presidential running mate, as head of his transition team and he tapped Andrew Card, a former Bush Sr. administration official, as his chief of staff. But we can expect the markets to be watching the developments in the courts this week.
There is a definitive winner in another closely watched race.
this morning named Jeffrey R. Immelt as the new president and chairman-elect of the conglomerate to succeed Jack Welch when he retires at the end of 2001. GE was up 1.7%.
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Bond prices were lower this morning. The benchmark 10-year Treasury Note was off 21/32 to 100 2/32, yielding 5.662%.
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European markets got a boost from Bush's announced victory in Florida. As midday approached in London, the
was up 58.7 to 6386.3. Over on the continent, the
in Paris was up 88.64 to 6234.3 and the
in Frankfurt rallied 113.08 to 6777.3.
Asian equity markets closed higher overnight.
In Tokyo, the
added 405.04 to 14,720.4. The dollar jumped higher to 111.06 yen.
index rose 225.86 to 14,602.76.
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