Even LL Cool J might be tempted to call today's tech-sector move a
comeback as the
Nasdaq Composite Index makes an attempt to repair its painful 5.1% drop since Friday.
Coming out of the Labor Day holiday weekend, fears about slower third-quarter earnings turned into a two-day sell-fest that wiped out nearly half of the roughly 12% rally in August.
"The bias is positive and investors are just looking to buy the dips," said Jack Ablin, manager of
Colonial Asset Management
in Jacksonville, Fla., adding that he doesn't read too much into the move up today, since the Comp was getting oversold."There is still a lot of cash on the sidelines, but we're not looking for any screaming buys."
The Comp was lately up 66 to 4080.
Meanwhile it was the
Dow Jones Industrial Average's turn to take some lumps as the average was unable to keep a hold on the modest gains of the past two days. It was lately down 23 to 11,288. Weakness in
was outweighing strength in tech components. J.P. Morgan was down 3.8% after soaring 5% yesterday on
Chemical top dog DuPont this morning warned that it would miss 2000 earnings per share estimates due to increases in energy and raw materials costs. Oil prices have consistently hit new 10-year highs in the past week. The stock was lately down 11%.
Semiconductor stocks were showing some strength with the
Philadelphia Stock Exchange Semiconductor Index
up 3.3%. Bellwether
, which was hit by a downgrade yesterday, was up 1.2% today, to $31.13.
Elsewhere in the market, the broader
S&P 500 was up 9 to 1501, the small-cap
was up 2 to 539.
Internet stocks were under fire after seeing a nice runup last month, and the
TheStreet.com Internet Sector
index was down 10 to 836.
Internet sector guru
Henry Blodget was the culprit.
Blodget appeared on the scene around the open this morning with a report saying that online advertising agency
announcement that it will miss third-quarter earnings confirmed his belief that "this will be a tough quarter for the online advertising industry as a result of the ongoing dot-com shakeout."
Breadth was mixed on just moderate volume.
New York Stock Exchange: 1,284 advancers, 1,349 decliners, 560 million shares. 95 new 52-week highs, 29 new lows.
Nasdaq Stock Market: 1,903 advancers, 1,749 decliners, 907 million shares. 61 new highs, 26 new lows.
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Most Active Stocks
NYSE Most Actives
- Associates First (AFS) : 13.8 million shares.
Citigroup (C) - Get Report: 12.8 million shares.
Compaq (CPQ) : 12.2 million shares.
Nasdaq Most Actives
- Microsoft (MSFT) - Get Report: 39.3 million shares.
Read Rite (RDRT) : 28.8 million shares.
WorldCom (WCOM) : 22.2 million shares.
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Drug stocks were soaring this morning after falling on
Banc of America Securities'
analyst Leonard Yaffe's downgrade of the pharmaceutical sector to market weight from overweight Tuesday. Yaffe said he believes growth of the U.S. drug industry could slow significantly and that a shift to generic drugs would hurt the sectors biggest companies.
The American Stock Exchange Pharmaceutical Index
was lately up 1.8%, with heavy-hitters
Oil service stocks were sinking after OPEC said it plans to raise output by 700,000 barrels a day when it meets in Vienna on Sunday. Crude oil prices edged off a little from a 10-year high. Oil service stocks have seen a wild run-up since late July as surging prices kept surprising the market. The
American Stock Exchange Oil & Gas Index
was lately down 0.1%.
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Treasuries were falling on little news as the economic data drought continued.
The benchmark 10-year note was lately down 4/32 to 100 3/32, and yielding 5.74%.
With no major economic reports slated before next Thursday's (
retail sales and the
Producer Price Index) and Friday's (the
Consumer Price Index and
industrial production, the Treasury market is biding its time, looking to energy prices and the corporate bond-offering calendar for guidance.
Oil yesterday hit a 10-year high, and the corporate bond-offering calendar is projected to be heavy for the month, competing with Treasuries for investor dollars.
In late trading, the European indices were mixed with London's
down 5.5 to 6689, while in Paris the
was down 37.67 to 6834.46. Germany's
was bucking the trend, rising 39.39 to 7372.41.
Asian markets took a little trip lower overnight.
Buying in software and transportation shares countered selling on weak economic data in Japan, but the
index shed 99.41 to close at 16,300.46.
index dipped 173.28, or 1%, to close at 17,431.95, largely on investor disappointment with the share placement of
. The firm said it would place up to 60 million shares at HK$5.08 each with an option to see up to 15.8 million additional shares at the same price. With shares closing down HK$0.65, or 11.2%, at 5.15 ($0.66) today, investors wondered why the firm decided to place shares at such a discount.
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