It's happy time in
Dow Jones Industrial Average decided that being above 10,000 is a good thing, while the kooky
Nasdaq Composite Average fell back in love with triple-digit gains. And who could blame them?
Earnings have been the plague of the markets the last few weeks, but not today. Positive earnings announcements from
have all helped the market turn around.
Microsoft has been the biggie. The software titan reported
stellar earnings last night after the close and had its estimates upped by
. The company has been
Dow favorite this morning, slapping some 53 points of upside on the index.
Speaking of Dow favorites, the lately downtrodden
was adding 50 points to the index. Yesterday, the stock suffered after its merger mate
posted disappointing earnings. Financials were being helped by economic data released today that showed the August U.S. trade deficit fell more than anticipated.
While earnings have provided the bulk of today's good feelings, one market watcher also gave some credit to the boys in Washington.
"The principle cause for the rally is
Fed'sincrease in the
money supply caught a lot of people off base that it's so strong," said Tracy Herrick, market strategist at
He said it's up 11% and is just beginning to be appreciated by the market. "The market will move two steps up and one step down for the next two weeks. That means it will be rising, just not in a straight line."
Herrick also said that a very good sign for the broader market today has been that practically everything is rallying today -- the opposite of yesterday.
Telcos weren't doing so well yesterday, but thanks to
were all bouncing higher.
was up about 5.8% to $116.75 after
upgraded its rating to buy from outperform and
boosted its EPS estimates for 2000 and 2001.
Breadth was positive for a change on heavy volume.
New York Stock Exchange: 1,788 advancers, 893 decliners, 746 million shares. 18 new 52-week highs, 66 new lows.
Nasdaq Stock Market: 2,563 advancers, 1,151 decliners, 1.321 billion shares. 34 new highs, 115 new lows.
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Most Active Stocks
NYSE Most Actives
- Nokia: 31.1 million shares.
America Online: 22.1 million shares.
Texas Instruments (TXN) - Get Report: 17.8 million shares.
Nasdaq Most Actives
- Microsoft: 82.9 million shares.
Intel (INTC) - Get Report: 4206 million shares.
Cisco (CSCO) - Get Report: 41.2 million shares.
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Today is opposite day. Almost everything that was red yesterday is green today.
Philadelphia Stock Exchange Computer Box Maker Index
was up 4.4%, with all components save
American Stock Exchange Pharmaceutical Index
was 2.9% lower and the
Philadelphia Stock Exchange Gold & Silver Index
was teetering, off 0.2%.
Nasdaq Biotechnology Index
, which has been rallying solidly for a week, was down 0.3%.
The semiconductors were rebounding nicely following Nokia's news, as it bodes well for chip demand, something analysts have been concerned about for months. The
Philadelphia Stock Exchange Semiconductor Index
was lately up 12.2%. The index has been backing and filling but trending heavily downward since early September.
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Following yesterday's erratic trading, the bond market has been mixed today.
The benchmark 10-year
Treasury note is quoted at 100 21/32, up 8/32, to yield 5.661%.
Treasury bondis 9/32 higher, trading at 107 5/32 and yielding 5.742%
Alan Greenspan is making an important speech today on " Challenges for Monetary Policymakers," at the Cato Institute. The text suggests that the speech has no clear implications for near-term monetary policy, but it is constructive in tone. Greenspan supports the view that the economy is experiencing a "sustained pickup in productivity growth" that should enable it to grow at a faster rate without generating inflation.
Philadelphia Fed Index
) for October fell to -3.8 after a rise of 8.2 in September. The index was much weaker than expected and clearly suggests slowing economic performance.
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Major European markets got a lift from strength in telecom stocks following Nokia's earnings.
was up 70.70 to 6218.90.
in Paris was up 129.13 to 6066.48, while the still-trading
in Frankfurt was 124.14 higher to 6607.14.
The beleaguered euro steadied after the ECB decided to leave interest rates unchanged. The euro was lately trading at 0.8409.
Asian equity markets closed lower Thursday, as technology shares in Taiwan experienced a particularly nasty drop.
Amid political uncertainty at home and lacking support from Wall Street, Taipei's
index plummeted 351.0, or 6.5%, to 5081.3. Many stocks dropped the market's daily maximum of 7%.
erased early gains to drop 61.4, or 0.4%, to close at 14,811.1.
In Tokyo trading, the dollar traded down to 107.90 yen. The greenback was lately trading higher to 108.40.
Elsewhere, Hong Kong's
index fell 36.0, or 0.3%, to 14,422.5, as banking heavyweight
fell HK$2.00, or 1.9%, to 105.00 ($13.47) and
rose HK$0.70, or 1.4%, to 49.70.
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