It's happy time in

Crazyland again.

That nutty

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

Nokia

(NOK) - Get Report

,

Microsoft

(MSFT) - Get Report

,

America Online

(AOL)

and

Broadcom

(BRCM)

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

Goldman Sachs

and

Merrill Lynch

. The company has been

the

Dow favorite this morning, slapping some 53 points of upside on the index.

Speaking of Dow favorites, the lately downtrodden

J.P. Morgan

(JPM) - Get Report

was adding 50 points to the index. Yesterday, the stock suffered after its merger mate

Chase Manhattan

(CMB)

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

that the

Fed'sincrease in the

money supply caught a lot of people off base that it's so strong," said Tracy Herrick, market strategist at

Jeffries

.

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

Nokia,

Motorola

(MOT)

,

WorldCom

(WCOM)

and

Ericsson

(ERICY)

were all bouncing higher.

Meanwhile,

Sun Microsystems

(SUNW) - Get Report

was up about 5.8% to $116.75 after

ABN Amro

upgraded its rating to buy from outperform and

Bear Stearns

boosted its EPS estimates for 2000 and 2001.

Market Internals

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.

Back to top

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

Back to top

Sector Watch

Today is opposite day. Almost everything that was red yesterday is green today.

The

Philadelphia Stock Exchange Computer Box Maker Index

was up 4.4%, with all components save

Apple

(AAPL) - Get Report

and

Intel

(INTC) - Get Report

being rewarded.

The

American Stock Exchange Pharmaceutical Index

was 2.9% lower and the

Philadelphia Stock Exchange Gold & Silver Index

was teetering, off 0.2%.

The

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.

Back to top

Bonds/Economy

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%.

The 30-year

Treasury bondis 9/32 higher, trading at 107 5/32 and yielding 5.742%

Fed Chairman

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.

The

Philadelphia Fed Index

(

definition |

chart |

source

) 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.

Back to top

International

Major European markets got a lift from strength in telecom stocks following Nokia's earnings.

London's

FTSE 100

was up 70.70 to 6218.90.

The

CAC 40

in Paris was up 129.13 to 6066.48, while the still-trading

Xetra Dax

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.

The major

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

TWSE

index plummeted 351.0, or 6.5%, to 5081.3. Many stocks dropped the market's daily maximum of 7%.

Tokyo's

Nikkei 225

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

Hang Seng

index fell 36.0, or 0.3%, to 14,422.5, as banking heavyweight

HSBC

(HBC)

fell HK$2.00, or 1.9%, to 105.00 ($13.47) and

China Mobile

(CHL) - Get Report

rose HK$0.70, or 1.4%, to 49.70.

Back to top