SAN FRANCISCO -- Stocks bounced today in a move reminiscent (to some) of a
pizza: It was delivered in timely fashion but lacked flavor and ultimately wasn't worth the calories.
After last week's dismal showing, stocks enjoyed a bit of a lift early on. In addition to "oversold" conditions generated by recent selling, today's move was aided by the dollar, which climbed to 105.68 yen from 104.20 late Friday after the
supportive comments about the greenback.
But even at its apex few equity players were 'buying' the upturn, noting a lack of compelling volume. Their skepticism was verified as major averages closed well below session highs after falling demonstrably in the final hour.
After trading as high as 10,402.49 at midmorning and trading at 10,377.16 with about 45 minutes left in the session, the
Dow Jones Industrial Average
closed up 24.06, or 0.2%, to 10,303.39.
Procter & Gamble
ensured a positive session for the Dow.
proved the average's greatest drags.
followed as similar path as the Dow, closing up 5.95, or 0.5%, to 1283.31 after trading as high as 1295.03. The index did, however, avoid falling into a technical correction after closing
Friday just a fraction short of a 10% decline from its all-time high.
Tech gauges -- of both the traditional and Internet variety -- were the best relative performers today, although they too failed to sustain intraday heights. The
Nasdaq Composite Index
closed up 21.34, or 0.8%, to 2761.75 after trading as high as 2794.16.
TheStreet.com Internet Sector
index rose 11.39, or 1.8%, to 629, albeit off its best of 642.03.
The Comp was led by
, which rose 4.2% after an upgrade from
Credit Suisse First Boston
The DOT got a lift from
, which leapt 9.7% ahead of earnings. After the close the "Internet incubator" announced fourth-quarter profits of $4.24 a diluted share (including asset-sale gains) vs. a loss of 30 cents a year ago. The six-analyst estimate was for profits of $4.08.
rose 4.77, or 1.1%, to 421.86, but it's still down for 1999 (by 0.10). That, of course, means it's also below its 1997 close of 437.02.
What Kevin Spacey Movie Is This Like?
"It's the usual suspects," Charles Payne, president and chief analyst at
Wall Street Strategies
, said of today's gainers, noting CMGI and Sun Microsystems.
He called the action in
"mind-boggling"; after a huge upswing last week, the stock rose as high as 198 5/8 before closing off 0.5% to 175 3/8.
Additinally, he noted
enjoyed "no follow-through" from recent gains, while
jumped 29.6% after a
Of the big picture, Payne expressed disappointment.
"In the last three weeks we've had so many instances when the market came out of the gate really strong, then around three o'clock we get the moment of truth," the strategist said. "It's a good thing we weren't down today
at that hour. In the last couple of hours
today declining issues doubled and volume is light. It's tough to get excited about this. I'd be real happy to get a rally when we close at the high with breadth. "
Hoping for a "one-two punch" of no
action and strong earnings, Payne expects a strong move for stocks in the fourth-quarter, but wonders "just what it will take to get the masses involved."
New York Stock Exchange
trading today, 780.8 million shares were exchanged while advancers led declining stocks 1,753 to 1,238. In
Nasdaq Stock Market
action 936.8 million shares traded while gainers led 2,028 to 1,802. Still, new 52-week lows bested new highs 248 to 22 on the Big Board and by 119 to 63 in over-the-counter trading.
"I expected a bounce and you're getting it," said Gary Kaltbaum, chief technical analyst at
in Orlando, Fla. "Even with the market doing well today, J.P. Morgan and
are down. Those are important names that need to be acting well."
J.P. Morgan slid 3.6% and Merrill Lynch lost 3.2% as most financials lagged; the
Philadelphia Stock Exchange/KBW Bank Index
shed 2.1% while the
American Stock Exchange Broker/Dealer Index
slid 0.7%. The action left many questioning the validity of the rally in major stock proxies.
Kaltbaum attributed financials' struggles to the performance of the bond market, where the price of the 30-year Treasury bond fell 25/32 to 101 10/32, its yield rising to 6.03%.
"I think the direction of interest rates is up," he said. "The only reason they came down
last week is a flight to quality. If we go through 6.25% it will have ominous consequences for a market already on the defensive."
Being a stock-market technician, Kaltbaum did not deign to predict whether the long bond yield will crack that level. But utility stocks have "broken down," as have financials such as
, which are "the biggest proxies of interest rates," he observed. "Then you get gold. I don't think anything good comes from gold going higher in price."
Gold futures soared 5.2% to $283.80 the ounce in New York today following the announcement by 15 European central banks of a five-year moratorium on new gold sales. Mining stocks such as
Battle Mountain Gold
were among the biggest percentage gainers, while the
Philadelphia Stock Exchange Gold & Silver Index
In a research report this morning, Kaltbaum suggested investors "use any short-term bounce at this juncture to lighten up."
It's a sentiment shared by many on Wall Street.
Among other indices,
Dow Jones Transportation Average
fell 16.57, or 0.6%, to 2862.45; the
Dow Jones Utility Average
dipped 1, or 0.3%, to 293.73; and the
American Stock Exchange Composite Index
rose 7.44, or 1%, to 779.23.
Elsewhere in North American equities, the
Toronto Stock Exchange 300
soared 132.32, or 2%, to 6895.70 and the
Mexican Stock Exchange IPC Index
jumped 74.88, or 1.5%, to 5055.76.
Monday's Company Report
Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.
jumped 2 5/8 to 78 1/4 after it unveiled its most-recent Pentium III line of microprocessors and the Intel 810E chipset, which enables ordinary Celeron-chip PCs to be upgraded to use Pentium III chips. Intel validated a statement made by
that it pushed back the 820 Chipset debut as a result of "platform validation issues that may result in memory errors." Intel said that it developed two Pentium III processors, operating at 533-megahertz and 600-megahertz clock speeds that work with a faster 133-megahertz bus, the data nucleus, which exchanges data between components.
Rambus plummeted 12 1/16, or 16.9%, to 59 1/16 after underwriter
Morgan Stanley Dean Witter
downgraded the shares to outperform from strong buy and
cut them to neutral from buy.
Mergers, acquisitions and joint ventures
slid 5/8 to 14 3/16 after it said it is buying
business for $275 million. Shares of Kellogg fell 5/16 to 36 11/16.
hopped 1 1/16 to 82 15/16 after it announced that it would pay
Florida Power & Light
roughly $78 million for
geothermal power plant. The deal is expected to close in October.
skidded 7/16 to 46 1/4 after it said that it bought a 40% interest in online women's consumer site the
Women's Consumer Network
. The transaction calls for CBS to provide $50 million worth of advertising for the Network over its various media outlets including television and radio. CBS said the its radio division
would receive a portion of the interest. Shares of Infinity climbed 1/2 to 27 3/16.
advanced 1 5/16, or 12.9%, to 11 7/16 after it said it would provide
with chips that would power future portable music players. Cirrus said its new
Internet audio chips would energize Microsoft's
Windows Audio Media
format, possibly by Christmas. Microsoft mounted 1/2 to 91 7/16.
announced an expansion of their $16 billion technology services pact, adding a $6 billion deal in which IBM will be a key supplier of computer services to Dell corporate customers. Dell popped 5/16 to 44 1/16, while IBM shares tumbled 2 to 123.
has agreed to pay $1.705 billion for some of its assets including seven of its power plants in Ohio and Pennsylvania. Orion, which is comprised of affiliates of
, was the highest bidder for the facilities, which went up for sale last year. The sale was an effort by Duquesne to leave the generating business. Shares of DQE bounced up 9/16 to 37 3/4.
hopped 3/8 to 24 7/8 after it announced plans to put its $700 million lighting, wiper-blade and fuel divisions up for sale, in an effort to concentrate on core businesses. The divisions, which has roughly 5,400 employees at 14 manufacturing plants, produce
wind shield blades and
fuel system parts.
on Friday said it was offering $26 a share for
, which is above
bid for Asarco. Asarco shares advanced 3 3/8, or 14.3%, to 26 15/16, while Phelps jumped 2 1/16 to 56 5/8.
Separately, Phelps' other takeover target
, bounced 15/16, or 5%, to 19 9/16 after it said that it was seeking other potential partners. Cyprus and Asarco were set to merge before Phelps launched an unsolicited bid for the two companies.
climbed 15/16 to 28 5/16 after it said that it and seven other telecom companies have joined to make a bid for a $1.9 billion
Federal Aviation Administration
plan to improve its communications infrastructure. The winner of the three-year contract, which has an option for a 12-year extension, would be responsible for replacing more than 35,000 circuits, improving switching and routing services.
, Sprint and
U S West
are all part of the bidding group.
advanced 11/16 to 43 3/4 after it said it is purchasing a 19.5% stake in
Hain Food Group
, a nearly $100 million investment, confirming a report in
The Wall Street Journal
. Hain slipped 2 3/8, or 8.3%, to 26 1/16 on the news.
Separately, Heinz said that it expects its fiscal 2000 earnings to meet the analysts' consensus estimate of $2.54.
If the companies agreed to sell off certain assets, an
might obtain the regulatory go-ahead, federal officials said, the
reported. MCI skidded 2 1/4 to 73 7/8, while Sprint shares slid 1/2 to 52 1/2.
soared 16 11/16, or 12.9%, to 145 1/2 on news that
Royal Bank of Scotland
was planning to launch a takeover offer for the bank. The Bank of Scotland has already expressed interest in acquiring NatWest.
bounced 2 9/16 to 56 3/8 after it said it will allow online sporting goods dealer
to sell its full product line, reversing an earlier stance of blocking Web-only stores from selling its goods,
The New York Times
Separately, Fogdog Sports announced its plans for a $60 million IPO.
Credit Suisse First Boston
Thomas Weisel Partners
Warburg Dillon Read
are serving as underwriters for the deal.
Home shopping network
advanced 1 3/4 to 27 7/8 after it said it finished the $28 million sale of two Houston television stations to privately held
and will use the proceeds for business growth. ValueVision said that, as a result of the sale, it would assume a third-quarter pre-tax gain of $22 million, bringing the company's cash to about $290 million. The latest deal will allow the company to join
in an effort to re-brand its TV shopping network as
and its online shopping site as
Earnings/revenue reports and previews
popped 3/4, or 5.4%, to 14 9/16 after it warned that it expects third-quarter revenue and earnings to fall short of analyst estimates due to fewer surgical procedures and competitive pressures. Osteotech said it expects earnings of 15 cents to 17 cents a share, well below the 10-analyst estimate of 24 cents a share, and lower than the year-ago 19 cents. The company said it expects to return to more favorable earnings growth in the fourth quarter.
Offerings and stock actions
, parent of
, mounted 5/16 to 35 1/2 after it said it would buy back up to 15 million shares, or about 5% of the total outstanding.
mounted 3/8 to 82 9/16 after it said it set a 2-for-1 stock split to be paid Nov. 8 to shareholders of record Oct. 8.
slid 9/16 to 16 3/16 after
cut its fourth-quarter earnings estimate to 3 cents a share from 13 cents and its fiscal 2000 estimate to $1.05 from $1.25.
mounted 1 1/4, or 6%, to 22 1/8 after Merrill Lynch upped its rating to a near-term accumulate from neutral.
jumped 6 7/16, or 5.6%, to 119 15/16 after
Donaldson Lufkin & Jenrette
upped its rating to buy from market outperform.
climbed 1 1/8 to 60 1/2 after
started coverage of the stock at buy with a price target of 76.
advanced 2 1/8, or 8.5%, to 27 after
U.S. Bancorp Piper Jaffray
rolled out coverage of the stock as a strong buy and set a price target of 34.
climbed 5/16 to 26 1/4 after DLJ upgraded its shares to top pick from buy, while lowering its rating on
to buy from top pick. Shares of Phillips stumbled 1 1/16 to 48 7/16.
Expeditors International of Washington
fell 15/16 to 36 after Merrill Lynch lowered its rating on the stock to near-term neutral and long-term accumulate from near-term accumulate and long-term buy.
hopped 2 3/16, or 5.5%, to 41 9/16 after J.P. Morgan upped its rating on the shares to buy from market perform.
climbed 7/8 to 38 after
Credit Suisse First Boston
raised its rating on the shares to strong buy from buy.
was unchanged at 25 1/8 after SG Cowen cut its rating to neutral from buy. Cowen cut its fiscal 2000 earnings estimate to $2.25 from $2.35 and its fiscal 2001 estimate to $2.60 from $2.77.
bounced up 1 1/2 to 33 9/16 after PaineWebber raised its price target from 44 to 36, while maintaining its buy rating.
leaped 4 7/8, or 21.2%, to 27 13/16 after Goldman Sachs upped the shares to trading buy from outperform.
slid 2 1/16 to 40 after Morgan Stanley Dean Witter upped its price target to 50 from 42.
hopped 1 3/16 to 30 3/16 after Credit Suisse First Boston raised its rating on the share to a strong buy from a buy.
climbed 5/16 to 37 1/4 after
upgraded the shares to buy from outperform.
advanced 1 1/4, or 11.1%, to 12 1/2 after
Salomon Smith Barney
upped its rating on the stock to buy from neutral.
climbed 7/8, or 5.3%, to 17 1/4 after Morgan Stanley upgraded it to a strong buy from outperform.
advanced 1 to 26 1/2 after
upped its rating to buy from a long-term buy.
hopped 1 11/16 to 57 1/4 after J.P. Morgan raised its rating on the shares to a buy from market perform.
fell 11/16 to 44 after
Banc of America Securities
upgraded its price target to 56.
bounced up 2 to 120 after said it launched a $50 million fund to invest in European-based Internet companies seeking early-stage financing.
advanced 15/16 to 35 1/16 after it said
it approved its repurchase of 135 million Liberty shares. Shares of AT&T climbed 1 to 43 5/8.
hopped 1 9/16, or 5.1%, to 32 3/16 after it announced its plans to cut business divisions and possibly divest eight noncore units, which account for 9000 employees. The company said the restructuring changes would not impact its fiscal 1999 and 2000 estimates of $1.50 and $2.16 respectively.
climbed 2 3/16, or 19.8%, to 13 3/16 after it named Tom Rogers, president of
, chairman and CEO of Primedia, confirming a report in today's
New York Times
stumbled 3 3/8, or 14%, to 20 5/8 after researchers said that studies are indicating that AIDS drugs are failing to effectively suppress the disease, reported in
. Trimeris is the maker of an experimental infusion inhibitor called
, which makes reverse transcriptase inhibitor
, fell 7 1/4, or 9.4%, to 69 9/16.
union said its members approved a new four-year contract with
. According to the union, 86% of its 75,000 members favored the agreement. The contract calls for a 3% wage increase in each of the four years, a $1,350 signing bonus, higher pensions and better job security. Shares of DaimlerChrysler mounted up 1 1/8 to 69 1/2.