Nasdaq Composite Index
tried to close above 3000, but a stiff bout of selling hit the market beginning around 1:45 p.m. EST and scuttled the gauge's plans for making history today. The Comp closed roughly 18 points short of that historic level, although it did hit 3000 and trade above that level for a good chunk of the session before the midafternoon selloff. The index made a push in the final hour of trading to close above 3000, but it couldn't muster enough juice to make it happen. Nevertheless, the Comp did close at an all-time high.
The Comp advanced 13.95, or 0.5%, to 2981.60. It traded as high as 3014.84 intraday.
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Helping the Comp's cause were semiconductor stocks. The
Philadelphia Stock Exchange Semiconductor Index
soared 2.9%. Meanwhile, computer makers, which were also a nice boost for the Comp for a good portion of the day, lost a lot of their steam in the afternoon. The
Philadelphia Stock Exchange Computer Box Maker Index
rose 0.3% to 295.73 but ended well off its intraday high of 303.01.
Internet stocks didn't help the Comp's historic cause as they spent the majority of the session underwater.
TheStreet.com Internet Sector
index gave up 9.08, or 1.2%, to 752.77.
Red Hots index rose 3.02, or 1.25%, to 245.19. The 20-stock index tracks action in particularly volatile stocks and is meant to measure so-called hot money.
Dow Jones Industrial Average
succumbed to an even bigger turnaround than the Nasdaq. After trading as high as 10,751.88 during the session, the Dow slumped 66.67, or 0.6%, to 10,581.84.
Peter Cardillo, chief strategist at
, pointed to the Dow's recent run-up and said today's decline was a matter of profit-taking emerging. Cardillo said that every time the Dow reaches the 10,650-to-10,700 area, it runs into resistance.
Cardillo said the stock market has already discounted a 25-basis-point interest-rate hike Nov. 16, when the
Federal Open Market Committee
holds its next meeting.
The strategist said he sees the Dow going to 11,200 by year-end if the FOMC hikes by 25 basis points at its November meeting and if they take a neutral stance. Until the Nov. 16 FOMC meeting, he sees the Dow staying in a trading range and churning.
fell 6.38, or 0.5%, to 1347.74. It peaked intraday at 1369.39.
gained 0.57, or 0.1%, to 432.39.
Financial services sector indices ended higher, but well off their best levels of the day. The
Philadelphia Stock Exchange/KBW Bank Index
rose 0.4%; the
American Stock Exchange Broker/Dealer Index
added 0.5%; and the
Nasdaq Financial-100 Index
The 30-year Treasury bond advanced 16/32 to 99 22/32, yielding 6.15%.
Neither economic data nor a
this morning had much of an impact on stocks or bonds. (
The New York Times
covered the speech in a
Stephen Shobin, chief technical analyst at
, sees more rallying ahead for the market, perhaps into mid-January. But he thinks the overall correction in the market isn't complete.
Among some of the reasons he cited for the market to continue to rally:
, which he thinks is the best bellwether for the market, continues to act well; medium-term momentum is oversold; bonds and financials have stabilized; and seasonality is favorable.
On the flip side, the technician also put forward his reasons for his view that the overall correction isn't over. Among some of the host of reasons: Breadth and volume ratios "lack stampede credentials"; the
Dow Jones Transportation Average
acts poorly; the bond hasn't completed a base; and "dollar/yen looks downright precarious."
As for the financials, (which closed well off their highs today and have been on a tear lately) Shobin said his guess is that the financials will act much like the basic materials stocks did earlier in the year when they made huge advances over about one to four weeks and "then became lethargic." Going forward, he said he wouldn't single out the sector as a leader.
New York Stock Exchange
trading, 904.6 million shares were exchanged while advancing stocks beat decliners 1,652 to 1,348. On the
Nasdaq Stock Market
, 1.24 billion shares traded while winners beat losers 2,073 to 1,879. New 52-week lows beat new highs 82 to 69 on the Big Board, while new highs beat new lows 199 to 108 in over-the-counter trading.
Among other indices, the Dow transportation average slipped 8.42, or 0.3%, to 2968.08; the
Dow Jones Utility Average
rose 1.47, or 0.5%, to 306.67; while the
American Stock Exchange Composite Index
gave up 0.45, or 0.1%, to 804.52.
Elsewhere in North American equities, the
Mexican Stock Exchange IPC Index
was closed today, while the
Toronto Stock Exchange 300
slipped 56, or 0.8%, to 7215.30.
Tuesday'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.
The Nasdaq's valiant, but unsuccessful, attempt to close above 3000 was helped by jumps in
which gained 23 5/8, or 42.1%, to 80, and recent public offerings
up 19 3/16, or 33.7%, to 76 1/8 and
which popped 19 3/8, or 11.1%, to 192 3/4. All were among the Nasdaq's top percentage gainers and were rare bright spots in the Internet sector.
Mergers, acquisitions and joint ventures
Barnes & Noble
rose 5/16 to 21 15/16 after it said it purchased a 49% interest in
Alaska Gov. Tony Knowles urged the
Federal Trade Commission
yesterday to block
proposed $26.8 billion takeover of
and said he suspended Alaska's talks over the deal with BP Amoco. Shares of BP Amoco fell 2 to 55 1/4, while Atlantic Richfield dropped 4 13/16, or 5.2%, to 87 3/8.
lost 1/4 to 28 5/8 after saying it agreed to its largest divestiture yet, the sale of
Warner Electric Industrial Products Group
and most of
Warner Electric Industrial Motors and Controls
said it has obtained $100 million in fourth-round financing from
Martha Stewart Living Omnimedia
and others, which will contribute to the company's expansion into 20 new locations in 2000. Shares of Amazon slid 2 11/16 to 66 7/16, while Martha moved up 7/16 to 34 5/16. The online grocer said
Kleiner Perkins Caufield & Byers
Hummer Winblad Venture Partners
are among the other investors funding the project.
rose 11/16 to 31 7/8 and
fell 1/16 to 19 after the companies said they have forged a tech agreement to offer consulting, tech support and other services.
Separately, Perot posted third-quarter earnings of 14 cents a share, in line with the five-analyst estimate and up from a year-ago 9 cents a share.
fell 3/8 to 51 15/16 after it said its television games division
inked a 10-year deal with
to air TV Guide's live horseracing and interactive wagering network. EchoStar fell 2 5/8 to 63 1/2.
gained 1/8 to 61 1/2 and
slipped 11/16 to 34 1/4 after shareholders gave their stamp of approval to the companies' planned $36 billion merger.
White Mountains Insurance
dropped 6 to 120 after saying it acquired $50 million worth of stock in affiliated
Financial Security Assurance
. FSA edged up 9/16 to 56 11/16.
rose 1/16 to 27 1/2 after it announced plans to sell 74 grocery stores in Texas and Oklahoma to
for an undisclosed amount. Shares of Kroger lost 3/8 to 21 1/4. The sale comes after Winn-Dixie posted disappointing first-quarter results last month.
Earnings/revenue reports and previews
fell 1 1/16 to 8 1/16 after it posted first-quarter earnings of 17 cents a share before charges, missing the three-analyst estimate of 20 cents a share, and the year-ago 31 cents.
Fresh Del Monte
rose 7/8, or 10.4%, to 9 5/16 after it posted third-quarter earnings of 21 cents a share, missing the five-analyst estimate of 25 cents and down from the year-ago 44 cents.
gained 1 5/8, or 6.5%, to 26 5/8 after it posted a third-quarter loss of 59 cents a share, narrower than the six-analyst estimate of a 68-cent loss but wider than the year-ago 42-cent loss.
dropped 5, or 24.1%, to 15 3/4 after it warned investors it would post a second-quarter profit of 8 cents to 10 cents a share, greatly missing the analyst estimate of 20 cents. The warning, which was the seventh in the last 11 quarters, prompted the resignation of the company's president and COO, Alan Lutz, who will be replaced by executive vice president Pearse Flynn.
sliced its rating on Newbridge to neutral from long-term buy.
joint newsroom wrote about
Newbridge earlier today.
gained 3, or 24.1%, to 15 1/2 after it posted third-quarter earnings of 29 cents a share, beating the 16-analyst estimate of 15 cents and up from the year-ago 58-cent loss.
joint newsroom, covered the results in a separate
climbed 7/16 to 31 13/16 after it reported fourth-quarter earnings of 36 cents a share, beating the 10-analyst estimate by a penny and up from the year-ago 31 cents.
lost 5/16 to 8 5/8 after it reported an unaudited net loss for the latest 13-week quarter of 6 cents a share. The seven-analyst estimate called for a loss of 26 cents a share. Since announcing preliminary second-quarter results in early October, Rite Aid has continued a review of its accounting, which was undertaken partly as a result of comments of the staff of the
. The company also continued to evaluate and make necessary adjustments for various matters identified as a result of that review.
climbed 5/16 to 16 9/16 after it reported third-quarter earnings of 13 cents a share, in line with the five-analyst estimate and up from the year-ago 5 cents a share.
climbed 1/4 to 11 5/8 after it reported fourth-quarter earnings of 40 cents a share, beating the single-analyst estimate of 36 cents and the year-ago 20 cents a share. The company said the latest quarter had compared with the comparable 13 weeks from the year-ago period.
Offerings and stock actions
got the cold shoulder from U.S. investors on its first trading day. The ADRs, each equivalent to 10 ordinary shares, were priced at $45 each by
Citibank Worldwide Securities Services
, a unit of
. Shares of Enel, which is now one of the largest publicly traded electric utilities in Europe, failed to excite, ending the day up 3/16 to 45 3/16.
Kaufman & Broad
gained 1/2 to 21 11/16 after it added 4 million shares to its buyback plan.
climbed 9/16 to 14 1/8 after saying it plans to spin off
. Mattel said
and others will contribute $37.5 million in initial funds to the plan.
was unchanged at 83 7/8 after saying its 30 million Class-A offering was priced at Monday's closing of 83 13/16.
Morgan Stanley Dean Witter
, Credit Suisse First Boston,
Deutsche Bank Securities
served as underwriters for the deal.
popped 21 7/16, or 53.3%, to 61 1/2 after it said its chairman and CEO Charles Johnson plans to acquire $1 million of the company's stock.
climbed 1 1/16 to 32 11/16 after it said it would buy back up to $500 million of its shares.
is expected to price a 25 million-share IPO for
between $11 and $13 tomorrow night.
U.S. Bancorp Piper Jaffray
raised its price target in
to 33 from 30. Air Express shares climbed 1/2 to 29 7/8.
Credit Suisse First Boston
initiated coverage of
with a hold rating. Shares of Colgate-Palmolive slipped 1 7/8 to 59 15/16.
CSFB also started coverage of
Expeditors International of Washington
as a strong buy, and
Circle Group International
as a hold. Expeditors International shares fell 1/8 to 38 1/8, while Circle Group added 1 to 25 1/16.
Morgan Stanley Dean Witter
started coverage of
with an outperform rating. Hertz skidded 1/4 to 43 3/8.
CSFB analyst Wendell Laidley started coverage of
with a buy rating and a price target of 105. Interwoven soared 4 3/8, or 5.3%, to 86 1/4.
upped its earnings estimates for
first-quarter 2000 to 88 cents from 79 cents and to $4.27 from $4.19 for full-year 2000. Micron Technology jumped 2 5/8 to 75 1/4.
Warburg Dillon Read
rolled out coverage of
with a buy rating and a price target of 21. Shares of Providence climbed 3/16 to 16 3/8.
Donaldson Lufkin & Jenrette
said it started coverage of
with a buy recommendation. SCI Systems popped 3 7/16, or 7%, to 52 1/2.
U.S. Bancorp Piper Jaffray
rolled out coverage of
with a strong buy rating. SmartDisk shares bounced 2 3/16 to 55 3/16.
upped its price target on
to 125 from 85 and reiterated its market outperformer rating. STMicroelectronics shares were jumping 10 5/16, or 11.4%, to 100 1/8.
Warburg Dillon Read raised its price target on
to 70 from 69.
raised its intermediate rating on the stock to accumulate from neutral. Shares of Teva retreated 1/16 to 49 3/16.
Goldman Sachs upgraded
to its recommended list from market outperformer. USA Networks mounted 1 11/16 to 44 7/8.
bounced 2 11/16, or 6.6%, to 37 5/8 after it said it plans to pay the federal government $100 million to satisfy terms of a deal to cover its diagnostic manufacturing operations in Lake County, Ill. Earlier today,
joint newsroom reported on
slid 15/16 to 75 1/4 on new that it is expected to announce plans to discontinue its
brand, due to decreasing sales in recent years,
The Wall Street Journal
reported. According to the
, DaimlerChrysler could cut back on costs by axing Plymouth, without affecting its high-volume product lines.
General Electric skidded 15/16 to 128 7/16 after it said chairman and CEO John Welch plans to retire in April 2001. A company spokesman said that it has not named a replacement for Welch.
joint newsroom wrote about it in a separate story
received a blow to its stock price after the
Food and Drug Administration
rejected its AIDS treatment
. Gilead shares plummeted 14 3/16, or 22.4%, to 49. TheStreet.com wrote about the
reaction to the FDA's rejection earlier today.
stumbled 2 1/2 to 74 3/4 after it said it received
approval for its once-a-day form of AIDS treatment
. Prior to the approval, the drug needed to be taken twice a day.