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Market Summary June 20, 2001
Posted Daily Between 5 and 6:30 PM EST
by Lance Lewis
Market Finally Puts Together A Rally
Asia was mixed last night with Japan finally managing to close
positive. Europe was down a touch and our futures were lower
after several warnings last night. We gapped down near
yesterday’s low and then proceeded to bounce. That rally lost
steam right around yesterday’s highs, and we slid back near the
lows in the afternoon till another rally began in the last couple
hours to carry us out near the high of the day. Volume picked up
again (1.3 bil on the NYSE and 2.1 bil on the NASDAQ.) The
heavier volume of the last couple days doesn’t exactly jive with
everybody’s call for a quiet lazy summer. Breadth was slightly
positive on both exchanges. The top sector winner was the
Internuts as the GIN rose 8 percent. The top sector loser was the
golds as the HUI lost 5 percent.
We had a slew of warnings last night. First TLAB and semi
testing equipment maker TER warned last night. Then this
morning, we had a big warning out of semi maker Infineon (IFX)
over in Europe who also cut their cap ex by about $850M. We
also got a warning out of semi equipment maker FSII. On the
back of all that, the semis were hit the hardest (down about 5
percent at the low), but the late-day surge in the rest of the market
managed to drag them off their lows too and cut the loss to less
than a percent. I’m leaving early today so I am going to keep it
short and sum up today’s tech action in one word: chaos. Bad
news appeared to matter to those who coughed it up, but the
general market seemed to get up the courage to finally ignore it
somewhat for the day. However, the bounce was pretty feeble
considering the current oversold condition of the
market. Financials were higher on the day with the BKX rising a
percent, and the XBD 2 percent. GE jumped 4 percent.
Oil fell another buck and change. The XOI fell a percent, and the
OSX fell 2 percent. Gold lost a buck, and lease rates edged lower
again. The HUI fell 5 percent. The US dollar index ended up a
hair after trading higher early on in what could be a reversal day.
The euro rallied back just over 85 cents ahead of tomorrow’s ECB
meeting. Treasuries were a little higher once again. Uncle Al said
nothing of consequence on the Hill today.
Well, we needed a rally pretty bad today if we were going to avoid
a cliff diving event, and we finally got one. Maybe this is the
beginning of the FOMC bounce into next week? Maybe it’s just a
one-day wonder? We’ll find out tomorrow I guess. |
