Tech Set For Advance
Dawn Patrol
November 01, 1999
by Loren Fox
Normally, after the big advances in technology shares that we saw on both Thursday and Friday, the market could be expected to slip on Monday as investors take some profits off the table. But these past two days featured such a breakout in volume and such gains in the stock indexes that the rally could well carry over into Monday. It's a rare euphoria that's gripping Wall Street--and it's not just an outgrowth of Friday's victory parade for the Yankees.
"People want to get into this market," Bill Meehan, chief market strategist at Cantor Fitzgerald, tells UpsideToday. Even Meehan, who hasn't been the most bullish of strategists, says, "We won't see a pullback of any significance in the near future."
The technology-heavy Nasdaq composite index rose 3.17 percent Friday, after its 2.6-percent gain on Thursday. That left the Nasdaq at a record 2,966.43, which topped the previous all-time high of 2,915.95 on Oct. 11. It also leaves the Nasdaq within striking distance of 3,000.
That's a nice round number, but it doesn't represent any significance beyond the fact that hitting 3,000 will trigger a two-hour special on CNBC. "The significance is in making new highs," says Meehan.
While the Street expects the Federal Reserve to raise interest rates when it meets in November, investors are now happily predicting it should be the last rate hike for a while. That's fueling optimism and a rally in the bond market. The benchmark 30-year Treasury bond, which is a proxy for interest rates, ended Friday at a three-week low of 6.16 percent, down from 6.25 percent a day earlier.
The Dow could also get a boost on Monday when the 30-stock index straps on the booster rockets of four new growth-oriented stocks, including the addition of Microsoft Corp. (MSFT), Intel Corp. (INTC) and SBC Communications (SBC).
On the economic front, traders on Monday will be watching the 10 a.m. EDT release of the National Association of Purchasing Management's monthly purchasing managers' index. Economists expect the index to come in at 55.9 for October, down from 57.8 in September. The week's big economic report will be Friday's monthly figures on payrolls, the unemployment rate and average hourly earnings.
Company Happenings: There are still some earnings reports that will trickle in on Monday. Communications equipment maker Cabletron Systems (CS) reports its third quarter, and analysts are looking for earnings of 10 cents a share.
Broadband services provider NextLink (NXLK) reports its third quarter; a loss of $1.29 per share is anticipated. And Internet search engine GoTo.com (GOTO) reports its fourth quarter; a loss of 28 cents a share is expected.
IPO Patrol: Another slew of tech-related initial public offerings are slated to start trading some time this week. Among the higher-profile deals is Tickets.com (TIXX), the online ticket seller that is expected to price its IPO between $7 and $9 per share. Also, Cobalt Networks (COBT), a provider of Linux-based Web servers, is expected to price at $14 to $16 a share. And Be Free (BFRE), an online marketing services company, is seen pricing its IPO at $8 to $10.
Friday continued the hot market for Internet-related IPOs. The biggest debut of the day was Akamai Technologies (AKAM), which provides technology to speed the delivery of online content. Akamai, with backers such as Microsoft, priced its IPO at $26 a share and the stock rose a whopping 458 percent in its first trading day (the fourth-best debut ever) to close at $145.19.
Loren Fox is finance editor at Upside Media.
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Dow Jones Industrial Avg. 10729.86 +107.33
S&P 500 1362.93 +20.49
NYSE Composite 625.47 +7.32
AMEX Composite 800.80 +7.25
NASDAQ Composite 2966.43 +91.21
Russell 2000 428.64 +5.83
30-year Treasury Bond 6.15 -0.09
last updated 10/29/1999 15:00
Quotes are delayed at least 20 mins.
Most Actives
(15 most actively traded stocks on the NYSE, Nasdaq and AMEX)
Gainers
(15 biggest winners on the NYSE, Nasdaq and AMEX)
Losers
(15 biggest losers on the NYSE, Nasdaq and AMEX)
Upgrades/Downgrades
Internet
N/A
N/A
Telecom Equipment
1110.61
+34.22
Computer Hardware
840.59
+27.72
Computer Networks
1195.98
+22.36
Computer Peripherals
931.57
+30.64
Computer Services
1739.96
+62.46
Computer Storage Devices
380.98
+10.39
Semiconductors
845.52
+53.32
Software & Programming
1013.40
+42.08
Broadcasting & Cable TV
1366.97
+36.43
last updated 10/29/1999 14:58
Financial Info
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INTC
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SBC
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CS
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NXLK
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GOTO
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AKAM
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