DJN: =DJ Tech Stocks Rally -2: 'Bulls, Bears And The Bewildered'
In addition to returning to upstart darlings, several large-cap tech stocks
enjoyed a significant boost during Wednesday's frenzied buying.
Especially strong were personal computer makers, including Apple Computer
Inc. (AAPL), which closed up 6.9%, and Compaq Computer Corp. (CPQ), which
finished up 4.9% in composite trading. Also, chip makers Intel Corp. (INTC)
and Applied Materials rallied, hitting 52-week highs.
Alan Ackerman, market strategist at Fahnestock & Co., attributed the rise in
tech stocks to the approach of the first-quarter corporate earnings season
in April. Several market watchers said investors are expecting strong
profits for leading Nasdaq companies.
Investors pushed up old-economy stocks Tuesday after General Electric Co.
(GE) said it expected first-quarter results to beat analysts' expectations.
A day later, they were done with the old economy and hoping to ride tech
stocks, Ackerman said.
But given the market's recent performance, Ackerman acknowledged that the
upward momentum in the Nasdaq could change at any time. He called the
continuing gap between the Dow Jones Industrial Average and the Nasdaq a
"behavioral disorder" that will persist as long as investors keep moving
money in and out of various sectors.
"The market currently consists of three camps: bulls, bears and the
bewildered," Ackerman said. "I've got one foot in each of the three."
-Marcelo Prince; Dow Jones Newswires; 201-938-5244
-Peter Loftus; Dow Jones Newswires; 201-938-5267
-Scott Eden; Dow Jones Newswires; 201-938-5253
(END) DOW JONES NEWS 03-22-00
05:01 PM
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