MARKET SNAPSHOT
Nasdaq wobbles, blue chips mixed
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 1:02 PM ET Jun 12, 2000 NewsWatch
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NEW YORK (CBS.MW) -- Technology stocks were hit by a round of profit-taking Monday while blue-chip issues migrated close to the unchanged mark in another session of rangebound dealings.
"We're seeing more of the same consolidation that we witnessed last week," said Bryan Piskorowski, market analyst at Prudential Securities. The market continues to look to economic data as well as earnings pre-announcements for direction, he said.
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Updated:
6/12/2000 12:11:00 PM ET
Inside the tech arena, all sectors were dripping in red ink, led by computer software and Internet issues. The broader market saw nice advances in oil service, utility and bank stocks while retail, paper and biotech stocks declined.
The Dow Industrials shed 5 points to 10,609 at 1:26 p.m. On the downside were shares of McDonald's, Microsoft, Home Depot and Wal-Mart. Upside movers included Exxon Mobil, Philip Morris and Eastman Kodak.
McDonald's (MCD: news, msgs) fell 1 7/16 to 32 7/16, extending Friday's gains, which came on the heels of disappointing May sales. The company received two downgrades on Monday: Bear Stearns lowered its rating to "neutral" from "buy" while Robertson Stephens lowered the company to a "long-term attractive" from a "buy."
The Nasdaq Composite dropped 76 points, or 2.0 percent, to 3,798 while the Nasdaq 100 index fell 76 points, or 2.0 percent, to 3,684.
The Standard & Poor's 500 Index lost 0.3 percent while the Russell 2000 Index of small-capitalization stocks dropped 2.1 percent.
Volume came in at 446 million on the NYSE and at 790 million on the Nasdaq Stock Market. Market breadth turned negative, with losers beating winners by 14 to 13 on the NYSE and by 25 to 14 on the Nasdaq.
Separately, Trim Tabs reported that equity fund inflows rebounded to an estimated $15.3 billion over the five days ended June 8 -- with U.S. funds absorbing 91 percent of the inflows and aggressive growth funds capturing a hefty $6.6 billion. Flows early in the month are always the strongest, Trim Tabs notes. And while stocks market liquidity set a record last week, aided by a temporary slowing of new offerings, Trim Tabs said it expects new offerings will pick up in June.
Sector movers
An earnings warning from Citrix Systems sent the computer software sector sharply lower as investors continue to show zero tolerance for companies revealing earnings shortfalls.
Citrix (CTXS: news, msgs) plunged 43 percent, or 17 11/16 to 23 1/2, adding to Friday?s 20 percent drop, after announcing that it expects to report revenue in the range of $105 million to $110 million versus $94.4 million in the second quarter of 1999. And the company sees earnings-per-share in the range of 9 to 11 cents, well below the First Call estimate of 21 cents a share. The company said expansion of its core business within large enterprise accounts and within certain markets, including Asia, is progressing more slowly than expected. Citrix will announce final results on July 19. See full story.
The CBOE Computer Software ($CWX: news, msgs) Index, of which Citrix is a component, fell 4.5 percent. Also feeling the heat in the software sector were shares of Microsoft (MSFT: news, msgs), which fell 2 1/8, or 3.1 percent, to 66 11/16.
Biotech stocks came under pressure Monday, weighing on the performance of the Nasdaq and the Russell 2000 indexes. Alkermes (ALKS: news, msgs) plunged 14 3/32, or 26 percent, to 40 5/32 on news that Johnson & Johnson decided to terminate further development of a sustained-release formulation of erythropoietin based on Alkermes' ProLease drug-delivery technology. Alkermes is a component of Merrill's Biotech Holdrs (BBH: news, msgs), which fell 4.4 percent, as well as the Nasdaq Biotech Index ($IXBT: news, msgs), which also slipped 4.4 percent.
Motorola (MOT: news, msgs) shares added 1/4 to 35 1/4. The company's Network Solutions Sector won a $55 million contract to replace the Global System for Mobile Communication digital cellular network in China?s Hubei province. See full story. The stock is a component of the Philadelphia Semiconductor Index ($SOX: news, msgs), which shed 2.8 percent.
Separately, Altera (ALTR: news, msgs) and Motorola entered discussions to integrate Motorola's processor core technology into Altera programmable logic devices. See story. Altera shares backpedaled 1 5/16 to 108 5/16.
Shares of Corning rose 11 to 223 after the company said it expects better-than-expected earnings for the second quarter thanks to strong demand for its optical fiber and cable and flat panel glass products, among others. Corning (GLW: news, msgs) now expects to report earnings for the second quarter in the range of 78 to 80 cents a share, which compares to the First Call estimate of 69 cents a share. See full story.
Among other companies in the fiber-optic business, JDS Uniphase added 3 3/4 to 114 5/16 while Ciena (CIEN: news, msgs) rose 1 1/8 to 141. Both companies and Corning are components of Merrill Lynch's Broadband Holdrs (BDH: news, msgs), which rose 0.5 percent on Monday.
Boise Cascade (BCC: news, msgs) shares added 3/16 to 26 1/2 even as the company warned late Friday of lower-than-expected second-quarter results, citing weakness in its building products and office products units. Analysts surveyed by First Call had expected earnings of 71 cents a share.
The Philadelphia Paper Products Index ($FPP: news, msgs), of which Boise Cascade is a component, lost 2.0 percent.
Shares of Qualcomm (QCOM: news, msgs) added 2 3/16 to 81 1/4 on news that China Unicom will use the company?s third-generation CDMA wireless telecommunications system.
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Intl' Indexes
Government prices were a sliver higher in extremely rangebound dealings.
The 10-year Treasury note added 6/32 to yield 6.10 percent while the 30-year bond was flat to yield 5.89 percent. See Bond Report.
No economic data is set for release Monday. The most significant piece of news will be out Tuesday with the retail sales report, and Wednesday, with the consumer price index. See Economic Preview, economic calendar and forecasts and historical economic data.
In the currency arena, dollar/yen shed 0.1 percent to 106.66 while euro/dollar edged up 0.1 percent to 0.9547.
In the commodity market, July crude jumped $1.33 to $31.55 while the Bridge CRB index slipped 0.90 to 224.09. View latest commodity prices.
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Julie Rannazzisi is markets editor for CBS.MarketWatch.com. |
