<font color=blue>MARKET SNAPSHOT--9:59--Fourth day of losses for Nasdaq
Cyclicals help Dow gain ground
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 9:59 AM ET Oct 4, 2000
NEW YORK (CBS.MW) - The Nasdaq wallowed in the minus column Wednesday in its fourth straight day of declines while the Dow Industrials headed north, sustained by the positive action in many of its old-economy components.
The Nasdaq's has seen triple-digit losses during each of the past three trading sessions and shaved 8.5 percent of its value. The wanton liquidation of many Nasdaq stocks has taken its toll on big-name stocks, removing leadership from the market.
Amid the fear surrounding profit growth and valuations of tech companies, investors have set their sights on other areas of the market - the silver lining being that money is staying in the market instead of exiting into bond funds, for example.
The Dow Jones Industrials Average ($DJ) added 51 points, or 0.5 percent, to 10,770.
The Nasdaq Composite ($COMPQ) slipped 43 points, or 1.3 percent, to 3,412 while the Nasdaq 100 Index ($NDX) shaved 35 points, or 1.1 percent, to 3,317.
The Standard & Poor's 500 Index ($SPX) shed 0.1 percent while the Russell 2000 Index ($RUT) of small-capitalization stocks fell 0.5 percent.
Volume stood at 103 million on the NYSE and at 214 million on the Nasdaq Stock Market. Breadth was sloppy, with losers pouncing on winners by 10 to 9 on the NYSE and by 18 to 11 on the Nasdaq.
Specific movers
Profit warnings continued to pour in. Knight Trading Group (NITE) dropped $5.06 to $27.13 after warning that third-quarter earnings will be lower-than-expected due to a difficult environment in late summer - punctuated by low volatility and Nasdaq declines - as well as expenses in building its international operations. Knight now sees earnings-per-share in the range of 13 to 16 cents versus the First Call estimate of 31 cents a share.
And late Tuesday, Computer Associates (CA) warned that second-quarter earnings are expected to come in between 50 to 54 cents a share, missing the First Call estimate of 56 cents a share. The stock is a component of the Goldman Sachs Computer Software Index ($GSO).
In the business-to-business arena, SciQuest (SQST) said third-quarter losses will be worse than anticipated at 43 to 45 cents a share versus the First Call estimate of a loss of 37 cents a share. The stock is a component of Merrill's B2B (BHH) Holdrs, which fell 1.9 percent following an 11.2 percent plunge on Tuesday.
IBM (IBM) fell another $1.38 to $109.19 after being stung by a 6.2 percent loss on Tuesday. Merrill Lynch tweaked third-quarter earnings-per-share estimates on IBM to $1.07 from $1.08 following the Computer Associates warning. But the brokerage raised fourth-quarter estimates on Big Blue to $1.50 from $1.49.
Oracle (ORCL) lost $6.50 to $63. Robertson Stephens lowered its rating on the stock to a "long-term attractive" from a "buy" rating based on current valuation levels and near-term product transition risks in software applications. Merrill said its views on Oracle hadn't changed following the company's analyst meeting but said the stock's valuation will cap significant material upside moves in the near-term.
In merger news, Firstar Corp. (FSR) said it's purchasing US Bancorp (USB) in an agreement valued at $21.2 billion, creating the 8th largest bank holding company in the U.S. The deal is expected to close in the first quarter of 2001. US Bancorp added 19 cents to $23.38 while Firstar slipped $3.25 to $19. Both stocks are components of Merrill Lynch's Regional Bank Holdrs (RKH), which added 0.8.
Treasury action
In the Treasury arena, prices traded higher in the aftermath of the Fed's policy-setting meeting Tuesday.
The 10-year Treasury note added 7/32 to yield ($TNX) 5.86 percent while the 30-year bond gained 10/32 to yield ($TYX) 5.92 percent.
In economic news, Wednesday will see the release of August factory orders, expected to rise by 1.7 percent. View Economic Preview, economic calendar and forecasts and historical economic data.
In currency markets, dollar/yen edged up 0.1 percent to 108.87 while euro/dollar shed 0.1 percent to 0.8746. The European Central Bank will meet to decide on monetary policy Thursday, with market participants anticipating a small nudge up in rates.
Julie Rannazzisi is markets editor for CBS.MarketWatch.com. |
