U.S. Stocks Bounce On Bargain Hunting; Dead Cat Bounce Suspected
They even tell the sheep
PR NEWSWIRE - October 13, 2000 14:42
NEW YORK, Oct 13, 2000 /PRNewswire via COMTEX/ -- U.S. share prices were sharply higher Friday, easing immediate fears of a further selloff arising from higher oil prices and weakened earnings, Market News International reported.
At 1:30 p.m. ET, the Nasdaq Composite was up 147.88, or 4.8 percent, at 3,222.56, while the Dow Industrials were up 144.29, or 1.4 percent, at 10,178.87.
Putting the gains in perspective, the Nasdaq is still down 24 percent from early September, while the Dow Industrials, which lost 3.6 percent on Thursday alone, is 9.9 percent lower.
Dealers and analysts warn that underlying sentiment remains poor and that a further reversal on Monday is still possible.
A slowdown in the escalation of events in the Middle East helped cool oil prices and helped encouraged bargain hunters. November crude was down 36 cents at $35.70 per barrel. On Thursday a deadly attack on a U.S. destroyer and battles between Israelis and Palestinians darkened the market and sent oil as high as $37 per barrel. Yet trouble continued on Friday, as a bomb exploded outside the U.K. embassy in Yemen.
A strong 35 percent earnings gain from Gateway Computer helped ease fears that weak European demand would hurt computer manufacturers. Gateway was up 7.58 at 51.21 [GTW].
Communications equipment maker Juniper Networks and chip maker PMC-Sierra also posted strong results. Juniper was up 15 5/64 at 214 11/16 [JNPR] while PMC-Sierra was up 14 3/16 at 172 5/8 [PMCS].
Guru Abby Joseph Cohen of Goldman Sachs reaffirmed her optimism on the market, saying underlying strength in the U.S. economy will continue to underpin corporate earnings. Cohen maintained her year-end S&P 500 target of 1575. The S&P was last at 1360.95, up 31.17.
Largely overlooked were sharp 0.9 percent rises in the producer price and retail sales reports for September. Oil was behind the PPI jump and will likely be behind a further jump in next month's October report, but the absence of significant inflation at the consumer level is helping to contain worries. The consumer price report will be released next Wednesday, with early estimates centering on a 0.5 percent rise.
Financials, notable losers on Thursday, were notable winners on Friday. Citigroup up 3 3/16 at 49 15/16 [C], American Express up 2 3/16 at 54 1/16 [AXP], and Lehman Brothers up 8 3/4 at 120 13/16 [LEH].
Losers on the session included Internet advertiser DoubleClick, down 5 7/8 at 12 1/4 [DCLK] after missing estimates, and Union Carbide, down 1 3/4 at 34 13/16 [UK] after complaining about high raw material costs. Xerox, down 5/8 at 10 5/8 [XRX] near a 10-year low, denied rumors it will file for bankruptcy protection.
SOURCE Market News International |
