Oil, tech stocks on the rise
By JOSH HAMILTON
NEW YORK
Sunday 1 April 2001
United States stocks rose as some money managers snapped up oil shares, such as Exxon Mobil, and technology stocks, including Cisco Systems and Oracle, on the last day of a losing quarter.
The Nasdaq Composite Index is down 26 per cent in 2001 and has fallen four straight quarters for the first time in almost 17 years. It has dropped 64 per cent from its record, set a year ago.
The Nasdaq rose 19.69 points, or 1.1 per cent, to 1840.26, rebounding from a 1.4 per cent loss. The Standard & Poor's 500 Index gained 12.38 points, or 1.1 per cent, to 1160.33. The Dow Jones Industrial Average climbed 79.72, or 0.8 per cent, to 9878.78 points.
More than two stocks rose for every one that fell on the New York Stock Exchange. About 1.2billion shares traded on the Big Board, 1.9per cent more than the three-month daily average.
The S&P 500 has dropped 12 per cent this year. The Dow lost 8.4 per cent in the first quarter and snapped a two-quarter winning streak that was sparked by investors' search for alternatives to plunging technology shares. For the week, the Nasdaq lost 4.6 per cent and the S&P 500 advanced 1.8 per cent.
Oil stocks rose on expectations that high crude oil and natural gas prices will mean increased profits for the first quarter.
Trader Eric Thorne, who manages $US2 billion ($A4.1 billion) at Bryn Mawr Trust Co, in Philadelphia, was cautious however. "We've been doing a little buying," he said.
Analysts surveyed by First Call/Thomson Financial expect S&P 500 companies' earnings to drop 8 per cent this quarter and 6 per cent in the second quarter. They see a rebound to 1.9 per cent growth in the third quarter and 12.9 per cent in the fourth.
-BLOOMBERG
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