The Bull Market Report: The Week That Was - a
Weekly Recap
WASHINGTON--(BUSINESS WIRE)--Oct. 24, 1998-- The following was released
today from The Bull Market Report:
MONDAY: ANOTHER GOOD DAY ON WALL STREET
Stocks rose Monday as investors bet on good earnings news ahead of ''Super Tuesday,''
when some of the biggest companies reported their earnings. The Dow was up 50 or 0.6%
but Nasdaq was HUGE, rising 1.7%. Wall Street confidence again shifted to strength after
the Federal Reserve's second cut in interest rates last week. One of Monday's big movers
was Capital One (NYSE: COF - news) which was up 7% to $94 on news that they not only
can sell credit cards better than anyone else, but they are involved in the telecommunications
business and selling cellular phones to their members as well. We added Capital One to our
CORE HOLDINGS list last week.
Mindspring (Nasdaq: MSPF - news) up 9% to $30. The bull looks like it is back for a while!
IN THIS ISSUE YOU WILL FIND:
$$$$$ NETSCAPE (Nasdaq: NSCP - news) AND REALNETWORKS (Nasdaq: RNWK - news)
DISTRIBUTION READY $$$$$ INTEL TO BUY SHIVA FOR $185 MILLION $$$$$ EBAY JUMPS 26% ON
ANALYST'S COMMENTS $$$$$ TELLABS (Nasdaq: TLAB - news) REPORTS BEST QUARTER IN COMPANY
HISTORY
THE ANSWERMAN DEPARTMENT
UPGRADES AND DOWNGRADES DEPARTMENT
(There are anywhere from four to ten articles each day.)
TUESDAY: DOW EXTENDS RALLY TO FIFTH STRAIGHT DAY
A mixed day: Dow up a bit, Nasdaq down a bit, S&P unchanged and small stocks rocked again - up 1.7%.
IBM (NYSE:IBM - news) was solid and is probably ready for a stock split. America Online (NYSE:AOL - news) is certainly
ready for a split - probably 2 for 1. At the stockholders meeting, they will be increasing their authorized shares by a factor of
three and their board of directors meets later that same day. Last time this happened, the board voted to split the stock
immediately that day
SPECIAL NOTE: The Bull Market Report is sponsoring a seminar on Stocks and Options in Vail, Colorado on December
5-6.
WEDNESDAY: NASDAQ UP BIG, LED BY MICROSOFT AND INTEL
The markets were mixed today with the Dow and S&P doing nothing much but the Nasdaq shooting 36 points higher. That's
180 DP's(1). The market moved behind the huge moves in Microsoft (Nasdaq: MSFT - news), Intel (Nasdaq: INTC - news),
Dell (Nasdaq: DELL - news), Cisco (Nasdaq: CSCO - news) and MCI WorldCom (Nasdaq: WCOM - news), the top five
market caps on Nasdaq. These stocks are a major part of the S&P 500 too, so in actuality, most stocks didn't do too well
today. But all in all, it was a fairly calm day with not much activity anywhere.
(1) Dow equivalent Points
THURSDAY: STOCKS EXTEND WINNING STREAK TO SEVEN SESSIONS
The DOW came back from a 90 points down to post its seventh consecutive gain. Advances led declines 3-2 on lighter volume
of 750 million shares on the New York Stock Exchange.
Microsoft had a great day, finishing at $110 even, up 3 1/2 points. GE (NYSE: GE - news), Merrill Lynch (NYSE: MER -
news), DELL and Citigroup (NYSE: CCI - news) all had strong days, finishing 2.5 to 3% higher on the day. The internet
stocks were big with Amazon (Nasdaq: AMZN - news) and Yahoo (Nasdaq: YHOO - news) leading the way again. Yahoo is
within a whisker of an all-time high. Don't be afraid to buy these two stocks. Just don't jump in all at once. We LOVE eBay as
we have discussed many times in this forum (Nasdaq: EBAY - news) and think it has a shot of going to $100 in the next year.
We want to have a lot of this stock is it becomes very big. So we set up the following plan: We originally bought shares at 38
and then set a good-until-cancelled order with our broker to buy more at 42 stop, 46 stop, 50 stop and 54 stop. Guess what?
We have a bunch of shares now at an average price of 44 and the stock closed today at 51 1/2. We will buy more ONLY if it
hits 54, then 58, etc. We want to have a lot of this stock if it hits $100 within a year. If it doesn't, then we will keep our
positions small. You can use this same concept with Yahoo, starting today at this level of $122, and adding more every $10
higher (or $20 - you choose the increment.) If it goes lower, you don't lose too much. If it IS the next Microsoft as Mary
Meeker of Morgan Stanley has written, you will have a sizable number of shares if it continues to grow and lead the internet
revolution.
We got an email from a reader tonight that wanted to know our thoughts on where the market is headed. We have been
concerned this past month or so, just like everyone else. We thought we were in good shape this summer and then from July
17th, the market has been down sharply and quite rocky. Through most of this we have been bullish for the long term, for the
five and ten year period of time that we feel investors should be looking at. From time to time we have suggested that short
term traders might want to take a breather from this market but long term investors shouldn't even blink an eye. Our philosophy
is to buy the best quality companies in industries that are growing at rates faster than most other industries. This is why we like
Microsoft and Cisco so much.
We have certainly taken our share of grief since we have continued to be bullish during this latest period. This appears to be a
necessary evil when markets are so volatile and things are so uncertain. But you know what? Markets are ALWAYS uncertain.
They just appear to be MORE uncertain now; but that's an illusion. We say again: Markets are always uncertain. People are
always afraid of losing money. Period. It has been said that Wall Street runs on fear and greed and when investors are afraid
that they are going to lose capital, they do irrational things - (like selling Proctor and Gamble at $64, or Cisco at $41 on
October 8th, just two weeks ago.)
So, do we know where the market is headed? Certainly not - in the short term. But in the long term? We think so. We think it
is headed up, much higher than it is now. And for the past 75 years it has been doing just that, so we're going with history on
this one!
FRIDAY: U.S. STOCKS FALL A BIT IN QUIET TRADING
Blue-chip stocks closed lower Friday in a slight decline after seven consecutive sessions of gains.
Big stocks today: Qualcomm (Nasdaq: QCOM - news) up 6% to $54 and Mindspring (Nasdaq: MSFP - news) up 7% to
$37. This was a $25 stock a week ago! Microsoft took a breather today though, down over 3 1/2 to $106.40.
The above are brief summaries of the reports that were issued via email during the past week. For the complete reports, go to
the website and look at the Archives.
The Bull Market Report is A FREE FINANCIAL NEWSLETTER delivered via EMAIL ONLY, after the market closes each
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Contact:
Bull Market Report
Jack Eckmann 530/636-8155
More Quotes
and News:
MSFP - news; MSPF - news
Amazon Com Inc (Nasdaq:AMZN - news)
America Online Inc (NYSE:AOL - news)
Capital One Financial Corp (NYSE:COF - news)
Cisco Systems Inc (Nasdaq:CSCO - news)
Citigroup, Inc (NYSE:CCI - news)
Dell Computer Corp (Nasdaq:DELL - news)
eBay Inc (Nasdaq:EBAY - news)
General Electric Co (NYSE:GE - news)
Intel Corp (Nasdaq:INTC - news)
International Business Machines Corp (NYSE:IBM - news)
MCI WorldCom Inc (Nasdaq:WCOM - news)
Merrill Lynch & Co Inc (NYSE:MER - news)
Microsoft Corp (Nasdaq:MSFT - news)
Netscape Communications Corp (Nasdaq:NSCP - news)
Qualcomm Inc (Nasdaq:QCOM - news)
RealNetworks Inc (Nasdaq:RNWK - news)
Tellabs Inc (Nasdaq:TLAB - news)
Yahoo Inc (Nasdaq:YHOO - news)
Related News Categories: banking, computer hardware, computers, insurance, ISDEX, networking, retail,
semiconductors, software, telecom
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