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To: SecularBull who wrote (14853)	4/18/2000 5:01:00 PM
From: stockman_scott	Respond to of 35685

Nasdaq soars a record 254 points, techs help Dow By Kristin Roberts <<NEW YORK, April 18 (Reuters) - Technology stocks powered higher on Tuesday, driving the Nasdaq composite to its biggest one-day point gain ever as strong earnings renewed investors' hopes for profits in the ``new economy.' Wall Street's bulls roared back to reverse the market's meltdown, completely recouping Friday's historical loss of 355 points, in just two days of trading. Solid earnings reminded investors of strong fundamentals among U.S. companies while relatively low prices encouraged aggressive buying. But many traders were surprised by the size of the rally, saying they expected stocks to ease back and retest recent lows before spiking higher in any sustainable advance. ``I'm very bullish longer term because the fundamentals are intact,' said Tony Dwyer, chief market strategist at Kirlin Holdings. ``But before I raise my asset allocation, I want to see how they retest their lows.' Biotech and Internet stocks helped lift the Nasdaq composite (^IXIC - news) 254.41 points, or 7.19 percent, to 3,793.57. The gauge logged its best single-day point gain, surpassing Monday's record gain. Nasdaq has climbed 471 points in two days to break through the 3,700 level again. Traditional technology leaders pushed higher with Intel Corp. (NasdaqNM:INTC - news) up 6 at 129 ahead of its earnings announcement due after the bell. That strength jolted the Dow Jones industrial average (^DJI - news) up 189.91 points, or 1.75 percent, to 10,767.42. Bank and drug stocks also climbed to offset the Dow's weak points in manufacturing and consumer products names. Tuesday's rally was broadbased and brought the Standard & Poor's 500 index (^SPX - news) up 40.17 points, or 2.87 percent, to 1,441.61 while the Wilshire 5000 (^TMW - news) climbed 3.73 percent, or 478.89 points to 13,328.47. Even the small-cap market jumped as measured by the Russell 2000 (^RUT - news), up 5.83 percent, or 26.79 points to 486.05. ``I'm pretty impressed and pretty amazed at how strong the rebound is today following yesterday,' said James Oberweis, president and portfolio manager of Oberweis Asset Management. ``My expectation has been that the stocks that have earnings would be the ones that lead the market back up,' he said. ``But the money seems to be running back into the stocks that it was running out of last week.' With this week's strength, both the Dow and Nasdaq have trimmed their losses for the year. The Dow is still down 6.39 percent this year while the Nasdaq composite is down 6.78 percent in 2000. The market's breadth was solidly positive with advancers outpacing decliners on both the New York Stock Exchange and the Nasdaq. The Big Board saw 1.09 billion shares change hands while 2.13 billion shares traded on Nasdaq. Still, traders, portfolio managers and analysts said the snapback in stock prices may have a very weak base following one of Wall Street's worst weeks in history. ``I think it's excessive and I think it'll go down and retest the lows,' Kirlin's Dwyer said. ``The difference this time is that the lows should hold.' Gruntal & Co.'s technical strategist Todd Gold agreed, noting that Monday's action did not indicate a sufficient bottoming out for stocks. If Nasdaq continues to rally, it may feel resistance at the 3,900 level, Gold said. ``However, in our opinion, a period of basing with a potential test of the recent lows would be a more likely scenario and ultimately a healthier one for the composite,' Gold said in a research note. Still, Wall Street was focused on corporate earnings, which offset lingering valuation fears for the moment, analysts said. Investors boosted shares of International Business Machines (NYSE:IBM - news) up 2-7/8 to 115-1/8 ahead of the company's earnings announcement due after the close. Computer-chip giant Intel was also expected to post results, along with America Online (NYSE:AOL - news) and Qualcomm Inc. (NasdaqNM:QCOM - news). Biotechnology company Immunex Corp. (NasdaqNM:IMNX - news) jumped 4-3/16 to 48-1/16 before its results, helping bolster the sector. The American Stock Exchange's biotech index (^BTK - news) rallied 10.21 percent to 446.81 while the Nasdaq biotech index (^IXB - news) rose 10.56 percent to 938.71. Internet names also pushed higher with the American Stock Exchange's Internet index (^IIX - news) up 7.85 percent to 505.28 and the Dow Jones Internet index (^DJINET - news) up 17.36 percent to 277.81. ``I think a lot of the buying will have proven to be very very intelligent buying,' said Arnold Berman, technology strategist at SoundView Technology Group. ``But, I don't think they'll enjoy just straight up capital gains without having to go through a little bit of a backward movement.'>>