Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (32190)	5/8/2000 1:42:00 PM
From: Techplayer	Respond to of 63513

Jorj, I am still holding out for a bounce. The overall market is not exactly cooperating today. tp

To: Jorj X Mckie who wrote (32190)	5/8/2000 2:35:00 PM
From: Sarkie	Respond to of 63513

I want to go back to the good ol' days when valuations meant nothing!! ----------------- By Elizabeth Smith NEW YORK, May 8 (Reuters) - The Nasdaq stock market buckled at midday on Monday under questions about the high valuations of key technology companies and fears about the effects of another interest-rate hike on U.S. stocks. The technology-heavy Nasdaq composite index (INDEX:$COMPX) dropped 90.72 points, or 2.38 percent, to 3,726.1 while the Nasdaq 100 index of top stocks <.NDX> lost 103.14 points, or 2.8 percent, to 3,585.22. More traditional stocks were holding up more firmly. The Dow Jones industrial average (INDEX:$INDU) was off 5.55 points, or 0.05 percent, at 10,572.31. "There is a lot of apathy out there, and I would say that most investors are now confused about technology," said Arnold Berman, a strategist at Wit Soundview Corp. "On the other hand, investors can't think of another subsector of the market that is as important as technology." Technology stocks were whacked Monday after an article in Barron's weekly financial magazine on Sunday questioned the market capitalization of Cisco Systems (NASDAQ:CSCO), the leading maker of equipment that directs traffic on the Internet. Wit Soundview's Berman downplayed the article's effects on the market, though. Weakness in tech stocks was due to the nervousness in advance of the Federal Reserve's May 16 meeting, when Fed policy-makers are expected to hike interest rates by at least 25 basis points and, very possibly, 50 basis points. Higher interest rates can hurt corporate profits because they make it more expensive for companies to borrow money. Technology companies are often deemed less exposed to interest-rate hikes because they are often carry less debt and more cash on their balance sheets than traditional companies. "Basically, fighting the Fed in the two weeks prior to a meeting is usually brutal," Berman said. "During the two weeks after, though, stocks are pretty good. People are afraid to buy anything right now." Cisco, the most heavily weighted stock in the Nasdaq index, dropped 4 to 63-3/4. The company was to report quarterly earnings Tuesday. Leading computer chip maker Intel Corp. (NASDAQ:INTC) lost 4-11/16 to 118-3/4/. That helped drive the Philadelphia Stock Exchange Semiconductor sector index (INDEX:$SOX.X) down 32.85 points, or 2.97 percent, to 1,072.28. Applied Materials (NASDAQ:AMAT), which makes equipment used to make computer chips, slipped 2-9/16 to 99-5/16. It was due to report its earnings on Wednesday. Dell Computer Corp.(NASDAQ:DELL), the world's No. 2 PC maker, fell 2-1/16 to 47-13/16. It was scheduled to report earnings on Thursday. Merger news, however, drove up some Nasdaq stocks. Internet company Verio Inc. (NASDAQ:VRIO) shot up in share price after Japan's NTT Communications (TOKYO:9432), a unit of Japanese telecom giant Nippon Telephone and Telegraph Communications, said it would buy the remaining portion of the company it does not own for $60 a share in cash. The company bought 10 percent of Verio in 1998. Also, Ancor Communications Inc.(NASDAQ:ANCR), a provider of fiber optic switches for data storage networks, rose 9-5/8 to 40-15/16 after QLogic Corp. (NASDAQ:QLGC) said it would buy Ancor for about $1.7 billion in stock. QLogic dropped 19 to 80-15/16. Copyright 2000, Reuters News Service ===========================================================