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 : the Women of SI -- Ignore unavailable to you. Want to Upgrade?

To: Rainy_Day_Woman who wrote (974)	5/18/2000 8:51:00 AM
From: Rainy_Day_Woman	Read Replies (1) \| Respond to of 1691

NEW YORK, May 18 (Reuters) - U.S. stocks were expected to struggle at the opening bell on Thursday to start a choppy and sluggish trading session as Wall Street extends its debate over whether the Federal Reserve will continue to raise interest rates. Light trading will again be an issue, analysts said, as the lure of warmer weather pulls players away from the market. Stocks are expected to hover in this trading range until volume picks up to ignite a sustainable rally. ``I think the markets are just going to continue to be choppy here,'' said James Volk, co-director of institutional trading at D.A. Davidson and Co. ``Volume is light. There is a big argument over whether the (Federal Open Market Committee) is going to raise rates one more time on June 28 or whether they have to continue to go on,'' he said. ``We'll need a lot more good news to get a sustainable move to new highs for this market.'' With more than an hour to go before U.S. stock markets open, the Standard & Poor's 500 index futures for June was off 3.20 points at 1,453.50, while the Nasdaq 100 index futures dipped in and out of positive ground, lastly up at 11.50 points to 3,594.00. In economic news, data on weekly jobless claims was due at 8:30 a.m. EDT (1230 GMT) and the Philadelphia Fed was to release its April manufacturing business outlook survey at 10 a.m. EDT (1400 GMT). Also, the Treasury Department will buy back up to $2 billion of long-dated outstanding issues. On Wednesday, stocks ended a four-day rally as investors pulled cash out of nearly every sector. The Dow Jones industrial average (^DJI - news) lost 164.83 points, or 1.51 percent, to 10,769.74, pulled lower by tech stalwarts after adding 567 points in the previous four sessions. Hewlett-Packard (NYSE:HWP - news) dragged the blue-chip gauge down, losing 9-15/16 to 130-1/16 despite posting higher earnings and sales for the fiscal second quarter. International Business Machines (NYSE:IBM - news) slipped 1-1/2 to 107-1/2 and Microsoft (NasdaqNM:MSFT - news) was off 1-13/16 at 67-11/16. The pullback in technology brought the Nasdaq composite index (^IXIC - news) down 72.66 points, or 1.95 percent, to 3,644.91. Software, hardware and biotech shares all lost ground. Broader measures of the market also eased. The Standard & Poor's 500 index (^SPX - news) fell 18.25 points, or 1.24 percent, to 1,447.79. The Wilshire 5000 index (^TMW - news) slid 183.77 points, or 1.35 percent, to 13,417.61, and the small-cap Russell 2000 (^RUT - news) weakened 6.32 points, or 1.25 percent, to 499.66. Among stocks in the news overnight, Microsoft's offer to change its business practices was rejected by the U.S. government, which said the changes would not stop the firm's violations of antitrust law. The government defended its proposal to break up the company. Federal antitrust officials are moving closer to deciding that WorldCom Inc.'s (NasdaqNM:WCOM - news) proposed buyout of Sprint Corp. (NYSE:FON - news) should be blocked because the fusion would be a blow to competition, according to two newspaper reports. WorldCom shares ended Wednesday at 42 while Sprint closed at 58. Asian Internet firm Chinadotcom Corp. (NasdaqNM:CHINA - news) said it was open to spinning off some of its more robust subsidiaries if market conditions were right. Among its stronger units are its electronic commerce arm Web Connection and the online advertising unit 24/7 Asia network, the company's chief executive said. Chinadotcom shares closed Wednesday at 30-1/16.