Techs lead broad-based rally
Nasdaq, Dow climb more than 180 points
MARKET SNAPSHOT
By Rex Nutting CBS MarketWatch
Last Update: 3:09 PM ET May 30, 2000 Market Pulse
Bond Report
NEW YORK (CBS.MW) -- The Nasdaq Composite rose more than 200 points late Tuesday as a daylong rally strengthened going into the closing bell.
It looks like all the battered stock market needed was a long weekend so investors could recharge their batteries.
Buyers jumped back into the stock market from the get-go on Tuesday, sending major market averages higher and higher as the trading day wore on.
The Dow Industrial Average rose 190 points, or 1.8 percent, to 10,488 while the Nasdaq Composite gained 203 points, or 6.3 percent, to 3,408. The Standard & Poor's 500 Index climbed 38 points, or 2.7 percent, to 1,415. The Wilshire Total Market index gained 2.9 percent to 12,986.
"It feels pretty good," said Bill Schneider, head of block trading at UBS Warburg. "We've got some people who've been on the sidelines now getting back to work."
The Nasdaq is struggling to close above 3,350.
Almost all sectors were participating in the rally. Semiconductors, computers ($IXCO: news, msgs), Internets ($GIN: news, msgs), telecom ($IXTC: news, msgs), biotechs ($IXBT: news, msgs) and banks ($XBD: news, msgs) led the advance. Drug stocks ($DRG: news, msgs) were among the few decliners.
"The rally is pretty much across the board," said Peter Cardillo, chief strategist at Westfalia Investments.
Chip stocks ($SOX: news, msgs) jumped 7 percent after getting a boost from reports that prices of DRAM semiconductors had risen nearly 6 percent. The sector was also helped by analysts at Lehman Brothers and PaineWebber, who starting coverage of Micron (MU: news, msgs) and Texas Instruments (TXN: news, msgs). See related story.
The Dow Utilities (UTIL: news, msgs) fell 3 points, or 1 percent, to 324. The Dow Transportation average ($TRAN: news, msgs) gained 42 points, or 1.6 percent, to 2,730.
Advancers were leading decliners on the Big Board by 9 to 5 and on the Nasdaq by 12 to 7. Volume on the New York Stock Exchange was 627 million while 1.05 billion trades were recorded on Nasdaq at 3 p.m.
"The volume is better than you'd expect on the Tuesday after a long weekend," Schneider said.
"We're seeing people come in and pick up some of these bargain," Cardillo said. "It's some institutions, some individuals, traders -- just about everybody."
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Among shares gaining, VoiceStream Wireless (VSTR: news, msgs) climbed 13 3/8 to 113 3/4 on a media report that Japan's cellular giant NTT DoCoMo would take a 15 to 20 percent stake in the company for up to approximately $4.8 billion. See related story.
Lucent Technologies (LU: news, msgs) added 7/8 to 56 5/8. The company is in talks to buy privately held optical equipment maker Chromatis Networks for more than $5 billion in stock, according to several media reports over the weekend. See related story. Lucent could pay between $5.5 billion and $5.7 billion in stock for Chromatis, stated reports from Reuters and from the Financial Times.
Vodafone (VOD: news, msgs) gained 4 to 46 as France Telecom (FTE: news, msgs) announced its $38 billion offer for Orange. The French telephone giant added 7 to 138. See related story.
Metromedia Fiber Network (MFNX: news, msgs) soared 3 5/8 to 29 1/8 after inking a deal with SBC Communications (SBC: news, msgs) to lease its fiberoptic network for 20 years for $432 million. See related story.
Qualcomm reversed earlier losses, gaining 6 3/4 to 72 13/16. See related story. Other telecom equipment makers were also higher. Nokia (NOK: news, msgs) rose 3 to 51, Ericsson (ERICY: news, msgs) jumped 1 5/16 to 19 15/16 and Alcatel (ALA: news, msgs) gained 6 to 55.
Also, Dow Jones Industrials Average ($INDU: news, msgs) component IBM (IBM: news, msgs) rose 2 9/16 to 109 1/2. Big Blue is expected to announce Tuesday a new business-to-business Internet marketplace with 10 major telecommunications and electronics companies, according to the Associated Press. See related story.
Cadence Design Systems (CDN: news, msgs) was one of the most active stocks on the Big Board, gaining 1 5/16 to 15 5/8 in fallout from an analyst meeting on Thursday.
In other tech stocks seeing activity, America Online (AOL: news, msgs) jumped 4 1/8 to 52 5/8, Cisco Systems (CSCO: news, msgs) rose 4 3/16 to 59 1/8, Microsoft (MSFT: news, msgs) tacked on 2 to 63 7/16, Oracle (ORCL: news, msgs) gained 5 1/2 to 72 1/2 and Yahoo (YHOO: news, msgs) stepped up 5 to 117 1/16.
Office Depot (ODP: news, msgs) shed another 5/8 to 7 after a profit warning on Friday. See related story.
Treasury market
Treasurys were a touch weaker, getting a double whammy from strong economic news and the strong stock market.
The benchmark 10-year Treasury note was off 12/32 with its yield at 6.38 percent. The 30-year bond eased 15/32 to yield 6.09 percent. Moving down the yield curve, the 5-year was down 6/32 at 6.62 percent. The 2-year shed 4/32 at 6.74 percent.
The bond market was in a wait-and-see mode ahead of a big week for economic data, starting with the release of the consumer confidence index.
The Conference Board said its index jumped back to near-record highs in May, confounding economists who figured that the stock market's volatility and higher interest rates would begin to erode optimism in the household sector. See related story.
"It's a negative for bonds, because people are still feeling good and that'll mean higher interest rates," Westfalia's Cardillo said."On the other hand, the economy is still strong and corporate profits will do well."
The big enchilada of economic data comes Friday with the May jobs report. See Economic Forecast, economic calendar and forecasts and historical economic data.
In the currency arena, the dollar lost 0.5 percent to 106.41 yen while the euro rallied 0.5 percent to 93.20 cents after nudging past 94 cents, the highest since mid-April.
In the commodity market, July crude increased 41 cents to $30.41 while the Bridge CRB index fell 1.23 to 223.75. View latest commodity prices.
Rex Nutting is an editor for CBS MarketWatch. |
