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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (3916)	7/20/2000 11:02:58 AM
From: J.T.	Respond to of 19219

U.S. Stocks Rally; Greenspan Sees Economy Slowing, Nasdaq Soars quote.bloomberg.com Top Financial News Thu, 20 Jul 2000, 11:01am EDT U.S. Stocks Rally; Greenspan Sees Economy Slowing, Nasdaq Soars By Stephen Cohen New York, July 20 (Bloomberg) -- U.S. stocks rallied as Federal Reserve Chairman Alan Greenspan told Congress the economy is slowing, boosting optimism the central bank is almost finished raising interest rates. The surge that lifted the Nasdaq Composite Index 30 percent since May resumed after a two-day retreat as JDS Uniphase Corp. soared after Standard & Poor's said it's adding the company to the S&P 500. Lucent Technologies Inc. fell after the phone-equipment maker said profit for the next two quarters will be disappointing. ``Greenspan likes to hint to the market what he's doing before he does it,'' said Peter Boockvar, an equity strategist at Miller Tabak & Co., immediately before the testimony. ``If there's the slightest hint of him not raising rates in August, the market will take it very positively.'' The Nasdaq climbed 107.15, or 2.6 percent, to 4162.78, led by JDS Uniphase and SDL Inc., which JDS is acquiring. The Dow Jones Industrial Average rose 123.75, or 1.2 percent, to 10,819.83, with International Business Machines Corp. accounting for half the advance. The S&P 500 gained 14.28, or 1 percent, to 1496.24. More than three stocks rose for every two that fell on the New York Stock Exchange. Through yesterday, the Nasdaq had fallen 4.5 percent this week, the S&P 500 1.9 percent and the Dow 1 percent. Computer-related shares including IBM, the world's biggest computer maker, and SanDisk Corp. gained after reporting profit that beat expectations. JDS Uniphase rose 17 5/16 to 124 1/16. Funds that try to match the S&P 500's performance will need to buy $6.3 billion worth of JDS Uniphase between now and the end of trading on July 26. SDL Inc., which is being bought by JDS Uniphase, surged 59 5/8 to 419 1/4. ``Everybody's looking for a tech rebound after the slide in the past couple days,'' said Michael Driscoll, a trader at Donaldson, Lufkin & Jenrette Inc. ``That should outweigh everything else -- tech is where it's at.'' Greenspan Speech Stocks extended early gains as Greenspan began his semiannual testimony to Congress. The Fed chairman said the economy is slowing and moving closer to ``balance.'' Stocks in the S&P 500 have fallen four of the last six days Greenspan addressed Congress. The S&P was unchanged when he last spoke in February. IBM gained 5 to 114 3/4. The world's No. 1 computer maker said second-quarter profit rose a more-than-expected 15 percent. The company said it expects to meet estimates for full-year profit. Lucent fell 9 1/4 to 55 1/4 after the biggest maker of telephone equipment warned profit excluding merger charges in the quarter ending Sept. 30 will rise only 15 percent, below the 35 percent forecast by analysts surveyed by First Call/Thomson Financial. Profit in the fiscal first quarter will decline 15 percent, Lucent said. The company cited a shift away from higher-margin switching products and dilution from two acquisitions. Lucent, whose shares have fallen 14 percent this year, had fiscal third-quarter profit from operations that beat estimates by a penny. Lucent also said it will spin off the business that makes semiconductors and fiber- optic components. Best Regards, J.T.