<font color=blue>MARKET SNAPSHOT--A mixed bag for shares Techs recover; Dow sputters
By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 10:45 AM ET Sep 7, 2000 NewsWatch Latest headlines
NEW YORK (CBS.MW) - The major averages put on a mixed performance Thursday, with a rebound in tech issues pushing the Nasdaq higher while a sell-off in shares of DuPont hurt the Dow Industrials.
Chip stocks gained ground after faltering for three straight trading sessions. Market watchers say it's imperative the semis reclaim lost territory for the Nasdaq to make any lasting progress. Also gaining ground in the tech arena were networking and computer hardware shares.
A rally in the biotech group, which put an end to two days of selling, was also behind the Nasdaq's nice performance on Thursday.
"The markets are likely entering a period of rest in the form of a trading range after running up for the last five weeks. Since the rally period was slow, the consolidation period will likely be similarly quiet," said Robert Dickey, chief technical strategist at Dain Rauscher Wessels.
"This may be the best we can expect as the market sorts through the earnings news of the next two months," he concluded.
The Dow Jones Industrials Average ($DJ: news, msgs) slipped 56 points, or 0.5 percent, to 11,254.
DuPont was the biggest drag on the index following its profit warning, dropping nearly 9 percent. The Dow's winners Thursday included Wal-Mart, Intel, General Motors and Hewlett-Packard.
The Nasdaq Composite ($COMPQ: news, msgs) rose 61 points, or 1.5 percent, to 4,075 and the Nasdaq 100 Index ($NDX: news, msgs) rallied 82 points, or 2.1 percent, to 3,920.
Many big-cap tech stocks, which came under selling pressure over the past couple of trading sessions, rebounded nicely on Thursday. Sun Microsystems, for example, climbed 3.5 percent, Intel rose 2.5 percent and JDS Uniphase added 2 percent.
The Standard & Poor's 500 Index ($SPX: news, msgs) gained 0.3 percent while the Russell 2000 Index ($RUT: news, msgs) of small-capitalization stocks advanced 0.3 percent.
Volume was heavy at 238 million on the NYSE and at 410 million on the Nasdaq Stock Market. Market breadth remained mixed, with losers beating winners by 13 to 11 on the NYSE and advancers outpacing decliners by 17 to 15 on the Nasdaq.
Specific movers
Yahoo (YHOO: news, msgs) eased $2.06 to $110. The company's chief executive Tim Koogle made some cautious comments on ad revenue at the Robertson Stephens Internet Conference on Wednesday. Asked whether Yahoo will see weakness in advertising -- both traditional and dot-com -- Koogle said that while it's hard to gauge, he believes the difficult period will continue for two more quarters. See full story.
Dow-component DuPont (DD: news, msgs) lowered its 2000 earnings-per-share estimate to $2.85 to $2.95, which falls short of the current First Call estimate of $3.01. The company blamed higher-than-expected energy and raw materials costs as well as the euro's continued decline. See full story. Shares fell $4.50 to $42.50.
Treasury focus
Government issues recovered, erasing the mild losses suffered out of the gate. However, observers say the heavy issuance calendar in the corporate market is likely to put a cap on gains going forward.
The 10-year Treasury note added 1/32 to yield ($TNX: news, msgs) 5.725 percent and the 30-year bond lost 1/32 to yield ($TYX: news, msgs) 5.715 percent. See Bond Report.
In economic news, Thursday saw the release of weekly initial claims, which dipped 3,000 to 316,000. The week's data docket has left the bond market without any fresh evidence that the U.S. economy is slowing and Treasurys have been mired within a tight range. View Economic Preview, economic calendar and forecasts and historical economic data.
In the currency arena, dollar/yen (C_JPY: news, msgs) dropped 1.0 percent to 104.83 while euro/dollar (C_EUR: news, msgs) continued its descent, piercing fresh lows of 0.8637. The pair was recently trading at 0.8700, off 0.2 percent.
Comments from European officials suggest that the European Central Bank won't intervene in foreign exchange markets to prevent additional declines in the fledgling currency. This gave investors the green light to sell more euros.
"Financial capital flows to wherever risk-adjusted expected returns are greatest. Perhaps as a means of avoiding the Continent's restrictive regulatory and tax policies, Europeans continue to pour financial capital into the U.S.," said John Lonski, chief economist at Moody's Investors Service.
"Global investors are very much attracted to the flexibility and dynamism of the U.S. economy," Lonski added.
The euro has fallen 14 percent this year and is down almost 26 percent since its inception in January 1999. The euro first fell below parity against the dollar in December 1999.
Julie Rannazzisi is markets editor for CBS.MarketWatch.com. |