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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (943)	9/13/2000 12:43:50 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

RMBS--U.S. blue chips suffer, but Nasdaq rebounds (UPDATE: updates to early morning) By Elizabeth Lazarowitz NEW YORK, Sept 13 (Reuters) - Blue-chip stocks were off in early morning trading on Wednesday as high oil prices, the strong U.S. dollar and slowing U.S. growth had investors fretting about dwindling corporate profits. But the Nasdaq market staged a sharp rebound, vaulting into positive territory after falling more than 1 percent at the start of trading. ``I think you're just seeing a bit of bargain-hunting after yesterday's drubbing in the tech stocks,'' said Bryan Piskorowski at Prudential Securities. Meanwhile, the market was plagued by losses in some financial services stocks in the wake of the announcement of a merger between two banking heavyweights, J.P. Morgan & Co. Inc. (NYSE:JPM - news) and Chase Manhattan Corp. (NYSE:CMB - news). The deal came as the latest in a string of mega-mergers in the banking industry in recent weeks. The Dow Jones industrial average (^DJI - news) was down 24.42 points, or 0.22 percent, at 11,208.81, while the broader Standard & Poor's 500 Index (^SPX - news) was up 1.47 points, or 0.1 percent, at 1,483.46. Analysts said the blue-chip Dow lost steam after being lifted on Tuesday by J.P. Morgan's gains amid merger speculation. J.P. Morgan was off 5/16 at $177-7/16 after shooting sharply higher and then paring back in after-hours trading. The Dow was also slammed by heavy losses in its technology components, like computer chip maker Intel Corp. (NasdaqNM:INTC - news), which fell $2-3/16 to $62-3/4, and Hewlett-Packard (NYSE:HWP - news), which dropped $4-13/16 to $107-3/4. But the semiconductor sector appeared largely immune to Intel's declines and its gains helped the Nasdaq market erase its early losses. The technology-laced Nasdaq Composite Index (^IXIC - news) was up 16.5 points, or 0.43 percent, at 3,866.01. Chip technology maker Rambus Inc. (NasdaqNM:RMBS - news) was one bright spot in the Nasdaq, gaining $7-8/16 to $84-7/16 on news it had signed a new chip licensing agreement with NEC Corp , the world's second-largest chipmaker. But analysts said the high cost of oil and the dollar's strength against Europe's single currency, the euro, have been weighing heavily on investors' minds, fearful they could bite into profits of big, multinational companies. ``It's more of the same in terms of earnings worries,'' said Arthur Hogan, chief market analyst at Jefferies & Co. Wall Street appeared largely unfazed by U.S. August import and export price data, which showed import prices rose 0.2 percent versus an unchanged reading in July, while export prices slipped 0.3 percent versus a revised decline of 0.1 percent in July. Later in the session, the U.S. Commerce Department reported the U.S. current account widened to a record deficit of $106.14 billion in the second quarter versus August versus $101.51 billion in July.