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

To: Dealer who wrote (3539)	9/25/2000 9:51:50 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

<FONT COLOR=BLUE>--Rebound rally for techs Dow also gets a boost as Intel recovers By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 9:51 AM ET Sep 25, 2000 NEW YORK (CBS.MW) - Tech stocks rebounded nicely Monday, lifting the major averages. The upside move began late Friday and was strong enough to help the Nasdaq erase the brunt of the heady losses suffered early in the session. The most closely-watched stock this week will no doubt be Intel after the semiconductor kingpin dropped a bomb on the market last week with its warning that sales in the third quarter would be less than previously anticipated. Intel (INTC) rose $1.69 to $49.63 following a 22-percent drop on Friday. The Dow Jones Industrials Average ($DJ) gained 31 points, or 0.3 percent, to 10,878. Aside from Intel, other upside movers within the Dow included McDonald's, Coca-Cola. Citigroup and Hewlett-Packard. The Nasdaq Composite ($COMPQ) tacked on 50 points, or 1.3 percent, to 3,854 while the Nasdaq 100 Index ($NDX) advanced 47 points, or 1.4 percent, to 3,748. The Standard & Poor's 500 Index ($SPX) edged up 0.3 percent while the Russell 2000 Index ($RUT) of small-capitalization stocks edged up 0.4 percent. Separately, volume checked in at 77.8 million on the NYSE and at 146 million on the Nasdaq Stock Market. Market breadth was encouraging, with winners outpacing losers by 10 to 8 on the NYSE and by 18 to 10 on the Nasdaq. First Call notes that last week's litany of profit warnings produced a breakout from the "business-as-usual" pattern. In fact, negative pre-announcements now stand at 206 - up about 25 percent from the same time last year. First Call said the expected third-quarter earnings growth rate currently stands at 16.7 percent, down from the 18.1 percent expected at the start if the quarter on July 1. Separately, Trim Tabs estimated that U.S. equity funds saw inflows of $7.7 billion in the three days ending Sept. 21. Technology funds scored triple-digit inflows for the first time since Sept. 5, taking in $168 million, Trim Tabs said. Oil prices in focus Oil prices are in the limelight following President Clinton's decision Friday to release 30 million barrels of crude oil from the strategic petroleum reserves into the market to stabilize prices. November crude tumbled $1.43 to $31.25 after falling $1.32 on Friday. Bruce Steinberg, Merrill Lynch's chief economist, believes that oil production is catching up to demand. Merrill thinks this will allow oil prices to average $25 a barrel in 2001, with price declines to start in the fourth quarter. "If that analysis is correct, then just talking about tapping the strategic petroleum reserve is probably good enough to knock oil prices down a few dollars a barrel," Merrill told clients. But for oil to move toward their $25 target, global inventories need to start rising. If they don't, Merrill said, tapping the Petroleum Reserve will solve nothing. Treasury action Treasurys recovered nicely after a sloppy start, with long-dated issues capturing most of the attention. The 10-year Treasury added 1/32 to yield ($TNX) 5.845 percent and the 30-year Treasury bond gained 11/32 to yield ($TYX) 5.895 percent. The week's economic agenda contains a cluster of generally second-tier releases, such as August durable goods orders, September consumer confidence, August personal income and personal consumption expenditures and the final revision to second-quarter gross domestic product. Monday will see the release of August existing home sales, expected to come in at a 4.74 million rate. View Economic Preview, economic calendar and forecasts and historical economic data. In the currency arena, the euro resumed its downward trajectory following Friday's rally on the heels of a coordinated effort by the European Central Bank, U.S. Federal Reserve and Bank of Japan to bolster the embattled currency. At the weekend's Group of Seven gathering in Prague, finance ministers said they'd keep an eye on the euro's levels and vowed to cooperate in the foreign exchange markets when appropriate. Denmark is set to vote Thursday on whether to join the single currency. Euro/dollar edged down 0.5 percent to 0.8750 after reaching an intra-day peak of 0.9006 Friday while dollar/yen slipped 0.3 percent to 107.68. Julie Rannazzisi is markets editor for CBS.MarketWatch.com.