<font color=blue>MARKET SNAPSHOT--11:12 AM--Techs extend gains; Dow wobbles
Payrolls up 137K, jobless rate at 3.9%
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 11:12 AM ET Nov 3, 2000 NewsWatch
Latest headlines
NEW YORK (CBS.MW) - The Nasdaq extended gains for a second session Friday, buttressed by Internet and networking issues. But the Dow Industrials wobbled for a third day on a row, hindered by losses in some of its retail, drug and cyclical components.
While non-farm payroll growth was softer, pressures on wages were more pronounced than expected, which unnerved the bond market and kept equity investors cautious.
Within the jobs numbers, non-farm payrolls figures rose by a less-than-expected 137,000 versus the expected 183,000 gain. The unemployment rate remained steady at 3.9 percent versus the expected climb to 4 percent while average hourly earnings rose 0.4 percent, slightly higher than the 0.3 percent increase forecast by economists. See full story.
"While it does appear that job growth is indeed ebbing, labor supply remains incredibly tight. Clearly, the lack of workers is pushing up wages," said Joel Naroff.
Naroff believes that'll be sufficient for the Fed to keep its inflation bias at the November Federal Open Market Committee meeting.
The Dow Jones Industrials Average ($DJ: news, msgs) fell 44 points, or 0.4 percent, to 10,835. The biggest downside movers included Philip Morris, Home Depot, Alcoa and Merck.
The Nasdaq Composite ($COMPQ: news, msgs) advanced 31 points, or 0.9 percent, to 3,460 while the Nasdaq 100 Index rose 38 points, or 1.2 percent, to 3,347.
The Standard & Poor's 500 Index ($SPX: news, msgs) added 0.2 percent while the Russell 2000 Index ($RUT: news, msgs) of small-capitalization stocks edged up 0.1 percent.
Volume came in at 353 million on the NYSE and at 694 million on the Nasdaq Stock Market. Market breadth was mixed, with decliners matching advancers on the NYSE while winners beat losers by 17 to 16 on the Nasdaq.
Specific movers
Qualcomm (QCOM: news, msgs) climbed $6.19 to $69. Late Thursday, the company said it made 25 cents a share in the fourth quarter, beating the First Call estimate by a penny. Revenue, at $635 million, was at the low end of expectations.
Sprint edged up 31 cents to $22.81. The company (FON: news, msgs) told investors that it sees 2000 earnings-per-share between $1.80 to $1.90 and between $1.65 and $1.75 in 2001. Currently, First Call puts 2000 EPS at $1.90 and 2001 EPS at $2.10. WorldCom (WCOM: news, msgs) rose 38 cents to $17.94 after falling for three straight sessions in the wake of its profit warning earlier in the week.
Meanwhile, Priceline posted (PCLN: news, msgs) after the close Thursday a loss of a penny a share in the third quarter, matching the lowered First Call estimate. In addition, the troubled name-your-price outfit announced reshufflings on the executive level and slashed 16 percent of its workforce. See related story. The stock tumbled $2.25, or 33 percent, to $4.59.
Semiconductor assembly equipment producer Kulicke & Soffa (KLIC: news, msgs), meanwhile, sank $3.88, or 26 percent, to $11 after lowering its revenue expectations for the first quarter of 2001 due to customer order deferrals.
Treasury focus
Government issues lost ground after the release of the employment report as investors zeroed in on the lower-than-expected unemployment report and higher-than-expected hourly earnings, which both point to continued tightness in the labor market.
The 10-year Treasury note fell 12/32 to yield ($TNX: news, msgs) 5.795 percent while the 30-year government bond erased 13/32 to yield ($TYX: news, msgs) 5.815 percent. See Bond Report.
Still due out on the economic front are September factory orders, which are seen rising by 0.9 percent. View Economic Preview, economic calendar and forecasts and historical economic data.
Cornering the foreign exchange market, dollar/yen fell 0.9 percent to 107.25 while euro/dollar rallied 0.9 percent to 0.8648 after climbing to an intra-day high of 0.8794, its highest level since early October. The European Central Bank intervened to support its fledgling currency early Friday, indicating that it remains concerned about the global and domestic repercussions of the exchange rate of the euro. See related story. |
