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To: Elwood P. Dowd who wrote (91053)	5/1/2001 6:38:41 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

TheStandard.com Springing for May Day By Vishesh Kumar Stocks were strong Tuesday, with both the Nasdaq and the Dow posting significant gains sending short-sellers ran for cover. More economic data indicating that the U.S. economy was likely to avoid a recession bolstered investor confidence, as did news that Washington was coming to a preliminary agreement on a large tax cut. Although some big caps led the Nasdaq march, a number of riskier, small-cap stocks were Tuesday's big winners. ADVERTISEMENT "This was a pleasant surprise for most of us who thought the market might digest gains in April and not head much higher," said Alan Ackerman, a VP and chief market strategist at Fahnestock. "This session was a sizzler, and it indicated a decided change. Mood, momentum and money flow are all in favor of the market." For the day, the Nasdaq climbed 52.14 points, or 2.46 percent, to close at 2168.38. The Dow, which sat out Monday's rally, added 163.376 points, or 1.52 percent, to finish at 10898.34. Another strong day could put the index over the 11,000 mark. The S&P 500 moved up 16.99 points, or 1.36 percent, to 1266.45. The Industry Standard 100 outpaced the others again Tuesday, moving up 20.8 points, or 4.91 percent, to 444.75. Big-cap stocks provided their share of leadership. Cisco Systems rose 4.83 percent, EMC was up 5.3 percent and Lucent Technologies was up almost 9 percent. Perhaps more notable was the flow of cash into small caps -- the kind of issue that, according to Ackerman, "had fallen out of favor lately." "In the smaller-cap stocks, the bounce was from an oversold condition. It may be a signal that investors think the worst is over," he said. Extremely strong performances Tuesday came from recently battered issues, including Internet holding companies. CMGI was up $1.16, or 38.8 percent, to $4.15. Internet Capital Group soared 72 cents, or 33.18 percent, to $2.89. Other Net-related stocks also had a big day. Priceline.com was up $1.74, or 35.88 percent, to $6.59. Web consulting firm Razorfish climbed 27 cents, or 28.72 percent, to $1.21. And despite a cautionary tone from analysts at SG Cowen and Lehman Brothers, chip companies managed to post a good showing Tuesday. Chip giant Intel gained 27 cents, or 0.87 percent, to $31.18. The Philadelphia Semiconductor Index posted a modest gain, advancing 0.57 percent. Eric Ross, an analyst at Thomas Weisel Partners, said that investors might believe Lehman analyst Dan Niles has too bearish an outlook on the future of the sector. "It seems he is looking at a recession in the sector for the next few years," said Ross. "But if you look at the number of unit sales, we are going to have a decent couple of years."