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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (30652)	1/15/1998 9:51:00 PM
From: Glenn D. Rudolph	Respond to of 61433

Stock Rally Ends As Asia Declines; Bond Prices Stall By KELLY DRAKE INTERACTIVE JOURNAL ÿÿÿÿÿA three-day rally on Wall Street faltered Thursday, as stocks tumbled in the wake of renewed weakness in Asian markets. Bonds drifted near break-even levels, and the dollar traded mixed. ÿÿÿÿÿThe Dow Jones Industrial Average, which had racked up gains totaling 204.27 points in the previous three sessions, slid 92.92 points to close at 7691.77. The Standard & Poor's 500-stock index fell 7.21 to 950.73 and the New York Stock Exchange Composite Index lost 3.40 to 497.95. ÿÿÿÿÿ"Asia is again sort of rearing its ugly head," said Hugh Johnson, chief investment officer at First Albany Corp. ÿÿÿÿÿHong Kong's key Hang Seng index plunged 7% Thursday amid rumors that the region's real-estate market could be exposed to further declines. Also, there was speculation that British bank Schroders would close its securities operations in Asia. The company said after the Hong Kong market closed that it will slash 220 jobs from its securities division in the region. ÿÿÿÿÿStocks fell in Indonesia, as well, but South Korean stocks jumped nearly 6.5%. Tokyo's markets were closed for a holiday. ÿÿÿÿÿThe Nasdaq Composite Index was a bit stronger than the other market indexes, as its dominant technology group stabilized. But it gave up slim gains to end down 1.70 to 1547.07. ÿÿÿÿÿTechnology stocks have been battered of late as investors fret about how the turmoil in Asia has affected profits, particularly at computer and semiconductor makers. Computer maker Digital Equipment on Thursday posted fourth-quarter earnings that topped analysts' expectations. Its shares climbed 1 7/8 to 39 3/8. ÿÿÿÿÿBut Mr. Johnson said investors' earnings worries may not be quieted in the near term. "The markets are looking at fourth-quarter earnings [in the technology sector] with some earnest, but the truth is we won't be able to gauge the impact of the Asian crisis until we see first- and second-quarter earnings," he said. ÿÿÿÿÿBonds stalled, as investors seemed unable to find a defining current for the day. Treasury prices rose in early trading as equities investors sought a so-called safe haven, but later gave up those gains. ÿÿÿÿÿInvestors largely ignored a Labor Department report that initial claims for state unemployment benefits in the latest week climbed 3,000 to 335,000, compared with expectations for a drop of 14,000. The previous week's figure was revised to 332,000 from an initially reported level of 334,000. ÿÿÿÿÿWorld-wide, stocks fell in dollar terms. The Dow Jones World Stock Index was down 0.59 to 161.91. ÿÿÿÿÿIn major market action: ÿÿÿÿÿStock prices fell. On the Big Board, 1,608 stocks declined and 1,350 advanced as volume reached 568 million shares. ÿÿÿÿÿBonds held steady. The long bond lost 1/8 point, or $1.25 for each $1,000 face amount. Its yield, which moves in the opposite direction from its price, stood at 5.74%. ÿÿÿÿÿThe dollar was mixed. It was at 1.8320 marks and 129.80 yen, compared with 1.8225 marks and 130.93 yen late Tuesday. Tapewatch Update ÿÿÿÿÿInitial jobless claims for the week to Jan. 10 rose 3,000 to 335,000, above the 320,000 that economists expected. Separately, November business inventories rose 0.4%, following a revised rise of 0.3% in October. Analysts predicted a rise of 0.5% for November.