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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (16170)	5/26/1998 6:16:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

Quite a good article explaining why we were down today : Tuesday May 26, 5:26 pm Eastern Time "Wall St ends sharply off amid rekindled Asian woes" By Huw Jones NEW YORK, May 26 (Reuters) - Wall Street ended sharply lower on Tuesday as investors sought safety in the surging dollar and bonds amid worries that Asia's turmoil may dent U.S. corporate profits for longer than previously thought. Investors also turned cautious as the market enters the pre-announcement season when companies warn if second quarter earnings may disappoint. The Dow ended unofficially off 150.71 points, or 1.65 percent, at 8963.73. It was the blue-chip index's second biggest point loss this year after a 222 point fall on Jan. 9. The dollar's rise to just shy of a seven-year high against the Japanese yen triggered fears that profits of American companies doing business with the world's second largest economy could be hurt by making U.S. goods more expensive. A weaker yen may also trigger a round of competitive devaluations in other Asian countries which would also hit U.S. companies trading in the region, analysts said. Last week's slide in technology stocks was broadening out, said Michael Metz, a managing director at CIBC Oppenheimer. ''People are having second thoughts about Asia's impact on profitability for the balance of the year,'' Metz said. ''The strong dollar is also causing a problem. The fear is that the weakness of the yen could have a snowball effect on other currencies in Southeast Asia and bring about a renewed period of instability,'' Metz added. Wall Street has bet that U.S. corporate earnings will rebound in the second half of the year, which justified current high stock valuations, analysts have said. The Standard & Poor's 500 index ended off 16.45 points, or 1.48 percent, at 1094.02. On the New York Stock Exchange, declining issues outpaced advancers by almost three-to-one on moderate volume of 534 million shares. The 30-year Treasury bond was up 31/32, pushing the yield down to 5.84 percent. Late afternoon, the dollar traded just under 138 yen, up two yen since Friday. Investors faced a bearish picture before trading began -- South Korean stocks tumbled on panic selling for the second straight session overnight, triggered by the weak yen, fears of recession, and labor unrest. The dollar surged against the yen as Washington appeared ready to tolerate a weaker Japanese currency while Tokyo breathes new life into its economy. Investors were also cautious as they awaited earnings pre-announcements for the second quarter, said Henry Herrmann, chief investment officer at Waddell & Reed. ''They don't want to stick their necks out too much. People are re-assessing Asia and the earnings threat,'' Herrmann said. Wall Street guru Barton Biggs, Morgan Stanley Dean Witter's global strategist, said Tuesday that the tone of equity markets around the world is deteriorating. ''After so many false alarms, a serious decline could finally be coming,'' Biggs said in a report. He cut the stocks element in his model portfolio in preference for cash. Trouble in the tech stocks and lagging small caps were bearish signs, Biggs said. Both were evident Tuesday as investors returned from Monday's Memorial Day holiday when the markets were shut. The tech-studded Nasdaq ended off 26.91 points, or 1.49 percent, at 1778.09. The small cap barometer, the Russell 2000, shed 7.91 points, or 1.71 percent, to 455.08. biz.yahoo.com Mang