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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (12026)	11/24/1998 7:12:00 PM
From: Brad Hill	Respond to of 64865

Closing Bell market update -- Tuesday bradhill.com STOCK SPUTTER Day-after hangover afflicts the stock market following yesterday's record. Even the Internet stocks couldn't save today's market, as most sectors experienced losses. Most of the excitement was provided by two significant mergers: America Online (AOL) and Netscape Communications (NSCP) finalized a much-publicized deal that will see the browser company absorbed by the online service giant. Sun Microsystems (SUNW) is a third party in the background of the deal. This is a blockbuster merger that reshapes the Internet landscape and its economy. Ramifications will be felt at the individual consumer level, and within the Justice Department antitrust lawsuit against Microsoft (MSFT). Union Camp (UCC) and International Paper (IP) reached a merger agreement today, with IP set to buy UCC. As if often the case in such deals, shareholders of the acquired company favor the merger more than shareholder of the acquiring company. Union Camp stock rose 32 percent, while IP stock fell by almost 4 percent. OPEN QUESTIONS: It may not be surprising that stocks slid across the board today, after yesterday's all-out effort to cross the Dow and the S&P 500 into record territory. The question is whether investor sentiment will conclude that the massive stock rally since October 1 has overvalued the marketplace generally, warranting a significant correction. The other interpretation, equally valid, is that today's action represents mere profit taking. Days like today are often "breathers" following a protracted market effort. SECTOR WATCH: On a mostly red-ink day, paper companies rolled out big gains, thanks to the merger between Union Camp and International Paper. Airlines soared. Banking and insurance companies were mixed, as were utilities and retail companies. Gold stocks led to the downside, followed by the ever-volatile Internet sector. Technology issues sputtered across the board. CBS MarketWatch Industry Indexes: cbs.marketwatch.com TIDBITS: Internet stocks generally move as a group, an indication of undiscriminating investor enthusiasm for the sector. But today the industry was governed by special situations, and unpredictably so. Amazon.com (AMZN), gained prominent placement on Microsft's portal page, yet fell by 3 1/2 points. Other e-commerce ventures outperformed today, as the holiday buying season gets underway, including OnSale (ONSL) which gained over 50 percent, and Cyberian Outpost (COOL), which likewise surged over 50 percent. Egghead Software (EGGS) was quoting 32 percent richer prices by day's end. Search engine stocks, perhaps responding to the newly created AOL/Netscape juggernaut, were uniformly down. TECHNICAL ANALYSIS: What moves the market? The indices may go up or down, but do they accurately reflect the depth of the securities marketplace and broad corporate health? One answer can be seen by comparing the NYSE Composite Average with the NYSE Advance-Decline line. Closing Bell provides daily Advance-Decline figures for three major exchanges, but you get a new perspective by seeing the line charted over time. What's the conclusion? The NYSE Composite has diverged from the A-D line markedly since late 1997. The greater the divergence, the less accurately the index represents the entire inventory of NYSE stocks. bradhill.com LOOKING AHEAD: Wednesday: Personal Income and Consumption, released by The Bureau of Economic Analysis of the Department of Commerce, at 10 am EST. biz.yahoo.com =================================================================== Closing Bell -- a daily market update. See it to believe it! Read online or subscribe free. bradhill.com Index closings; Advance-Decline; gainers & losers Essential information for those who have a life Links to essential news stories around the Web Concise text summary of the day, with a sense of humor Links to news sites and investment advice sites No graphics; no Java; no delays; nice design ** Built for beginners; informative for everyone Thank you for reading, and good luck to everyone. Brad Hill bradhill.com