To: Uncle Frank who wrote (97476 ) 2/11/1999 9:03:00 PM From: Mohan Marette Read Replies (1) | Respond to
High-Tech Remains U.S. Stocks' Driving ForceNEW YORK -- Buoyant technology stocks are likely to remain the driving force behind U.S. markets despite a recent sell-off, analysts said. Technology issues surged Thursday in an indication that the sector remained a Wall Street favorite despite modest shifts into other groups. The technology-heavy Nasdaq index jumped more than 4 percent Thursday, closing up 95.97 points, the largest one-day point gain in Nasdaq's history. However, the index is still about 5 percent off its Feb. 1 closing high. "The point is that ... at the end of the day you go back to the leaders," said Thomas Galvin, chief investment officer at Donaldson Lufkin & Jenrette. Analysts said that even as investors looked elsewhere for gains, technology shares remained likely the best-performing U.S. sector for the next few years. They would stay attractive in part because of strong earnings growth and because they are a driving force in the U.S. economy. Graham Tanaka, manager of the Tanaka Growth Fund, said the dip in technology shares was partly profit-taking and some "rejigging" of portfolios following their strong run higher. "The fundamentals are a green light for techs for the next couple of years at least," he said.
