To: Sonny who wrote (98525 ) 2/12/1999 11:26:00 PM From: Mohan Marette Respond to
This just in from NBR- On Dell computer. Pay special attention to Wolf.02/12/99: NASDAQ Takes Investors On A Wild Ride LINDA O'BRYON: There was trouble in the technology sector on Wall Street again today. The NASDAQ Composite Index lost 83 points on warnings about Dell Computer (DELL). That Index has been incredibly volatile recently with wide swings on four out of five trading days this week alone. Scott Gurvey looks at what's causing the roller coaster ride. CHARLES WOLF, TECHNOLOGY ANALYST, WARBURG DILLON READ: Nobody knows what the numbers are. I mean, Dell does not provide guidance on their revenue. It sells direct to its customers, so there's no way to check whether its sales are strong or its sales are weak, other than to get comments from the company that would indicate that. Now, the company's not talking because they're in the quiet period before they report on Tuesday. GURVEY: Whatever the truth of the warning, the sell off in Dell spilled over to other personal computer companies, and from there to semiconductors and the rest of the technology sector. While big board stocks are certainly affected, it is the NASDAQ that is experiencing new extremes of volatility. That's the price it pays for being home to the high-techs, and a move in just one can have a major impact on the Index. Dell makes up more than 5 percent of the NASDAQ 100, Microsoft (MSFT), a whopping 15 percent, Intel (INTC) 8 percent, Cisco (CSCO) and MCIWorldcom (WCOM), 6 percent each. As long as these remain stocks with big stories, the NASDAQ can be expected to continue its wild swings. I would also not be surprised if at the end of this year stocks aren't substantially higher. I would expect them to be higher. I think we are... We have a long way to go on the upside because the stock market ultimately reflects what's going on in the economy, and what's going on in the economy continues to be incredibly good.
