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Message subject : Nasdaq Composite Index surging 6.57%

This message was posted by kit on April 25, 2000 :

THE NASDAQ COMPOSITE closed up 228.75 points to 3711.23. Gains by heavyweight tech shares lifted the Dow Jones Industrial Average 218.72 points, or 2.01%, to 11124.82, closing above 11000 for the first time since April 13.
Both indexes strengthened in late trading and finished near their highs for the day. It was the Nasdaq composite’s second biggest gain in point terms and third biggest gain in percentage terms.
Other major indexes also rose. The Standard & Poor’s 500-stock index gained 47.35, or 3.31%, to 1477.21 and the New York Stock Exchange Composite Index added 16.59, or 2.58%, to 658.77.
Some analysts saw the Nasdaq composite’s advance as encouraging, suggesting the market is establishing its footing. But most said they remained convinced the rebound isn’t strong enough to stick in the short-term.
“We’re getting a bounce in the markets overall, but in the Nasdaq and the technology stocks in particular,” said Joseph J. McAlinden, chief investment officer at Morgan Stanley Dean Witter. “It’s going to have a little bit of life to it ... but I don’t believe the correction is over in the Nasdaq or the techs.”
Tuesday’s gains by the Nasdaq composite easily erased Monday’s 161.40-point drop, but left the index down 8.8% for the year and off 26.5% from its March 10 record close. The Dow industrial average extended its rally into a third straight session Tuesday after dipping into negative territory in midmorning trading.
The market received some support from encouraging earnings reports as oil producers Exxon Mobil, Texaco and Conoco all reported big increases in first-quarter income. Corning’s shares had surged 27 3/4, or 18%, to 178 3/4 by 4 p.m. EDT after the company reported better-than-expected first-quarter earnings late Monday.

Among other companies reporting results, Xerox’s shares rose 2 9/16 to 26 11/16 after it posted a big first-quarter loss. The company’s performance was better than Wall Street’s expectations.

Frank Cappiello, president of McCullough, Andrews, & Cappiello, tells CNBC why he is bullish on both old and new economy stocks, and shares his top picks.

But Dow component Minnesota Mining & Manufacturing’s shares fell 3 9/16 to 93 13/16 as investors worried about rising raw-materials costs and unfavorable currency-exchange rates after it reported a 27% jump in first-quarter net income.
Helping to offset the decline by 3M were strong gains in tech heavyweights International Business Machines, Intel and Hewlett-Packard, which had suffered amid the recent decline in tech shares.
Richard Cripps, chief market strategist at Legg Mason Wood Walker, said the fundamentals of some technology shares remain strong. But skittish investors, worried by the market’s roller-coaster ride, will help prevent the Nasdaq composite from maintaining steady gains.
“I think the market is still trying to settle out, trying to unwind that tremendous advance we had earlier and trying to find a bottom as far as investor psychology,” Mr. Cripps said.
Despite the session’s rebound, Mr. Cripps said slower mutual fund inflows and the historically difficult period for tech stocks that begins next month will prevent a sustainable rebound by the Nasdaq composite. Overall, he noted a flow of funds from tech shares to financial, pharmaceutical and core industrial issues.

Jeff Van Harte, portfolio manager at Transamerica Investment Management, says that the recent drop in Microsoft’s stock price presents a buying opportunity to long-term investors.

Microsoft, which led Monday’s tech sell-off with a 15.6% drop, advanced 2 3/4 to 69 3/8. The software maker’s shares suffered Monday on concerns about its earnings growth, downgrades from analysts and speculation that the U.S. government will break up the company as a solution to its antitrust case.
Morgan Stanley’s Mr. McAlinden said softness in revenue growth reported by Microsoft and several other companies this earnings season has overshadowed overall strong results for the first quarter. Investors also are now focusing on earnings outlook for the second and third quarters.
“They have to have sustainable growth outlooks that are very, very robust,” he said of New Economy stocks, which have suffered in the last month. “You cannot have robust earnings over the long term without robust revenue growth.”
Investors also eyed the latest readings on the economy, which showed consumer confidence slipped slightly in April and U.S. consumers ignored higher interest rates in March to pursue existing-home purchases.
The Conference Board reported that its consumer-confidence index slipped 0.2 point to 136.9 in April. Separately, the National Association of Realtors said Tuesday that existing homes were sold at an annual rate of 4.83 million in March, 1.5% above February’s revised 4.76 million pace.
The market was expected to be somewhat cautious ahead of the release of key U.S. economic indicators later this week.

“It’s a busy week with economic news, so that all weighs heavy on the market,” said Michael Lyons, a senior trader at Morgan Stanley Dean Witter. “Investors are keeping one eye on that and one eye on the tape.”
Advance gross domestic product and employment-cost index figures, due out Thursday, could give a better indication about whether the Fed will raise interest rates by a quarter or half a percentage point at its May 16 policy meeting. Analysts have said the market expects an increase of at least a quarter point.
On the Big Board, where 1.05 billion shares traded, 2,185 stocks advanced and 809 declined. On the Nasdaq Stock Market, 1.58 billion shares changed hands.
The 10-year Treasury note slid more than 26/32 point. Its yield, which moves inversely to price, rose to 6.121%. The 30-year bond fell 29/32 point to yield 5.936%.

The dollar traded at 92.09 cents to the euro and 106.24 yen to the dollar, compared with 93.75 cents to the euro and 105.79 yen to the dollar late Monday in New York.

Sun Microsystems gained 6 1/8 to 93 3/4, EMC added 4 3/4 to 134 1/4, and Network Appliance ended 18 1/8 higher at 68 3/4.
Research in Motion rose 5 3/4 to 41 3/4, and Lexmark International added 2 5/16 to 109 1/2. Lexmark, a Lexington, Ky., computer printer maker, reported first-quarter earnings late Monday that topped Wall Street’s forecasts.
Oracle gained 3 5/16 to 75 3/4, as Micromuse advanced 3 1/8 to 84 1/8.
Shares of networking-switch maker Extreme Networks also improved, gaining 4 7/16 to 59 7/16 on Nasdaq, after Lehman Brothers started coverage of the stock with a buy.
Nextlink Communications advanced 4 23/64 to 72 23/64 on Nasdaq. The McLean, Va., provider of broadband communications services reported fiscal first-quarter results that turned out better than analysts anticipated.

The session generated enough earnings optimism to include some dot-com names, such as, which increased 1 1/8 to 35 5/8 on Nasdaq, after the Pasadena, Calif., Internet concern reported first-quarter losses that proved smaller than analysts anticipated.
SBC Communications added 2 5/8 to 45, after the San Antonio, Texas, telecommunications service provider reported first-quarter results that topped analysts’ targets.
CBS added 1 11/16 to 55 11/16, after the New York broadcasting and media concern reported first-quarter results that proved better than what analysts anticipated. Its Infinity Broadcasting unit moved ahead 2 1/4 to 30 3/4, after its first-quarter profits turned out stronger than analysts anticipated.
International Paper declined 2 3/4 to 37 1/4. The Purchase, N.Y., paper products maker issued an unsolicited bid of $6.2 billion in cash and stock for rival Champion International, threatening a standing offer for Champion from Finland’s UPM-Kymmene. Shares of Champion increased 12 13/16 to 64 1/4.
CVS gained 2 3/4 to 46 3/4. Salomon Smith Barney started coverage of the stock of the Woonsocket, R.I., drugstore chain.
Tandy gained 1 13/16 to 56 7/16, after the Fort Worth, Texas, consumer electronics retailer posted stronger-than-expected first-quarter results.
Starbucks lost 1 3/4 to 38 3/16 on Nasdaq. Banc of America Securities lowered its rating on the stock of the Seattle coffee retailer, ahead of the company’s release of fiscal second-quarter earnings, which are due Thursday.
Kmart lost 1/4 to 8 1/2, after analysts said the Troy, Mich., retailer won’t shown the sales growth it expects when it reports its comparable-store sales for April. Merrill Lynch reduced its rating on the stock to neutral from accumulate.
Royal Caribbean eased 5/8 to 21 15/16, sinking to another 52-week low. Donaldson Lufkin & Jenrette and Merrill Lynch cut ratings on the stock of the Miami cruise-line operator, which had declined nearly 8% Monday, after the company accompanied its better-than-expected first-quarter earnings with a pessimistic outlook.

E-Loan, a Dublin, Calif., Internet mortgage and auto-loan company, more than doubled in market value, surging 5 9/32, or 130%, to 9 11/32. The company said that Charles Schwab, Abbey National, FT Ventures, Benchmark Capital, and Technology Partners agreed to acquire equity stakes in the company for a total of $40 million in cash. E-Loan also said that it entered a strategic alliance with Schwab’s brokerage unit.
Highland Bancorp soared 6 13/16, or 40%, to 24 1/16. The Los Angeles bank holding company agreed to be acquired by Jackson Federal Bank for $25.45 a share in cash. Separately, Highland reported first-quarter earnings of 67 cents a share, compared with its 54-cent year-earlier profit.
Hotel Reservations Network climbed 3 3/8, or 21%, to 19 3/8 after the Dallas Internet provider of discount hotel accommodations posted first-quarter operating earnings that exceeded analysts’ expectations.

EToys leapt 1 1/16, or 19%, to 6 17/32 after The Wall Street Journal reported that the Santa Monica, Calif., Internet retailer plans to launch an $8 million summer marketing campaign. In addition, eToys is reassuring investors it has ample cash on hand to finance operations through the end of the year and isn’t concerned about raising money for 2001, according to the Journal.
Aspen Technology jumped 4 7/8, or 16%, to 35 after the Cambridge, Mass., software company reported fiscal third-quarter earnings of 10 cents a share, compared with its year-earlier 23-cent loss, and analysts’ projections of a 7-cent profit.
Big-Board traded Kollmorgen, a Waltham, Mass., technology company, rose 1 7/16, or 11.9%, to 13 9/16. The company posted a first-quarter loss of 2 cents a share, compared with its year-earlier 16-cent profit, and attributed the loss to the timing associated with recording revenue in its Aerospace & Defense Group unit under several new contracts. The company also said that its first-quarter bookings rose more than 30% company-wide, and that it expects to return to its historic rate of 10% revenue growth, with earnings approaching the levels it achieved in 1998, before downturns in several key markets. gained 1 7/16, or 11%, to 15 1/16 after the New York online news and information provider reported first-quarter breakeven results, compared with analysts projections of a loss of 2 cents a share.

Exodus Communications shares were down $4.125, or 5%, to $78.375.
Redback Networks leaped 13 3/8, or 25%, to 67 3/8 on Nasdaq. The company, which supplies networking systems that enable high-speed broadband Internet access, announced that German service provider riodata is deploying Redback’s subscriber management systems in its new digital-subscriber line service. Goldman Sachs started coverage of Redback on its recommended list.
Razorfish advanced 1 7/8, or 11%, to 19 1/8 on Nasdaq. The Web-strategy and design company named John Roberts, from PricewaterhouseCoopers, chief financial officer. Razorfish is set to release first-quarter earnings at the close of trading Tuesday.

Clarent jumped 14 3/4, or 32%, to 61 on Nasdaq. The provider of Internet protocol telephony systems said China Telecom will use its products for a China-wide IP telephony domestic network.
JDS Uniphase advanced 13, or 16%, to 93 5/16 on Nasdaq. The release of better-than-expected first-quarter earnings by rival Corning signaled that demand for fiber optic components remains strong. advanced 5 3/8, or 20%, to 32 3/4 on Nasdaq. The company estimated its first-quarter loss would come in narrower than analysts’ expectations, as the New York Web-site operator reined in marketing spending and attracted more advertising revenue. climbed 1 1/8 to 35 5/8 on Nasdaq. The search site reported a better-than-expected operating loss of 20 cents a share for the first quarter ended March 31. Analysts were expecting a loss of 33 cents a share. increased 1 7/16, or 11%, to 15 1/16 on Nasdaq. The online provider of Internet technology news reported a first-quarter loss of 17 cents a share, compared with a 20-cent loss a year ago. Excluding amortization, the firm reported breakeven first-quarter earnings, above Wall Street estimates of a two-cent loss.
Nextel Communications rose 12, or 12%, to 111 9/16 on Nasdaq. The wireless-service provider announced the launch of its wireless-data service.
AT&T gained 3 3/16 to 52 1/8, while MediaOne edged up 2 11/16 to 81, both on the New York Stock Exchange. A staff report by the Federal Communications Commission recommended approving AT&T’s acquisition of cable-TV company MediaOne but requiring AT&T to sell off key assets.

Asian-Pacific markets traded mixed, with some markets shrugging off Nasdaq’s sharp fall Monday, while others succumbed to selling. Philippine and South Korean markets fell following Nasdaq’s losses. Hong Kong shares ended a touch higher. In Taiwan, shares were mixed. Japanese stocks fell in uneven trade. The Nikkei 225 index shed 207.82 points, or 1.1%, to 18272.33. Shares in Singapore, Thailand and Malaysia ended higher, while Indonesia’s shares ended sharply lower. Australia’s market was closed for a holiday.

Quick Gifts Books Music & Video Flowers Software Hardware More . . .

European shares gained, buoyed by a rebound in the Nasdaq Composite Index following Monday’s 4.4% drop. German stocks advanced as chemicals shares rallied ahead of expected first-quarter data from the companies later this week. French shares climbed, led by Old Economy stocks. In the United Kingdom shares gained ground as the FTSE 100 Index added 41.8 points, or 0.7%, at 6283. Shares also advanced in Italy, Sweden, Switzerland, Johannesburg and the Netherlands. But shares slipped in Spain and Belgium.
Shares rose across key markets in the Americas as markets were bolstered by gains in the U.S. Nasdaq. Mexican stocks closed sharply higher, with the key IPC index rising 312.82, or 4.9%, to 6756.95. Stocks on Argentina’s benchmark index spent the day trading higher. Canadian stocks rallied as technology shares rebounded from several days of declines. The Toronto Stock Exchange’s 300 share composite index rose 285.93, or 3.24%, to close at 9108.41. Brazilian stocks also ended higher.

The Commerce Department is scheduled to release its March durable-goods-orders report Wednesday at 8:30 a.m. EDT.

Ebay sales, net beat estimates on surge in auction activity.
Nortel Networks posts loss with charges, but surpasses expectations.
Compaq’s first-quarter net income rose 16% amid slim sales growth.
JDS Uniphase posts loss on charges; revenue rises more than fivefold.

source CNBC

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