Cruel September

September 18, 2000
Daniel Beighley

Stock spiraled downward Monday in a broad-based selloff that saw financials,
airlines and oil services join the ever-weakening technology sector in the red.
The Nasdaq lost 2.8% for the day and that leaves it more than 12% below its
intraday high on September 1.Â

As the selling expanded out from last week’s tech-focused declines, the Dow
lost 1.1% and the S&P 500 lost 1.5%, which leaves all three major averages
below their respective 50- and 200-day moving averages.

While the declines in the major averages were sharp, volume showed little
sign of neither panic nor capitulation. Nasdaq volume of 1.60 billion shares was
a decrease of about 9% from Friday’s level, and NYSE volume contracted by 23%,
as 956 million shares changed hands.

“I think we’re in the grips of a surprising
hit in the over-the-counter market, and the speed with which it came down the
10% or so this month suggests that even if you get a bounce, it probably has
further to go,” said Robert Wibbelsman, Portfolio Manager,
Strome Investment Management.

“Usually when they start out this quickly, they have
longer-lasting troubles. I don’t know what the spook for this is. Bonds have become lousy, and I just don’t know what
triggered the selloff, other than a continuation of the correction that started
in March,” he added.

According to preliminary numbers, the Nasdaq sank 108.71 to 3726.52, the Dow
fell 118.48 to 10,808.52, and the S&P 500 slipped 21.30 to 1444.51.

Looking ahead, the August new housing starts are due out Tuesday at 8:30 AM ET, and Street estimates look for a figure of 1.54 million.

Cruel September

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources