Nasdaq Attempts Comeback

July 31, 2000
Daniel Beighley

Technology stocks rebounded solidly Monday from last week’s 10.5% Nasdaq
swoon, as semiconductors, networking and Internet stocks helped pace the
Nasdaq’s nearly 3% gain. The Dow rose a modest 0.1% while the S&P 500 posted
a 0.8% gain.Â

Many traders commented that the Nasdaq had become quite oversold during last
week’s selloff, so Monday’s bounce was not a great surprise. The Nasdaq bounce
was accompanied by lighter volume, with 1.50 billion shares changing hands,
which was about 15% lighter than Friday’s level. NYSE volume lightened about 8%,
with a total of 930 million shares trading.

“The market decline of the past two weeks has been very intense in some
sectors and industry groups. But, with the evidence currently available, it still
appears to fit within the normal parameters of a short-term correction in a basic,
albeit unusually selective, uptrend pattern,” said Paul Desmond, President,
Lowrys’s Research.

According to preliminary numbers, the Nasdaq gained 103.99 to 3766.99, the
the Dow rose 10.81 to 10,521.98, and the S&P 500 added 10.94 to 1430.83.

As for the near-term outlook for stocks, Paul Rabbitt, President,
RabbittAnalytics.com said, “We are continuing our bullish scenario. We
expect some sloppiness this week but believe a bottom will be found within days,
if not sooner. Our long-term argument is intact.”

“The economy is above trend, but last week’s inflation indicators were
tame. Profits are coming in at around 22.5% in the S&P 500, down slightly
from the first quarter, but are still very good,” he added.

Looking ahead, economic news due out Tuesday includes the National Association of Purchasing
Managers data, June construction spending, and personal income and savings
figures.

Nasdaq Attempts Comeback

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources