Nasdaq Needed November
Optimistic fourth-quarter projections from Intel and more signs of economic
cooling rallied the Nasdaq troops Thursday, as Internets, biotechs, and semis
powered the Nasdaq to a 2.9% gain. Rounding out the other major averages, the
S&P 500 tacked on 0.5%, while the Dow slipped by 0.2%.
Third quarter productivity rose 3.8%, which topped the Street estimate of
3.2% and further supported the belief that the economy continues to cool.
Several analysts commented that the recent round of economic numbers might spur
the Federal Reserve to begin think about easing rates.
In a constructive sign for the resurgent Nasdaq, volume increased a 10% from
Wednesday’s level, with a hefty 2.2 billion shares changing hands. NYSE volume
was slightly lower than Wednesday, with 1.14 billion shares trading.
“The market is showing a lot of good strength as is obvious to all of us
here the last few days, and it looks to me like we’re in a bit of a recovery. I
expect the recovery to continue to continue to last for some days and weeks, and
where it takes us remains to be seen,” said Edward Wedbush, President,
Wedbush Morgan Securities
“I’m a little bit cautious toward the networking stocks, and I am
eagerly looking forward to Cisco’s earnings on November 6, particularly their
looking forward assessment.”
According to preliminary numbers, the Nasdaq rose 95.63 to 3429.02. the
S&P 500 added 7.10 to 1428.32, and the Dow slipped 18.96 to 10,880.51.
Top sectors included Internets
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up 4.9%, technology
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and retailers
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Under pressure were insurance
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down 2.7%, and integrated oils
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Cisco Systems
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5/8 or 7% to 55 3/4 on heavier-than-average volume.
Intel
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winners were Wal-Mart
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Alcoa
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In the Internet space, America Online
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heavier-than-average volume to close 3/4 below its 50-day moving average. The
stock has gained 13% in the last three days and has finished each session at its
highs of the day. Kevin Haggerty had mentioned in Monday’s Views
From The Trading Desk that it looked like the Generals may want to try to
get AOL going again.
Looking to Friday, the much-anticipated September employment report is due
out at 8:30 AM ET. Analysts expect 190,000 new jobs, an average hourly wage
increase of 0.3%, and for unemployment to remain unchanged at 4.0%.