Nasdaq Surges, Court Reverses

December 8, 2000
Daniel Beighley

Tech stocks rallied sharply following an encouraging batch of November
employment numbers and a growing consensus that the election would reach a quick
resolution. An apparent Gore court victory announced after the bell, however,
sent futures plunging and raised a whole new round of appeals and questions
regarding the election’s outcome.

For the regular session, though, the Nasdaq booked an impressive 5.9% gain,
which left it nearly 11% above its Monday close. The Dow gained 0.9%, and the
S&P 500 rose 1.9%.

In economic news, non-farm payrolls rose by 94,000 for November, which was well below the
147,000 analysts had expected. In addition, unemployment ticked up 0.1% to the expected 4.0%, and the average hourly wage
rose 0.4%, which was slightly ahead of the expected 0.3%.

“The odds are improving that the election process will soon give us a
new President elect. There could then be bear closing, an end to tax loss
selling, and a relief rally. The normal seasonal and honeymoon period for the
new man would be likely.” said Robin Griffiths, Global Technical
Strategist, HSBC.

“Some core stocks are already going back into uptrend from extreme
oversold levels. The index itself could rally to 3000 without resistance then to
3,600 after that. A best case scenario would target 4,200 — before a major
consolidation phase,” he added.

According to preliminary numbers, the Nasdaq soared 162.22 to 2914.88, the
Dow rose 95.55 to 10,712.91, and the S&P 500 added 25.99 to 1369.54.

While traders will be on the lookout next week for more high-profile earnings
warnings, they will also beÂ waiting for the Producer Price Index on
Thursday. Analysts expect a 0.2% increase.

Nasdaq Surges, Court Reverses

BUY THE FEAR, SELL THE GREED

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