Nasdaq With The Kick…It’s Good!

January 26, 2001
Daniel Beighley

Despite a slew of negative comments from the high-flying tech sector, the
Nasdaq battled its way back from an early-morning, 50-point plunge and finished
with a respectable 1% gain. Impressive was the Nasdaq’s bounce off of its 50-day
moving average just above 2700 which may become a new level of support.

Blue chips weakened, as the Dow and S&P 500 posted declines of 0.6% and
0.2%, respectively. One bright spot in the blue chips, however, was strength in
the banks.

Volume remained flat as 2.2 billion shares traded on the Nasdaq and 1.1
billion shares changed hands on the NYSE. Traders commented that the light
volume was likely because of side-lined money waiting for the Fed’s move next
Wednesday.

“I think that it being a Friday and seeing that we have had a good
run-up over the last few weeks, the market is just taking a pause. The market is
also looking toward the Fed meeting next week, and people are kind of treading
water and debating whether we are going to get a quarter or half point move in
rates,” said Jay Suskind, Director of Trading, Ryan Beck & Co.

“Also, when Greenspan said yesterday that we’re basically at zero growth
now, that may have scared the market a bit and likely made people think that
maybe they bought some of these stocks too soon,” he added.

According to preliminary numbers, the Nasdaq gained 26.92 to 2781.20, the Dow
slipped 69.54 to 10,659.98, and the S&P 500 eased 2.57 to 1354.94.

Up big on a solid earnings report was Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) which gained 7
1/16 to 81 on nearly double average volume.

Looking ahead, the next economic report due out is the January Consumer
Confidence Report which is due out Tuesday at 10:00 AM ET. Analysts look for a
reading of 127.0.

Nasdaq With The Kick…It’s Good!

BUY THE FEAR, SELL THE GREED

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