Semis Sizzle; Dow Smokes

August 14, 2000
Daniel Beighley

A resurgent semiconductor group helped pace a broad rally in stocks that took
the Nasdaq up 1.6%, the Dow up 1.3%, and the S&P 500 up 1.3%. The day’s
action helped the Dow in particular, as it not only reached levels not seen
since April 12, but it also closed nearly 400 points above its 200-day moving
average.

Volume, however, remained very light at typical summer levels, with 1.22
billion shares changing hands on the Nasdaq and 786 million shares trading on the
NYSE.

"Is the market half-full or half-empty? That has been the quandary for most
investors during the past four months. Either position could be argued
convincingly on any given day, with the major price indexes caught in narrow
trading ranges, and with as many stocks advancing as declining on a daily
basis," said Paul Desmond, President, Lowry’s
Reports.

"But, little by little, Demand is winning out over Supply, and the ‘half-empty’
market should continue to fill during the weeks and months ahead," he
added.

According to preliminary numbers, the Dow gained 148.34 to 11176.14, the
Nasdaq added 59.98 to 3849.45, and the S&P 500 rose 19.70 to 1491.54.

As for the future of interest rates, Paul Rabbitt,
President, RabbittAnalytics.com said, "We are increasingly certain the Fed is done raising rates. The
combination of flat PPI in July, a tame employment report a week ago Friday, a
strong productivity report Tuesday, and a Fed Beige Book with no rate hike
arguments augur for no change of rate policy at the FOMC meeting on August
22."

Looking ahead, the July’s industrial production numbers will be released on
Tuesday at 9:15 PM ET. Street estimates look for a 0.4% increase.

Semis Sizzle; Dow Smokes

BUY THE FEAR, SELL THE GREED

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