Technologys Take Nasdaq To New Highs In Narrow Rally
The momentum behind technologys followed through again Monday, taking the Nasdaq to yet another all-time high close. Chip-makers, Internets, and blue-chip technologys led the Nasdaq to record levels while the rest of the market lagged for the session. Banks saw a considerable amount of selling pressure.
According to preliminary numbers, the Nasdaq added 25.37 to 3546.00, the Dow fell 61.17 to 11225.01, and the S&P 500 lost 0.69% to close at 1423.33.
Nasdaq leaders that posted 52-week highs included Applied Materials, Cisco, Sun Microsystems, Apple Computer, and CMGI. Other blue-chip tech leaders posting solid gains were IBM and Texas Instruments.
Stocks weighing on the Dow included Boeing, Hewlett Packard and Merck which were each off by more than 3%. IBM, Eastman Kodak, and International Paper made solid gains but were not enough to move the Dow into positive territory.
Top-performing groups included semis [$SOX.X>$SOX.X], up 3.7%, Internets [$GIN.X>$GIN.X], up 3.1%, and computer technology [$XIC.X>$XIC.X], up 1.0%.
Groups showing weakness included pharmaceuticals [$DRG.X>$DRG.X], down 2.9%, oil service [$OSX.X>$OSX.X], down 4.0% and banks [$BIX.X>$BIX.X], down 5.4%.
Yahoo! [YHOO>YHOO] rocketed sharply higher, partly on news that First Union had raised its current 240 price target to 350 and reiterated its “strong buy†rating. Also helping the portal move higher was the fact it will join the S&P 500 after the close on Tuesday. Yahoo finished the day up 27 13/16 at 280 13/16.
Digital certificate provider Verisign [VRSN>VRSN], set to split its shares at the close Monday, soared 30 3/4 at 236 11/16 on the day. Stock split news also helped Inktomi [INKT>INKT] trade up 13 at 158. Inktomi announced its stock split last week.
International Internets also showed strength in Monday trading. Internet Initiative Japan [IIJI>IIJI] rose 20 5/8 to 129 1/8, Satyam Infoway [SIFY>SIFY] gained 13 3/8 to 135 1/2, Korea Thrunet [KOREA>KOREA] soared 15 5/8 to 72 5/8 65, and China.com [CHINA>CHINA] added 10 3/16 to 129 7/8.
Economic reports due out on Tuesday include third-quarter productivity at 8:30 AM ET and October consumer credit at 3:00 PM ET.