The Comeback Kid
An earnings warning from Intel sent stocks into a nosedive Friday, but a
steady rally in blue chips and select technology coaxed the Nasdaq back from the
brink, as it finished down just 0.6% at its high of the day. The Dow actually
gained 0.7% and the S&P 500 closed flat.
The Nasdaq gapped down at the open and traded down as much as 5.6% or 214
points before having its day-long reversal begin. Several analysts commented
that a strong Nasdaq finish would be extremely constructive for the average
moving forward.
Nasdaq volume surged 30% from Thursday’s level as 2.16 billion shares changed
hands while volume on the NYSE totaled a healthy1.17 billion shares.
According to preliminary numbers, the Dow gained 81.85 to 10,847.37, the
Nasdaq lost 25.25 to 3803.62, and the S&P 500 eased by less than a point to
1448.71.
Top performing sectors were biotechnology
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up 3.5%, and health care
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Weak sectors included semiconductors
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Intel
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15/16, and despite its weight on the Dow, the Dow posted solid gains for the
session.
Among Dow stars were Hewlett Packard
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up 7%, Boeing
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Chips avoiding the semi selloff included Rambus
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Advanced Micro
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Semi
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Select shiners included Corning
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Corp.
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20 to 174 3/16.
Looking ahead in economic news, the August existing home sales will be
released at 8:30 AM ET on Tuesday. Analysts look for a figure of 4.48 million
sales.