Worries Mount; Naz Hangs

September 20, 2000
Daniel Beighley

Worries abound Wednesday, and that sent stocks lower as all three averages
seemingly threw in the towel. By the close, however, the Nasdaq managed to carve
out a 0.8% gain thanks in part to select big cap techs and Internets. Weakness
in cyclicals, financials, and consumer stocks dragged the Dow down 0.9% and the
S&P 500 down 0.6%.

Volume picked up by about 10% from Tuesday’s levels, as 1.79 billion shares
traded on the Nasdaq and 1.10 billion shares traded on the NYSE.

Analysts commented that there were simply too many things for stocks to be
concerned with, and several commented that the overall health of the market
right now leaves much to be desired.

“We’re continuing to see weakness in the Dow Jones Industrial Average on concerns over earnings,
on worries over currency translations like the weak euro versus the dollar, and
on nervousness over high oil prices. We’re seeing very negative breadth in both
the Dow and Nasdaq averages, and it looks to me like both indices are potentially in quite a bit of trouble
here,” said Terence Gabriel, Stock Market Strategist, IDEAglobal.com.

“Unless we have a pretty substantial rally over the next month or so, I think we are going to
have a real tax-loss selling overhang through the rest of the year. I think it really puts the market in a tenuous

According to preliminary numbers, the Dow fell 101.37 to 10,687.92, the
Nasdaq gained 31.80 to 3897.44, and the S&P 500 slipped 8.56 to 1451.34.

Looking ahead, the rest of the week is relatively light for economic news,
but traders look to the release of the Philadelphia Fed report Thursday for more
clues as to the Fed’s mindset toward interest rates.

Worries Mount; Naz Hangs

BUY THE FEAR, SELL THE GREED

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