Technologys Yell Yahoo As Nasdaq Hits New High
An upward revision of third-quarter productivity numbers by the Labor Department helped the Nasdaq move to yet another all-time high Tuesday as many of the big-cap technology giants and Internets hit all-time highs. The huge moves in Internet-related stocks also are beginning to remind traders of mania levels the market has not seen since last April.
According to preliminary numbers, the Nasdaq added 40.70 to 3586.71, another record close, but the Dow fell 118.36 to 11106.65, and the S&P 500 lost 1.0% to close at 1409.18.
The Nasdaq may have moved to new highs, but overall market breadth remained weak as the broader market chose to ignore the positive economic news. Even the Labor Department’s news that unit labor costs had actually fallen 0.2% compared to the 0.6% increase analysts expected failed to spark a broader market rally.
Among the top performing groups Tuesday were gold and silver [$XAU.X>$XAU.X], up 4.7%, Internets [$GIN.X>$GIN.X], up 3.7%, and gaming [$GAX.X>$GAX.X], up 3.0%. Groups showing the largest declines included banks [$BIX.X>$BIX.X], down 3.1%%, and oil services [$OIX.X>$OIX.X], down 3.0%.
Leading the Nasdaq to another all-time high was Yahoo! [YHOO>YHOO]. The Internet portal giant surged 65 7/8 to 346 11/16 ahead of its addition to the S&P 500 after Tuesday’s close. It has been quite a run for Yahoo which traded as low as 110 on August 5, 1999, just over four months ago.
In addition to Yahoo!, other giant moves were posted by Red Hat [RHAT>RHAT], up 52 to 248 1/8, Juniper Networks [JNPR>JNPR], up 43 3/4 to 332, and Infosys Technologies [INFY>INFY], up 37 5/8 to 290.
Weighing on the Dow was Coca-Cola [KO>KO]. Coke’s recent pullback continued Tuesday with the stock falling 4 21/32 to 59 15/16. The resignation of its chairman, along with ongoing problems in its international unit, have helped drive the stock back down below its 200-day moving average. Coke traded as high as 69 just last Friday.
Also helping drag the Dow lower on Tuesday were, General Motors [GM>GM] down 4 7/8 to 72 5/8, Johnson & Johnson [JNJ>JNJ], down 3 9/16 to 93 1/4, and Minnesota Mining and Manufacturing [MMM>MMM], down 4 13/16 to 93.
Finally, one company showing renewed strength today was fiber optic equipment maker Ciena [CIEN>CIEN]. Ciena traded as low as 8 1/8 in October, 1998, and continues its year-long comeback. The stock hit a 52-week high and closed up 11 1/2 at 60 1/16. Ciena’s earnings are due out on Friday morning.