Another Record Fortifies NASDAQ
Hill, Patrice, The Washington Times (Washington, DC)
Technology stocks yesterday continued a strong recovery from the battering they took in last week's rout of the financial markets, sending the Nasdaq composite index ahead by 254 points.
It was the second record gain in as many days for the "new economy" index, which surged as small and large investors alike went bargain hunting, wiping out Friday's 355-point loss and landing at 3,794.
Even with the 217 points regained Monday, The Nasdaq is still 25 percent below the high it set little more than a month ago.
Flinging aside for now the fears of inflation that toppled the market on Friday, investors focused on strong profits generated by the booming economy. Predictions that earnings could double to 22 percent in the first quarter over the previous year spurred big gains in stocks across the board.
The Dow Jones Industrial Average soared by 190 points to 10,772, led by gains in technology giants Microsoft, International Business Machines, Intel and Hewlett-Packard.
Beleaguered Internet and biotechnology stocks - the darlings of investors before getting pummeled in the last month - joined in yesterday's rally, suggesting that investors' faith in the dot.com revolution transforming American business has been shaken, but not entirely abandoned.
Yahoo and on-line brokerage E-Trade bounded higher, and biotechnology company Amgen sprang back to life. Nasdaq stalwarts like Sun Microsystems and Cisco Systems also fueled the rally with sharp rises.
"Last week was a healthy washout, removing the weak sisters from the market," said Art Hogan, chief market analyst at Jeffries and Co.
"The market will remain volatile, but many companies, old-line and new economy both, are still earning strong profits."
The market's wild seesawing this year reflects the conflict between two world views competing for dominance in the market, said Greg Smith, stock strategist at Prudential Securities in New York.
The "bullish" view, which came roaring back this week, extols the virtues of the new economy and its ability to grow rapidly without inflation because of the efficiencies brought about by new technologies.
The "bearish" view, …
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Publication information: Article title: Another Record Fortifies NASDAQ. Contributors: Hill, Patrice - Author. Newspaper title: The Washington Times (Washington, DC). Publication date: April 19, 2000. Page number: 8. © 2009 The Washington Times LLC. COPYRIGHT 2000 Gale Group.
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