Nasdaq rallies late on bargain hunting

Cisco, Intel lead buying

Dow drops 18.37 to 10,577.89

June 03, 1999|By BLOOMBERG NEWS

NEW YORK -- The Nasdaq composite index staged a late-day rally, led by Cisco Systems Inc. and Intel Corp., as investors concluded the index's 8.5 percent decline in the past six weeks was overdone, given the outlook for earnings.

Of the top 10 most active stocks yesterday, nine traded on the Nasdaq market.

"This is bargain hunting -- some of these stocks had just gotten battered," said Marc Klee, manager of the $650 million John Hancock Global Technology Fund in Garden City, N.Y.

An afternoon speech by Federal Reserve Board Chairman Alan Greenspan helped calm a jittery market. The policy-maker kept his remarks at an international business conference in Boston tightly focused on trade, and did not address interest rates.

The Nasdaq gained 20.38 to 2,432.41, to recover from a 47-point decline. The Dow Jones industrial average fell 18.37 to 10,577.89 and the Standard & Poor's 500 index rose 0.55 to 1,294.81.

Elsewhere on the broad market, the Russell 2,000 index, a benchmark of small-cap stocks, slipped 0.25 to 436.74; the Wilshire 5,000 index dropped 7.90 to 11,894.64; the American Stock Exchange composite index lost 4.88 to 771.23; the New York Stock Exchange composite index fell 0.78 to 620.50; and the S&P 400 midcap index skidded 3.31 to 396.47.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks edged up 0.38 to 191.52.

Some 16 shares declined for every 13 that advanced on the NYSE, where 730.5 million shares traded.

Dell Computer Corp., the most active stock in U.S. trading yesterday with nearly 42 million shares changing hands, gained 43.75 cents to $33.50.

Cisco Systems jumped $3.0625 to $110.125, and Intel, the world's largest computer chip maker, climbed $1.25 to $51.9375.

America Online Inc., the second most traded stock yesterday, slid $3 to $110.125, and Microsoft Corp., No. 4 on the list, slipped 6.25 cents to $78.4375.

E*Trade Group Inc. lost $1.0625 to $38.25; CMGI Inc., which develops Internet and database management technologies, skidded $2.625 to $93.625; and Oracle Corp. eked out a 68.75-cent gain to $26.1875.

After slumping almost 14 percent in the past two weeks,'s Internet index was little changed as Yahoo! Inc., Macromedia Inc., and Inc. led gainers. Yahoo! climbed $4.3125 to $142.50; Macromedia gained $3.125 to $43.125; and rose $6.3125 to $112.125.

J. P. Morgan & Co. led the Dow average lower with a decline of $2.625 to $130.875, and Citigroup Inc. fell $1.3125 to $41.625. Donaldson, Lufkin & Jenrette Inc. lost $2.375 to $59.375 and Morgan Stanley Dean Witter & Co. slid $3.50 to $88.25.

Merrill Lynch & Co., the biggest brokerage, fell $4.5625 to $70.6875 after analysts at Goldman, Sachs & Co. and CIBC World Markets Inc. cut the earnings estimates for 2000 by at least 7 percent.

Oil stocks rose as gasoline climbed more than 3 percent, its biggest gain in two months. Sunoco Inc. trimmed output at a Philadelphia refinery because of low profit margins, cutting supply at the start of the peak driving season. The company may reduce oil processing by about 20 percent, traders estimated.

Sunoco Inc. gained 62.5 cents to $30.75. Exxon Corp. rose $1.375 to $80.25; Mobil Corp. gained $1.8125 to $101.625; and Chevron Corp. climbed $1.5625 to $92.

Sears, Roebuck & Co. gained $1.75 to $50.875 after the largest U.S. department store company was raised to "buy" from "outperform" by analysts at Lehman Brothers.

Adobe Systems Inc. rose $2.5625 to $75.0625 after the world's biggest maker of graphics software used by newspapers and magazines, said it will cut 250 jobs, or about 9 percent of its work force, the second time it's slashing jobs in nine months.

Pub Date: 6/03/99

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