Stock Upturn Gains Steam
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Despite more earnings warnings, stocks extended yesterday's modest upturn into a relatively strong Santa Claus rally in early trading today, and breathed new life into battered technology and Internet stocks.
The ISDEX (ISDEX) rose 35 to 363, to post a midday gain of 10.6%. More than three-quarters of the 50 ISDEX stocks traded higher, led by six stocks advancing more than 20 percent:
AETHER TECHNOLOGIES INC jumped 24.5%,
REALNETWORKS INC , regained 22.5%,
SCIENT CORP moved up 21.9%,
JUNIPER NETWORKS INC advanced 21.8%,
GOTO COM INC rose 20.6%, and
TIBCO SOFTWARE INC gained 20.3%
Both the Nasdaq and Dow Jones Industrial Average spurted to early triple-digit gains. At midday, the Nasdaq, which earlier in the day pierced the 2500 level, remained ahead 144 points at 2485, and the Dow held on at 10568, ahead 81 points. The S&P 500 climbed 22 to 1297.
Volume was 648 million shares on the NYSE and 1.3 billion on the Nasdaq. Advancers led decliners by nearly two to one on the NYSE, and by five to three on the Nasdaq. Up volume exceed down volume by wide margins in both markets. Ominously however, Nasdaq new lows (254) exceeded new highs (69) by a wide margin as well. In contrast, NYSE new highs bested new lows, 136 to 66.
3COM (COMS) gained more than 12 percent after reporting lower than expected losses.
Shares of Ravisent Technologies (RSVT) more than doubled after Microsoft choose the firm to supply digital video disc playback software for Microsoft's highly anticipated Xbox game.
Announcing a plan to buy ten percent of it own shares, Hoovers (HOOV) stock advanced more than 50 percent.
Struggling IXL Enterprises' (IIXL)share price jumped nearly 40 percent when it announced it will raise cash as part of an aggressive restructuring plan.
Presstek, Inc. (PRST), a leading provider of direct digital imaging technologies to the printing and publishing industry, said today that management believes that the recent downturn in the company's stock price is not reflective of the strength of the company's ongoing operations and future business outlook. Presstek shares climbed 43 percent on the news.
VIVUS, Inc. (VVUS) today announced receipt of 510(k) approval from the Food and Drug Administration (FDA) for over-the-counter (OTC) marketing of ACTIS, an adjustable constriction band used to enhance the erection process in men with erectile dysfunction (ED). Vivus stock price rose 37 percent.
Note: Technical market commentary will return Wednesday, December 27, 2000.
Happy Holidays to all!