Stocks Gain On Rate Cut Hopes
Stocks posted strong gains on Monday, as hopes for an intermeeting rate cut from the Federal Reserve gained momentum.
The ISDEX http://www.wsrn.com/apps/ISDEX/
The Fed announced that Chairman Alan Greenspan is revising his Senate testimony of two weeks ago that was criticized at the time for being too rosy; traders took the news as a sign that Greenspan could signal further rate-cutting in Wednesday's House testimony. After hearing the news, former Fed governor Wayne Angell of Bear Stearns raised the odds of an intermeeting rate cut from 60% to 80%. However, other Fed watchers said today the Fed will likely wait until its next meeting on March 20 to cut rates. Dallas Fed President Robert McTeer reportedly said that he would prefer to wait until regularly scheduled meetings to adjust rates. The latest data on consumer confidence will be reported by the Conference Board tomorrow morning; Greenspan has said that consumer confidence is critical to avoiding recession.
Cisco
NetIQ
Portal Software
An earnings warning from Texas Instruments
Research In Motion
Yahoo
B2B stocks were strong on positive comments from Merrill Lynch about Commerce One
Some technical comments on the market: Note: We are now including charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html
The Nasdaq had a small breakout today, closing just above its January 31 downtrend line and the neckline of what could be a small inverse head and shoulders bottom (first chart). That breakout could give the Nasdaq upside potential to about 2430, but new money needs to come in above 2300, where buyers aren't showing a lot of conviction. Next resistance is the 2230-2250 range, and then the 1990 logarithmic trendline (second chart) at about 2388 (that line will be at about 2430 next month), and the September 1 downtrend line at about 2 climbed 12 to 311, and the Nasdaq added 45 to 2308. The S&P 500 rose 21 to 1267, and the Dow soared 200 to 10,642. Volume declined to 1.12 billion shares on the NYSE, and 1.82 billion on the Nasdaq. Advancers led 21 to 8 on the NYSE, and 24 to 13 on the Nasdaq. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.
fell 1 to 26 after CS First Boston cut earnings estimates on the stock. Cisco has so far held long-term support at 25. Juniper Networks
lost 2 11/16 to 72 1/16.
plunged 13 1/4 to 38 on negative comments from JP Morgan, which later said the selling was overdone. WebTrends
, which is being acquired by NetIQ, lost 6 1/16 to 18 5/8.
rose 1 1/4 to 8 5/16 on an alliance with Siebel Systems
.
weighed on chip stocks, as did more negative comments from Salomon Smith Barney analyst Jonathan Joseph, who called the peak in the semi cycle last July. Broadcom
dropped 6 7/16 to 63.
surged 4 7/8 to 45 7/8 on a deal with British Telecom's Cellnet.
tacked on 3/8 to 25 13/16 after trading as low as 23 7/16 after analysts lowered revenue estimates.
, which added 1 11/16 to 22 3/16. i2
surged 5 15/16 to 35 1/2 on a deal with Intel
, and Ariba
rose 2 to 19 11/16. Ariba will hold an analyst meeting Wednesday.