MARKET REPORT
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Nasdaq and small cap stocks ended Monday's session mixed as negative
analyst comments helped push tech stocks into losing territory.
Small cap indexes headed lower in the last few minutes of trading, as the
Russell 2000 leading index of small cap stocks slipped 0.17 to 471.70,
while the Wilshire 1750 lost 1.45, or 0.2%, to 763.65. The S&P 600 eked out
a gain of 0.29, or 0.1%, to 208.46.
Negative analyst comments on a number of computer-chip stocks, including
Broadcom Corp. (NASDAQ: BRCM) and Altera Corp. (NASDAQ: ALTR) chipped away
at the Nasdaq Composite Index. The tech-heavy index fell 23.89, or 0.8%, to
2880.49, while the Philadelphia Semiconductor Index plunged 46.60, or 6.9%,
to 628.08.
"Here and there, technology and Internet stocks are trying to continue
their recovery," said Donald Selkin, market analyst at Joseph Gunnar & Co.
But "we're not getting that broad-based move into technology like we saw on
Friday."
Investors are seeing continued follow-through buying from Friday, noted
Selkin. "But it is more concentrated in the Dow than in the Nasdaq."
Momentum early in the session was in part attributed to results of
Florida's presidential election, which named Texas Gov. George W. Bush the
winner of the Sunshine State's 25 electoral votes.
The lack of any final resolution to the election, though, is still cited
for some of the volatility in U.S. stocks.
"The quicker Gore concedes the better the market and the country will be,"
noted Kenneth Sheinberg, head of listed treading, Cowen & Co, who added
Gore's creating overall apathy in the market.
Retail stocks were credited in part with giving the Dow Jones Industrial
Average its strong gains for the session. The blue chip index gained 75.84,
or 0.7%, to 10,546.07, while the S&P 500 added 7.20, or 0.5%, to 1348.97.
Better-than-expected retail sales over the weekend contributed to an upward
push in bellwethers Home Depot Inc. (NYSE: HD) and Wal-Mart Stores Inc.
(NYSE: WMT). "That's why the Dow is leading the way today after not being
the leader on Friday," Selkin said.
He added that a lot of the stocks that would benefit from a Bush
presidency, such as Microsoft Corp. (NASDAQ: MSFT), Philip Morris Cos.
(NYSE: MO) and pharmaceuticals such as Merck & Co. (NYSE: MRK), are doing well.
LJR Redbook reported today its E-tail Stock Index rose 2.3% in the week
ended Nov. 24, compared to a 2.2% drop in the S&P 500 over the same period.
Major winners for the week were 1-800-Flowers.com Inc. (NASDAQ: FLWS), up
19%, and FTD.com Inc. (NASDAQ: EFTD), up 16%. Major losers included Delia's
Corp. (NASDAQ: DLIAD), down 28%, and Peapod Inc. (NASDAQ: PPOD), down 26%.
Within small cap stocks, Harmonic Inc. (NASDAQ: HLIT) became the latest
broadband-solutions provider to declare its revenues would be hurt by a
decision by AT&T Corp.'s (NYSE: T) AT&T Broadband to halt product
deliveries for the rest of the year. Harmonic dropped to 9 7/8, down 9/16,
or 5.4% in Monday's trading.
C-Cor.net Corp. (NASDAQ: CCBL) said AT&T Broadband's request to hold
shipments for the rest of the year shouldn't have a material effect on the
company's current quarter. Shares of the broadband communication services
provider gained 1 7/16 points, or 18.8%, to 11 7/16.
Earlier Monday, the National Association of Realtors reported existing-home
sales fell by 200,000, or 3%, in October. The trade group said sales fell
to an annual rate of 4.96 million homes from a revised 5.16 million in
September.
In Canadian trading, the Toronto Stock Exchange advanced 102.90, or 1.1%,
to 9127.40, while the Canadian Venture Exchange dropped 36.47 points, or
1.2%, to 3033.39.
In currency markets, the Canadian dollar added 0.1% to US$0.6515 from
US$0.6502, while in late New York trading, the euro edged higher to US$0.8515.
In commodities news, energy futures ended lower after a choppy day of
trading. January crude oil futures surrendered 2 cents, or 0.1%, to $35.38,
while December natural gas lost 21 cents, or 3.2%, to $6.37. December gold
gained $3.60, or 1.4%, to $270.30.
AI
