Nasdaq climbed 45.83 points…

Riz

Experienced member
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Nasdaq 2539 +46
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Nasdaq climbed up 1.8 per cent as money started coming off the sidelines and bargain-seeking investors sent U.S. stocks surging. The common feeling was that much of the bad news had already been factored into badly hammered stocks.

Chip equipment and communication stocks recorded greatest gains…among them Vitesse Semi, up 8.9%, Novellus, up 8.9%, KLA-Tencor, up 9.3%, and Teradyne, up 6.3%..only Intel (INTC) failed, down –31…

It looks like investors are starting to anticipate rate cuts from the Fed, which are expected to commence in late January…thus giving hope for further rallies once the Fed starts the rate cuts…

Valuations seems to be attracting more attention among analysts..
"Hopefully we can walk away from 2000 with some valuable lessons: Leverage hurts and valuations do matter.." said Barry Hyman, chief investment strategist at Weatherly Securities.

Todays gain, led by the chip sector pushed Nasdaq up for the third time in four session, which is something greatly missed by tech investors…

Still there were plenty of analysts keeping their pessimistic views..
"People are coming in to see if there are any bargains but I wouldn't read too much into it -- it's just a bounceback," said Brean Murray's Coolidge.

With only two trading sessions left in the year, Nasdaq is shaping up for its worst year ever, down 37.6% from the start of 2000….even though Nasdaq winners outpaced losers 2,185 to 1,822, while more than 1.96 billion shares were traded… It still needs to finish above 2641 on Friday to avoid being the most disreputable year.

One thing giving investors hope was that Network Associates (NETA)’s plunge (-$7.19, or 61%), after warning of an unexpected fourth-quarter loss, citing a shortfall in customer demand did not cause much panic among investors this time, for a change it was taken as their own problem and did not stop other tech stocks climbing up…

Let’s see how the Techmark responds to todays gains on Nasdaq…




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