Nasdaq fell for a third straight session…


Experienced member
Dow Jones 10621 -41
Nasdaq 2396 -12
S&P 500 1296 -2

It was still concerns about slowing economic growth and its impact on earnings
Causing Nasdaq fall for a third straight session… fortunately well off days lows which was once 2,299 as sellers stood aside late before the market closed… the Nasdaq 100 Index however ended up +13.69 to 2,281.54…it was the gains in shares of JDS Uniphase (7.4%); Qualcomm (6.6%); Applied Materials (7.2%); Dell Computer( 0.7%); and Sun Micro ( 0.7%) pushing Nasdaq 100 up…volume was 1.84 billion on the Nasdaq Stock Market..

Net stocks took the biggest lumps, the Goldman Sachs Internet Index was down 3.2%. But the index was well off its losses in late afternoon.

Chip stocks however were up after two days of losses...

It appeared that noone wanted to buy ahead of the fourth-quarter results which might be full of financial disappointments…

"This really is a bad period in terms of warnings," said Chuck Hill, director of research at First Call adding that a record 574 companies have warned their financial results for the latest quarter will miss Wall Street's targets..

Still many of these stocks ended well above their worst levels of the day…as if signalling that the losses have gone too far and are creating an opportunity to buy.

"I firmly believe these markets are so overdone, so oversold," said Linda Jay, NYSE trader at RPM Specialists.

Only it looks like investors won’t be rushing into the market until the Fed cuts rates again at its meeting later this month…

"I think we'll start getting investors into the marketplace later in the first quarter," said Art Hogan, chief market analyst at Jefferies & Co.

Concerns of the economic to turn into a recession are also spooking investors..

"The greatest fear the market is facing now is that of a cyclical recession," said Mike Sheldon, chief market strategist at Spencer Clarke…

On the other hand Morgan Stanley Dean Witter's chief economist Stephen Roach Said, "The risks remain very much on the downside, and I would now attach a 45 percent probability to a full-blown global recession. We are cutting our estimate of world gross domestic product growth for 2001 to 2.9 percent from 3.5 percent,"

However , Merrill Lynch's chief investment strategist Christine Callies expects profit growth for S&P 500 companies to come in at 13.8 percent for 2000 and at 4.1 percent in 2001.
"Although the relationship between Fed policy and tech demand is imprecise, the shares tend to bottom ahead of profits and before there is clear evidence of a turn in orders and shipments. But the dips," he said...

Looks like until they decide if it is going to be a slow landing or a cylical recession, whether there will be further rate cuts enough to prevent a full scale recession, it is going to be bounces up and down or the other way round…