Nasdaq jumped 3% (+83)

Riz

Experienced member
1,266 5
#1
Dow Jones 10604 +32
Nasdaq 2524 +83
S&P 500 1313 +12

Nasdaq went up for the second straight session … investors poured money into some beaten-down stocks…showing increased willingness to buy on the dips…resulting significant gains in the software and Internet sectors…

A new spirit seemed to be growing among the investors: buy on the dips…replacing the recent sell and stay away sentiment…

Even Cisco which were initially slumped, as Chief Executive John Chambers said the networking giant faces a customer spending slowdown managed to reverse losses..

A rise in shares of BEA Systems (BEAS), up 14.5% to $56.25 boosted software stocks…while Internet issues recovered nicely extending Tuesday's rally…

Volume was 2.47 billion on the Nasdaq Stock Market. Market, breadth was positive, advancers outpaced decliners by 26 to 13….

Analysts started talking about the market finding a floor…and reversed investors psychology..

"For the near-term at least, lower rates have provided a floor for the market. But the prospect of shabby earnings in the fourth quarter will also create resistance," opined Standard & Poor's Sam Stovall.

While Scott Bleier, chief strategist at Prime Charter said he believes the market's in "decent shape," although he expects the averages to remain in a range in coming months…

And Standard & Poor's Sam Stovall said: "For the near-term at least, lower rates have provided a floor for the market. But the prospect of shabby earnings in the fourth quarter will also create resistance.." adding that the first months of the year will be spent in a range but that he believes prospects for stocks are bright for the second half…

On the other hand were technical analysts pointing to positive technical signals that suggest the Nasdaq may be finding its footing…

"While we have so far not seen any firm evidence of positive reversal, there is a potential pattern unfolding in the Nasdaq that suggests a short-term rally may be in the making," said Terry Danish of Investec Ernst & Co. pointing to Monday's reversal, which saw the Nasdaq recoup most of its losses late in the day….

Dain Rauscher's Robert Dickey said "The advance-decline line is still weak for the Nasdaq but the new high/new low ratio is showing some improvement…"

Other analysts started talking about the techs representing so much potential..

“There seems to be some pent-up demand for stocks that wants to be unleashed," said Charles Payne, head analyst with Wall Street Strategies. "The percentage gains that can be made here are phenomenal…”

On the other hand The Web portal Yahoo! Inc. that has never reported a negative quarter-over-quarter earnings comparison reported that fourth-quarter earnings met analysts' expectations, but warned that first-quarter and full year 2001 earnings will be below expectations because of softening ad sales… causing the share price fall nearly 20% in after-hours trading following the announcement…

David Readerman, an analyst at Thomas Weisel Partners, said Yahoo!'s bleak forecast for 2001 is likely to continue to weigh on its shares as well as those of other companies that rely heavily on Internet advertising for their revenue…


------------------
 

Similar threads