|Stocks May Jump Higher After Friday Fall
NEW YORK (Reuters) - Stocks were expected to rebound on Monday as Wall Street shifts cash
back into a market that was battered down to correction territory on Friday.
``We're overdone on the down side,'' said Arthur Hogan, chief market analyst at Jefferies & Co.
``We're going to bounce nicely for no apparent reason except for the fact that we are short-term
oversold. Across the board we've got some good news and I think we'll probably have a nice little
rally at the opening here,'' he said.
The Standard & Poor's 500 futures index for March rose 3.70 points to 1,400.30 while the Nasdaq
futures index for March was up 37.50 points at 4,020.00.
``Looks like we'll crank 'em up a little bit this morning,'' said Bill Meehan, chief market analyst at
Cantor Fitzgerald. ''Every down day is nothing but an opportunity to get rich in a couple of days.''
The 30-year U.S. Treasury bond was off 5/32, with the yield at 6.28 from Friday's close of 6.27
percent. The long bond's price rebounded on Friday from sharp losses Thursday as investors parked
money in the bond market while blue-chip stocks slumped.
The Dow Jones industrial average (^DJI - news) dropped 218.42 points, or 2.05 percent, to end at
10,425.21. The heavily tech-driven Nasdaq composite index (^IXIC - news) lost 90.18 points, or
2.01 percent, to 4,395.45 a day after scoring a new high of 4,485.63.
The broader Standard & Poor's 500 Index (^SPX - news) slipped 29.71 points, or 2.10 percent, to
The broad losses put the brakes on a run-up in high-flying stocks, such as computer networkers,
chipmakers and biotechnology, and struck deep into traditional stocks including automakers, chemical
and paper companies.
Analysts said economic data will weigh heavily on the market this week, but that Monday's docket
Wall Street is expecting data on wholesale and retail prices, which will help economists gauge
inflationary pressures and the threat of future interest rate hikes. Federal Reserve Chairman Alan
Greenspan will give his semi-annual Humphrey-Hawkins testimony before Congress on Thursday.
Earnings reports will begin to taper off this week. Still, two Dow components are scheduled to post
results including Wal-Mart (NYSE:WMT - news) on Tuesday and Hewlett-Packard (NYSE:HWP -
news) on Wednesday.
Among the stocks expected to move on Monday, Internet venture firm CMGI Inc.
(NasdaqNM:CMGI - news) said it would pay $920 million in cash and stock for Tallan Inc., a
provider of Internet and e-commerce professional services. The purchase should boost CMGI
Solutions' billable resources by 350 percent, the company said.
CMGI shares closed Friday down 5-48/64 at 112-1/16.
U.S. coffee shop group Starbucks Corp. (NasdaqNM:SBUX - news) said it was joining forces with
Internet-based delivery company Kozmo.com to transform a virtual order into coffee, tea and a snack
or sandwich in a deal worth $150 million to Starbucks over five years.
Starbucks shares ended Friday up 7/8 at 32-7/8.
Switzerland's price regulator announced the launch of a probe into Microsoft Corp.'s
(NasdaqNM:MSFT - news) software prices after an initial investigation backed complaints from
consumer groups that they were paying too much. Microsoft shares dropped 6-1/16 on Friday to
close at 99-15/16.
Ford Motor Co. (NYSE:F - news) plans to enter a bidding war against General Motors Corp.
(NYSE:GM - news) for South Korea's Daewoo Motor DAEW.CN, the Wall Street Journal reported.
Daewoo said it planned to send invitation letters this week for its auction to about 10 potential
Ford shares closed Friday off 1-1/16 at 45-15/16. GM ended down 2-15/16 at 73-15/16.