Tech stocks catch bid
By Emily Church and Julie Rannazzisi,
Last Update: 8:27 AM ET Jan 31, 2000
NEW YORK (CBS.MW) -- Key U.S. technology stocks are catching a
bid in European and early electronic U.S. trading, giving every indication
that the market's are going to try to recoup on the open Monday.
IBM (IBM: news, msgs), Intel (INTC: news, msgs) each have notched a
1/2 point higher, according to market makers and Qualcomm (QCOM:
news, msgs) tacked on 2 points. See Indications.
Stocks sold off sharply Friday as more economic reports pointed to
building inflationary pressures. This week, action is largely expected to
stay within a range ahead of the Federal Reserve's rate-setting policy
committee meeting starting Tuesday.
S&P Futures were 3 points higher as the opening bell in New York
loomed, losing a bit of steam. Some market participants are expecting to
see a rally after the Fed announces its decision on the direction of rates.
"The market seems washed out," said Art Hogan at Jefferies & Co.
"They'll celebrate whatever the Fed does."
On Friday, the Dow Jones Industrial Average tumbled 289.15 points, or
2.6 percent, to 10,738.87 -- its first close below the 11,000 level since
The Nasdaq Composite
dropped 152.49 points,
or 3.8 percent, to
3,887.07, its first close
below 4,000 since Jan.
13. It was the tech
gauge's second largest
point decrease in
Friday's astoundingly strong economic data is causing market participants
to re-evaluate how aggressive the Fed will be, said Terry Gabriel,
technical analyst at IDEAglobal.com.
The uncertainty of whether the central bank will need to hike rates by 50
basis points either at this week's Fed meeting or in March will keep a
cloud hanging over the market going forward.
Gabriel said the market may have to wait until March to get the answer.
"And this is a market that has no patience," he added.
Gabriel said Friday's employment report is likely to be strong, giving
stocks only a short-lived chance to stage a relief rally after the two-day
Fed meeting ends on Wednesday.
Events this week
Monday: December personal income and personal consumption
expenditures; January Chicago Purchasing Managers' index. Tuesday:
January National Association of Purchasing Management index,
December construction spending. Wednesday: December new home
sales, December leading economic indicators. Thursday: December
factory orders, weekly initial claims. Friday: January non-farm payrolls.
The Standard & Poor's 500 Index shaved 2.7 percent while the Russell
2000 Index of small-capitalization shed 2.4 percent on Friday.
The 30-year Treasury bond climbed for the sixth straight session, surging
29/32 to yield 6.445 percent on Friday.
In currency markets, the dollar surged against the yen and the euro.
Dollar/yen changed hands at 107.11, up 2.0 percent from the previous
close after climbing to a high of 107.25 in intra-day dealings. The euro
closed below parity for the second straight session, ending off 1.3 percent
to 0.9750 against the dollar. See international indexes and view latest