Nasdaq Has Best Close in a Year

TheStreet.com ^ | 7/2/02 | Eric Gillin

[Steven W.]

An upgrade of Microsoft (MSFT) and unexpectedly strong guidance from PeopleSoft (PSFT) lifted the Nasdaq to its highest close in over 13 months Thursday and helped spark a triple-digit gain on the Dow.

The Dow Jones Industrial Average closed up 101.89 points, or 1.1%, to 9142.84, ending at its session high. The Nasdaq rose 38.64 points, or 2.4%, to 1678.77, while the S&P 500 was up 11.44 points, or 1.2%, at 993.76. The last time the Nasdaq closed higher was on May 23, 2002, when it ended at 1697.63.

Markets were in positive territory the entire session, getting an early spark after Merrill Lynch upgraded Microsoft to buy from neutral and added the software giant to its "Focus One" list. Merrill also raised its 2004 profit forecast for Microsoft and said the company could potentially increase its dividend payout. Shares rose 73 cents, or 2.8%, to $26.88, helping boost the Dow.

In a separate note, Merrill added Wal-Mart (WMT) to its list of favored stocks. Shares of the world's largest retailer rose $1.33, or 2.5%, to $55.68.

"The upgrades definitely helped us add on to yesterday's upswing, but things should probably slow down later today and with the half-day tomorrow," said Giri Cherukuri, head trader at OakBrook Investments. "Along with the factory orders, I'd say that's why we're up today, but we'll have more of the same up-and-down action."

...

Positive economic news, released just after the bell, added fuel to the morning's upside move, which comes on light volume in a holiday-shortened week. Factory orders for May showed 0.4% growth, which is better than the zero-growth forecast from Wall Street.

...

Overseas markets were higher following Tuesday's strong stateside finish, with London's FTSE 100 closing up 1.1% at 4007 and Germany's Xetra DAX ending up 3% to 3241. In Asia, Japan's Nikkei surged 3.4% to 9592, while Hong Kong's Hang Seng rose 0.3% to 9602.

...

[Steven W.]

Another bull run after yesterday's dramatic reversal following the long-expected 5% correction, leaves the DemoncRATs, doom and gloomers & Puplava's disciples praying for terrible employment news or terrorist threats leading into 4th of July holiday weekend.

[PhiKapMom]

Your comments are correct IMHO! This is great news!

[SouthParkRepublican]

"This is great news!

Let's hope it lasts! I think that people became so disenfranchised with tech's after the buble burst that they were oversold and their future potential neglected.

Cood be good for Dubya!

[PhiKapMom]

I would agree with you -- some people seemed to panic which drove the market down more. Have always been told to not invest more than I could afford to lose in the stock market so if the market went down I could ride it out, because it will eventually start back-up!

[Sunshine Sister]

Double great news! Maybe my 401k will look a little healthier tomorrow!

[hchutch]

The loud screaming you hear is coming from the DNC.

Damn, I think my 401K is gonna look okay...

[Steven W.]

it's not only / just that - there are still a lot of people who are extremely bearish and shorting this market - they're really taking a killing and one of the reasons why so many protest so much.

[what's up]

Bush has laid a good foundation under the country; some faith in political leaders has been restored, fear has been diminished with a resounding victory in Iraq and progress in the Middle East.

IMO we are out of the woods of the horrendous latter Clinton years and 9/11. The stock market will not climb dramatically; however it will do something better. It will rise slowly and consistently and the overall economy will do the same.

[Dog]

Thanks for the ping.

[Citizen of the Savage Nation]

Another bull run after yesterday's dramatic reversal following the long-expected 5% correction, leaves the DemoncRATs, doom and gloomers & Puplava's disciples praying for terrible employment news or terrorist threats leading into 4th of July holiday weekend.

Funny. That's what they were doing last year, too. At least then, the falling market made it fashionable to do so. No longer.

What's your take on GE's lowering of profit forecast for next year?

[Momaw Nadon]

Tom Daschle is deeply saddened.

[sourcery]

Check out today's closing NYSE TICKS: 1514. That's the highest daily close since August of 1987. Intraday, there has been exactly one higher $TICK reading in the same time frame: January 3, 2001 (1532)--and that was sparked by a surprise Fed rate cut announcement.

The Dow topped on January 4, 2001 at 11,028. A month later, the Dow briefly exceeded its Jan 2001 high, peaking at 11,035 on February 6, 2001. The Dow wasn't higher for another year, and its price history since then should need no elaboration.

Bottom line: frequent extreme $TICK readings generally indicate that a significant change of trend is nigh. Extremely low $TICKs signal selling panics, which will soon be reversed. Extremely high $TICKs signal buying panics, which will also soon be reversed. Today was the most extreme buying panic in sixteen years.

[Soren]

Stocks have reached what looks like a permanently high plateau.

[SamAdams76]

I'm glad I held on to my Microsoft stock and continued to buy Wal-Mart stock during this past three years of investor hell. And I'm even happier I dumped AOL

[rwfromkansas]

This could just be a bull market rally. Let's not declare victory yet. If this is still happening with a mostly positive streak in 3 months, then I think it would be time to say it looks like the economy may be starting to get back on track finally.

[rwfromkansas]

Alright, in non-investor terms, you are saying that this rally will end soon? Is that correct or am I not understanding you correct?

[sourcery]

Alright, in non-investor terms, you are saying that this rally will end soon?

Yes.

[sourcery]

This could just be a bull market rally. Let's not declare victory yet. If this is still happening with a mostly positive streak in 3 months, then I think it would be time to say it looks like the economy may be starting to get back on track finally.

One should always be ready and willing to reasses one's views and opinions as the situation unfolds. The only bit of Keynesian wisdom I ever qoute favorably: "The market can remain irrational far longer than you can remain solvent." That's a two-edged sword, by the way. It will inflict severe wounds on Bulls and Bears alike.

[Billy_bob_bob]

Where can I find this NYSE TICKS listing? I'd like to be able to keep track of this information for future reference.

[sourcery]

$TICks