By Clyde Noel

Stock Report

he U.S. military strikes against Afghanistan will whipsaw the stock market, but by the end of the week it should temper any major sell-offs.

By noon Monday, the tech sector led the market’s resurgence from early losses that had the Dow Jones industrials down more than 100 points. The tech sector upswing is led by semiconductor shares leading the advances.

People are worried about another attack here in the United States. The U.S. response has been fairly measured and very well telegraphed. If you’re a long-term investor, ride this one out and don’t do anything irrational, like selling out.

If there is another attack on the United States, people will be even more united than they are now. They are probably relieved the government is taking action which accounts for the lack of big sell-offs.

This was not an unexpected event that puts the markets into disarray, but how it unfolds over the next few days is the key. Investors should take a longer-term view and buy in the dips. Stocks will be the best place to invest over the next 10-20 months compared with the low interest rates on other investments and money funds.

Last week was a good week for the market with the Dow Jones industrials up 3.07 percent, Nasdaq up 7.14 percent and the Town Crier index showing a nice 8.65 increase.

We are gradually climbing out of a big hole. The technology stocks have shown a good move over the last couple of days. When looking at the long term, stick with the biggest and the best name companies because quality will be the issues institutions usually buy first.

Leading the way last week was Veritas with a 35.41 percent increase. This is a good well-run company, so wait for a pullback and buy or add to positions. It’s a long-term holding stock. Another company showing a nice increase last week was BEA Systems, up 41.61 percent.

Right now, the main concern is the renewed fear of retaliation against the United States. If that happens, it will likely hit consumer confidence and spending which are crucial elements of economic growth.

We really need the consumer to keep buying to keep us from going into a deeper recession. Otherwise, everyone will be watching TV instead of going about their normal business.

Employment figures are also a concern with mass layoffs. Over 100,000 people have been laid-off or dismissed from Silicon Valley firms. With the war, the string of layoffs has come to a halt, but consumer confidence is still a major concern.

Noel, a seasoned investor, covers the stock market for the Town Crier.