- Published on Tuesday, 02 May 2000 20:25
- Written by Clyde Noel
Playing the stock market in today's market place is like driving in the rain with a slow windshield wiper. You have to look closely at where you're going and make sure your seat belt is hooked.
After a good previous week, the Dow dropped 110 points to 10,734, but the Nasdaq increased 217 points to 3,860. The Town Crier stock index jumped 10.50 percent for one of its best results in weeks.
Technology companies reporting earnings, or good future prospects, provided positive valuations. Leading the increases for the week were: Apple Computer, up 6 points; Adobe Systems, 8; Applied Materials, 17; BEA Systems, 11; Intel, 20; KLA-Tencor, 9; Network Appliance, 17; Rambus, 63; Varian Semiconductor, 27; and Yahoo!, 7 points.
Town Crier stocks making the news this past week were: Input Software, which changed its name to Action Point and was down 33 percent; and BEA Systems and Elantic, which split their stocks, 2-for-1.
Of interest to holders of technology issues, Barron's conducted a big money poll on what the bulls and bears expect to happen the rest of this year.
The bulls view the current turmoil as only a correction and not the beginning of a bear market. They expect the Dow to finish the year at 11,077.31 and the Nasdaq at 4,996.59.
On the other hand, the bears believe the market correction will continue as stock valuations remain too high. The bear market will start when the majority of investors consider the market to be a buying opportunity.
The bears expect tech stocks to continue to tumble and drag the Dow down.
That will put pressure on the dollar and with the Federal Reserve increasing the interest rates May 16, it can lead to a recession next year.
The favorite stocks of the majority of the money managers were Cisco, at the top of the list, followed by Intel, General Electric and Microsoft.
Looking at present conditions, this columnist predicts that tech stocks will continue to rise because alternatives are less attractive.
Noel, a seasoned investor, covers the stock market for the Town Crier.