New York Market: Nasdaq rally wrong-foots the experts
Sunday 07 November 1999
The Nasdaq index, one-quarter of which is made up of technology shares, has benefited as investor concerns about the year 2000 bug have lessened. In addition, technology companies in the Standard & Poor's 500 index posted an average 33 per cent profit growth in the third quarter, twice the average of recent years.
"Everyone's discounting the Y2K concerns, looking forward to the new year and anticipating a huge first quarter,'' said Coletta Dorado, equity trading director at JW Genesis Securities in Florida.
For the week, the Nasdaq rose 4.6 per cent and the S&P 500 rose 0.5 per cent. The Dow Jones Industrial Average, including Intel and Microsoft for the first time, fell 0.2 per cent.
The Nasdaq has returned 42 per cent this year, and the Nasdaq 100 index, made up of the largest stocks, 50 per cent. The S&P 500, by comparison, has returned 13 per cent.
Modest by comparison, the S&P 500's gain has still been driven by technology shares. Of the top 10 contributors to the index's advance this year, seven are computer-related: Microsoft, Intel, Cisco Systems, Nortel Networks, America Online, Texas Instruments and Sun Microsystems.
US Treasury bonds, which have been down for most of the year, surged last week, driving 30-year yields down 33 basis points to 6.05 per cent. The biggest gain was on Friday, when a government report showed slower- than-expected wage growth.
Two weeks ago, many people thought the Federal Reserve would raise interest rates before the year-end. Fewer feel that way now. Bonds' losses for 1999 swelled to 12.5 per cent on 26 Oct- ober on inflation concerns, putting them on course for their worst year ever. The loss through Friday narrowed to 8.3 per cent.
The wage figure "changed the picture quite a bit'', said Henry Willmore, a senior economist at Barclays Capital Group, one of 30 primary dealers authorised to trade directly with the Fed.
Of the primary dealers, 17 now expect no more rate increases this year. The other 13 see an increase on 16 November, and none on 21 December. Before the report, most had predicted an increase this month.
Malaysia Airlines plane crash exposes alarming flaw in airline security: over one billion flights made last year without stolen-passport check
Kim Jong-un wins 100% of the vote in North Korean elections
Teacher shows sex tape featuring herself to pupils during class by mistake
Malaysia Airlines Flight MH370: Oil slicks in South China Sea ‘not from missing jet’, officials say
Swarm of killer bees sting woman 1,000 times
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 3 Teacher shows sex tape featuring herself to pupils during class by mistake
- 4 David Cameron resorts to paying for Facebook fans because not enough people like him
- 5 Steve Irwin’s final words: Cameraman present at death opens up about deadly stingray attack for the first time
iJobs Money & Business
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£55000 - £70000 per annum + benefits: Pro-Recruitment Group: In-House Corporat...
£80000 - £100000 per annum + benefits: Pro-Recruitment Group: In-House Opportu...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...