The Nasdaq market climbed to a record
high Monday, spurred by frenzied trading in Internet-related
stocks, while the broader market was uneventful as the Columbus
Day holiday slowed activity to a trickle.
The Dow Jones industrial average ended 1.58 points lower,
or 0.01 percent, at 10,648.18.
The Nasdaq Composite index jumped 29.39 points, or 1.02
percent, to 2,915.96, surpassing the record finish of 2,887.06
set on Sept. 10.
But in the broader market, declining issues led advances
1,564 to 1,364 on light volume of 656 million shares on the New
York Stock Exchange.
The Standard & Poor's 500 index dipped 0.81 of a point, or
0.06 percent, to 1,335.21.
"Nobody cares about anything at all except what it takes to
build out the Internet,'' said Scott Bleier, chief investment
strategist at Prime Charter Ltd.
"Whether its rational or not doesn't seem to matter to
investors. Money is coming out of everything else or just not
going into everything else and going into companies involved in
the build-out or the operation of the Internet,'' he said.
Bleier cited gains in stocks such as Redback Networks Inc,
up 15-5/8 to 150, BroadVision Inc, up 10-13/16 to 182-13/16 and
Qualcomm Inc, up 8-9/16 to 222-1/2.
"It's not really surprising. The Internet has been so
strong and now the networking stocks and chips are kicking in,
and I think it's going to continue,'' said Bob Kahan, an
independent trader in San Francisco.
"We have a lot of earnings from semiconductor stocks this
week, and they're going to be strong and make the numbers if not
beat them,'' he said.
The trading activity in the rest of the market was subdued
due to the holiday closing of the U.S. Treasury bond market for
"I think for the next three days the market is going to
concentrate solely on the earnings,'' said Peter Cardillo,
director of research at Westfalia Investments.
Among companies reporting their results were Abbott
Laboratories whose stock rose 12/16 to 41-7/16 after its third
quarter per share earnings increased to 38 cents from 34 cents a
Gannett Co Inc rose 11/16 to 72-11/16. The newspaper and
broadcasting giant said its quarterly earnings rose 19 percent
to a record 74 cents a share diluted.
E.W. Scripps Co declined 1-1/2 to 49-9/16. The newspaper and
broadcasting company reported quarterly earnings of 36 cents a
diluted share before one-time charges. The First Call consensus
estimate was 40 cents.
Knight/Trimark Group Inc lost 3-39/64 to 26-3/8. The
securities firm, the biggest market-maker on Nasdaq, said it
expects its third-quarter profits to be in the range of 17 to 19
cents a share, well below the consensus forecast of 30 cents per
share. The company cited sluggish trading volume, reduced
volatility and a new pricing plan for customers.
Tokheim Corp was down 2-3/16 at 4-5/8. The company, which
makes equipment used to dispense gasoline and other fuels, said
it expects to post a loss for the third and fourth quarters due
to merger-related slowdowns in spending by major oil companies.
Global Crossing Ltd fell 1-7/16 to 35-1/16. The company
agreed to buy Racal Telecom of Britain in a $1.65 billion
transaction. Global Crossing's offer topped that of rival suitor