Dow Wallows; Net Stocks Push Nasdaq to Record
Most stocks fell Monday in sleepy post-Christmas trading, although it was business as usual in the high-flying Internet group, which drove the main Nasdaq market index to another record.
Meanwhile, Treasury bond yields pulled back. Oil prices edged up after Kuwait warned that without production cuts among major producers, oil could plunge to $5 a barrel.
On Wall Street the Dow Jones industrial average edged higher, rising 8.76 points to close at 9,226.75 and extending its winning streak to seven sessions.
But in the broad market losers topped winners by 17 to 14 on the New York Stock Exchange and by 23 to 18 on Nasdaq.
NYSE volume was very slow, though Nasdaq trading was fairly brisk, with money continuing to chase after Net-related stocks.
Net-stock demand helped lift the Nasdaq composite index 17.27 points, or 0.8%, to a record 2,180.30.
With just a few days left before the close of a bumpy year for stocks, Wall Streeters who bothered to show up for work Monday were playing it cautiously to preserve what has shaped up as a surprisingly happy ending to 1998.
As recently as early October, the Dow was trading in the 7,000s and heading for its first losing year since 1990, plagued by a global financial crisis that threatened to send the U.S. economy into recession.
Now, thanks to interest rate cuts by the Federal Reserve, the Dow is up 16.7% year-to-date, the Standard & Poor’s 500 index is up 26.3% and Nasdaq is up 38.8%.
The Dow has gained 436 points just in the last seven sessions and now sits less than 150 points from its Nov. 23 record high of 9,374.27.
But in this market, the only things some investors are interested in is stocks that end in “.com” or “.net.”
Amazon.com led the group higher Monday, soaring $27.13 to a record $351.94 amid continued frenzied buying tied to reports that online holiday sales in general were above expectations.
In the bond market Monday buyers moved back into Treasury issues in the wake of the recent jump in yields.The buying pushed the yield on the bellwether 30-year T-bond down to 5.15% from 5.21% last week.
In commodity markets natural gas prices dove, while crude oil rose 23 cents to $11.46 a barrel. Kuwaiti Oil Minister Sheik Saud al Sabah told a two-hour news conference that without major production cuts, “I fear that matters go out of hand . . . and then see the barrel price under $5. The issue now requires wisdom.”
He said OPEC could hold an emergency meeting to tackle historically low prices ahead of its scheduled March conference.
Among Monday’s highlights:
* In the Internet group, SkyMall surged $23 to $35.56 as the most active Nasdaq issue after the in-flight retailer reported that its Internet sales have more than tripled to $1 million in the fourth quarter.
And clothing retailer Active Apparel Group zoomed 820%, rising $10.25 to $11.50 after announcing the launch of its Web site.
Other winners included Yahoo, up $28.38 to $275.50; America Online, up $20.63 to $157.25; Ubid, up $18.31 to $139.94; and Infospace.com, up $4.31 to $47.06.
* By contrast, shares of many traditional retailers declined. Wal-Mart Stores slumped $1.25 to $79.88, Kmart fell 31 cents to $13.81 and J.C. Penney lost $1.06 to $47.63.
* Blue-chip gainers included IBM, up $1.31 to $189.25; Caterpillar, up $2 to $44.94; United Technologies, up $2.13 to $108.81; and Lilly, up $2 to $87.25.
* Some of last week’s big winners pulled back, including Vail Resorts, down $2.81 to $23.19, and Sotheby’s Holdings, down $3 to $35.
* Among Southland issues, Aames Financial leaped $1.44 to $4. Standard & Poor’s said it could upgrade the high-risk lender’s debt rating--now CCC-plus--to the B category, based on its recent announcement of a capital-infusion plan from Capital Z Financial Services.
* DaimlerChrysler jumped $4.06 to $98.25 after a bullish sales and earnings outlook from the company.
Market Roundup, C12
