Archive for Saturday, September 23, 2000

Markets welcome reprieve

Dow, Nasdaq recover Friday from early lows

September 23, 2000

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— Stocks staged a notable recovery Friday after being dragged down most of the day in the wake of another profit warning by a bellwether company this time chip maker Intel Corp.

Bargain hunters moved in about midday, helping the Dow Jones industrial average close up 81.85 at 10,847.37. The blue-chip index had dropped more than 140 points early in the session.

Broader stock indicators also closed lower, but well above their lows for the day.

The Nasdaq composite index finished down 25.11 at 3,803.76, regaining nearly all of the losses that saw the technology focused index fall 214 points in midmorning. The Standard & Poor's 500 index closed down 0.33 at 1,448.72.

"We got a reprieve from the hangman today," said Al Kugel, senior investment strategist at Stein Roe & Farnham in Chicago. "Things looked a little bleak this morning."

News that the seven largest industrial nations had stepped in to help buoy the ailing euro currency, as well as strong speculation throughout the day that the Clinton administration planned to dip into the nation's oil reserves to ease rising energy prices a speculation eventually borne out helped offset the near panic caused by Intel's profit warning.

Intel, the world's largest chip maker, announced after the close of Thursday's trading session that it expected third-quarter revenues to fall below expectations. The company specifically blamed a falloff in demand in Europe for the weaker results.

The news prompted analysts at several investment banks to lower their ratings on Intel's stock Friday, further fueling the atmosphere of panic among investors in one of Wall Street's most widely held stocks.

Shares of Intel traded hands at breakneck speed on the Nasdaq. Volume reached 304 million, shattering the all-time daily Nasdaq volume record of 172 million shares set by Oracle Corp. in December 1997. Intel's average daily volume is 38 million shares.

Intel's shares closed down $13.55, or 22 percent, to $47.94.

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