Daily market summary and stock picks

The markets went wild on good economic news. Gainers included: 3Com, Alston SA, Altera, American International Pet, Amgen, AMR, AOL, Applied Digital, Ariba, AsiaInfo Holdings, Atlantic Phone, AT&T, Aurora Foods, AutoImmune, Borders Group, Cardiac Pathway, Cisco Systems, Citigroup, Comcast, Compaq, Con Choice, Conexant System, Continental Airlines, Crown, Cork & Seal, Dell, Disney, EMC Corp, EPL Technology, Eshed Robotec, ESPS, Exide, GE, General Chem, General Magic, Global Crossing, Healthsouth, IBM, Infinite Group, Intel, KCS Energy, Kmart, La Jolla Pharmaceutical, Lucent Technologies, Lyondell Chem, Manor Care, Mattel, Metrocall, Microsoft, Moyco Tech, Mylan Labs, Neoware System, Nexell Therapeutic, Next Level Communications, Nortel Networks, Northwest Airlines, Nymox Pharm, OmniCare, Oracle, Ostex International, Paging Network, Palm, PE Corp, Pfizer, Pharmos, Philip Morris, Qwest Communications, Register.Com, Revlon, SBC Communications, Shared Medical System, Smart & Final, Socrates Tech, Staples, Sun Microsystems, SwissCom AG, Tele Celular Sul Participacoes SA, Tele Nord, Tele Nort Cellular, Terex Corp, Texas Instruments, ThermoGenesis, Tyco International, Universal Display, USWest Comm, UTStarcom, Versata, Virtual Com, Voxware, and Wal-Mart.

The markets had a weekend present from the US Labor Department today (See Below). The NASDAQ set the third record close for the week as technology, semiconductor, biotechnology, and nearly every sector rose. Volume was very heavy, as the NASDAQ closed with a volume of 2.13 billion shares traded, the second highest on record. Advancing issues outstripped decliners about 3 to 1.
US Labor department reported that nonfarm payroll for February rose a meager 43,000 - Economist were expecting 206,000. This is a strong sign that the economy is cooling off.
US Labor Department also reported that the February Unemployment rate, a strong measure of inflation, rose 0.1% to 4.0%. Economist were forecasting 4.0%. Average Hourly wage rose 0.3% to $13.53, in line with expectations; this all means the economy is slowing enough to tame inflation, and possibly the Federal Reserve may hold off on an Interest rate hike; please visit our The Federal Reserve Monetary Policy Watch page for more details.
Microsoft reported that it has sold a whopping 500,000 units of Windows 2000 since its debut on February 17th; visit our Quarterly Forecast to read more on our detailed Microsoft projections.
Qwest Communications is reported to be interested in a minority stake in Next Level Communications.
Oil futures closed lower by 18 cents to $31.51 per barrel, in reaction to US Energy Secretary Bill Richardson's comments that the strategic oil reserves are being considered in hopes of alleviating the oil problems.
Airline Stocks performed very well due to Mr. Richardson's comments.
IPOs had a field day today. Stocks like UTStarcom, AsiaInfo Holdings, Versata, and Register.Com debuted and closed very high.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Altera, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Metrix One, Microsoft, Neoforma.Com, Netsolve, New Tel, Niku Corp, Novell Networks, Novellus System, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Palm, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Register.Com, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, UTStarcom, Va Linux, Venture Catalyst, Versata, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, Safeguard Scientifics, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10164.92 = +26.99

NASDAQ: 4754.51 = -29.57

S & P 500: 1381.76 = +2.57

The markets closed mixed; despite Palm's debut, the NASDAQ still lost over 29 points as profit taking in the Biotechnology sector pulled the index down; the Dow, however, gained almost 27 points. Gainers included: AAstrom Biosciences, Aetna, Amgen, Ariba, AT&T, Aurora Foods, Bell South, Bristol Myers Squibb, Celestica, Cisco, Comm. Intelligence, Compaq, Con Choice, Dell, Discovery Labs, DoubleClick, EEX Corp, Enterprise Oil, Fort James, France Telecom, Galileo International, GE, Gensym Corp, Group 1 Auto, Health Management, IBM, Key Productions, Korea Telecom, Lucent Technologies, MCI Worldcom, Microsoft, MP3.Com, Nexell Therapeutic, Palm, Paradigm Med., PHC inc, Priceline.Com, Qwest Communications, Range Resources, R&B Falcon, Roper Industries, SBC Communications, Schlumberger, Scientific-Atlanta, Smith Micro, Softech, Spyglass, SwissCom AG, Switchboard, Thermo Electron, Tricom SA, Tyco International, Unit Corp, Wal-Mart, and Zapata Corp.

Trading volume on the NASDAQ was heavy at 2.1 billion shares, second only to yesterday's 2.32 billion, despite profit taking in Semiconductor Chip and Biotechnology sectors.
Palm's IPO debuted today and closed hot; 3Com, the former parent of Palm, was dumped as it lost over 22 points.
Online retailers suffered a blow today, after the US commerce department reported that, online sales totaled $5.3 billion in Q4, a meager 0.6% of total retail sales.
US Same-Store sales rose 5.6% in February, as consumers continue to spend aggressively.
Wal-Mart reported same-store sales increase of 6.1% in February, well above national average. The company also named a seasoned online retail executive to its online unit; Wal-Mart was also upgraded by Morgan Stanley Dean Witter.
Oil futures closed about the same, as April crude eased 8 cents to close at $31.69 per barrel, after flirting above the $32 mark; analysts feel the proposed increase will be too little to have that much of an impact on prices, as most went snapping up oil exploration stocks.
Ariba has scheduled a 2-for-1 stock split.
DoubleClick announced that it will hold off from putting people's names and addresses to its ad tracking system until privacy issues are ironed out between the government and the industry.
Spyglass has signed an agreement with Sony to license its browser technology for Sony's digital cables set-top boxes.
US Jobless claim for week ending February 26th. stood at 275,000 - still too low a drop, and signaling that the economy is not slowing as much.
MP3.Com's CEO explained that the RIAA, the recording industry's trade group, will have a hard time proving that its My.MP3.Com technology, which allows people to copy their own CDs unto their web pages, is hurting CD sales. MP3.Com claims its technology is rather increasing sales (based on data it has about its alliances with individual record labels); MP3.Com stocks almost doubled today.
Smith Micro Software decided to form a wireless and broadband division.
AFTER CLOSE: Qualcomm announced it has completed the One Billion Dollars acqusition of SnapTrak inc.; Qualcomm shares are gaining on Island, the after hours ECN.
Telecom Takeover rumors continue to push up Telecom stocks; Deutsche Telecom alone is rumored to be interested in Qwest, Global Crossing & PSINet.
France Telecom and KPN Telecom NV of the Netherlands are reported to be interested in Orange PLC, the British Wireless company.
SBC Communications & BellSouth are planning to merge their wireless systems so as to become dominant players, it has been confirmed.
Cisco Systems has signed an agreement with Diyixian.Com of Hong Kong to build an Internet Network.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Metrix One, Microsoft, Neoforma.Com, Netsolve, New Tel, Niku Corp, Novell Networks, Novellus System, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, Safeguard Scientifics, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10137.93 = +9.62

NASDAQ: 4784.08 = +87.39

S & P 500: 1379.19 = +12.77

The markets closed higher; NASDAQ, thanks to the strong technology rally, closed at a new record. Gainers included: 3Com, Aeroflex, Aetna, Ameritrade, AMR, Bell South, Coca Cola, Commerce One, Compaq, Dell, Disney, DLJ Direct, Genentech, Informix, InfoSpace.Com, Intel, JDS Uniphase, LSI Logic, Lucent Technologies, Metrocall, Metrix One, Micron Tech, Microsoft, Niku, Nyomed Amersham, Onvia.Com, Philip Morris, Priceline.Com, Qwest Communications, SBC Communications, Schlumberger, Seagrams, Sotheby's Holdings, Sun Microsystems, Tyco International, VasoMedical, and Xybernaut.

Technology stocks rallied today again due to upgraded earnings and price targets; the NASDAQ set its 12th. (and second in a row) record today by closing above 4784 points.
Oil futures had a very good day as April crude rose significantly to close at $31.77 per barrel; despite a proposed increase in production (hopefully) before the end of April by 1 to 2 million barrels a day, analysts feel the increase will be too little to have that much of an impact on prices.
US Construction rose a robust 2.7% in January, well above forecast.
The National Association of Purchasing Managers reported that, their PMI rose to 56.9%, about 0.9% above forecast.
Lucent Technologies is spinning off its office telephone and wiring divisions; the market seem to agree.
IPOs were hot today as Metrix One and Onvia.Com debuted.
CS First Boston upgraded Genentech.
Aetna confirmed it has received an offer worth over $10 billion from Wellpoint Health Networks and ING America, a unit of the Dutch group.
Rumors are that SBC Communications & Bell South are planning to merge their wireless systems so as to become dominant players.
Monex, DLJ Direct, and Mitsui of Japan are forming a Japanese Electronic Communications Network (ECN).
Rumors are that Qwest Communications is been eyed by Deutsche Telecom.
Rumor is Seagram is the target of a takeover.

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Metrix One, Microsoft, Neoforma.Com, Netsolve, New Tel, Niku Corp, Novell Networks, Novellus System, Onvia.Com, Optelecom, Oracle, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, Safeguard Scientifics, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10128.31 = +89.66

NASDAQ: 4696.57 = +118.72

S & P 500: 1366.41 = +18.36

The markets were hot due to economic news, industry research reports and IPOs; NASDAQ closed at a new record. Gainers included: 3Com, Acceptance Insurance, Adatom.Com, AdminiStaff, Affinity Tech, Altera, AMF Bowling, AML Communication, Applied Digital, Applied Materials, Applied Micro Circuits, Aspect Medical System, Atmel, AT&T, Avenue A, Broadcom, Charles Schwab, ChoiceTel Communications, Ciena, Cisco Systems, Citigroup, CMGI, Conexant System, DLJ Direct, Elan Corp PLC, Energy Biosystems, Eshed Robotec, E*Trade, Fairchild Semiconductor, Flamel Tech, Friedman Billings & Ramsey, GE, Gentek, Glenayre Tech, Global Crossing, Hewlett-Packard, Home Depot, HyTek Microsystems, Imaging Tech, Intel, JDS Uniphase, Kmart, Knight/Trimark, LSI Logic, Lucent Technologies, MCI Worldcomm, Merck, Micron Tech, Motorola, MSC Software, National Discount Brokers, Net.Genesis, Newbridge Networks, Niku Corp., Oracle, PAC SoftWorks, Paging Network, PMC Sierra, QuickLogic, Qwest Communications, Rambus, R&B Falcon, RF Monolithics, Safeguard Scientifics, SBC Communications, Schering-Plough, Sipex, Southwest Securities, Speeus.Com, Staples, Sun Microsystems, Texas Instruments, Vion Pharmaceuticals, Vitesse Semiconductor, Wal-Mart, Xerox, and Xilinx.

Markets reacted due to industry research reports, economic news, and IPO frenzy (see below); technology, Internets, Biotechnology, financial and retail stocks were the biggest gainers today. Almost every sector gained, as NASDAQ set a new record with its 11th. highest closing on record.
Semiconductor and Chip manufacturing stocks soared after DB Alex Brown and Salomon Smith Barney brokerage houses released their very bullish research on the sector. DB Alex Brown and Salomon Smith Barney upgraded raised the price target for: Altera, Applied Micro Circuits, Atmel, Broadcom, LSI Logic, Micron Tech, PMC Sierra, Vitesse Semiconductor, and Xilinx.
National Discount Brokers (NDB) reported that its Q3 earnings will "substantially exceed" estimates. FirstCall reported that analysts are estimating 8 cents a share increase. However, NDB is projecting between 95 cents to $1.05 per share!
Elan Pharmaceutical is getting a fast track FDA approval for its chronic pain medicine Zicontide; the drug is expected to be approved by Summer of this year.
The Conference Board reports that its Consumer Confidence Index (CCI) dropped slightly in February to 141.8, down from the record setting 144.7 in January.
IPOs were hot today (no, Palm computing hasn't debuted yet). Avenue A, Net.Genesis, and Niku Corp. were hot.
Chicago Purchasing Managers released their index (PMI) for February. The Chicago PMI grew 0.1% to 56.7% in February, due mostly to modest growth in the manufacturing sector.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Elan Corp. PLC, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, Hytek Microsystems, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Niku Corp, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, Safeguard Scientifics, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10038.65 = +176.53

NASDAQ: 4577.85 = -12.65

S & P 500: 1348.05 = +14.69

MOST ACTIVE STOCKS & SECTORS

The markets closed mixed on inflation and interest rate hike fears; the Dow gained over 176 points, while the NASDAQ lost over 12 points. Gainers included: AdminiStaff, AML Communication, AOL, Applied Digital, Applied Materials, Arch Communications, AT&T, Aviall, Bank of America, Benton Oil, Bristol Hotel, ByWay Corp., Callaway Golf, Caribiner International, Carnival Corp., Carson inc., CellTech, Centura Software, Citigroup, Columbia Energy, Convergys, Dexter, Disney, Ericsson, ExxonMobil, E*Trade, Florsheim Group, Fox Entertainment Group, GE, Gencorp, General Cable, Ha-Lo Industries, Home Depot, Imaging Tech, Isomet Corp., John H Harland, Johnson & Johnson, Keithley Instruments, Kellogg, LG&E Energy, London Pacific, Meadowbrook Insurance, Merck, MicroNetics Wireless, Micron Tech, Microsoft, Microwave Filter, NewsCorp, Nortel Networks, PAC SoftWorks, Paging Network, Philip Morris, Qualcomm, RF Industries, SBC Communications, Sears Roebuck, Sun Microsystems, Superior Telecom, Texas Instruments, Tyco International, Tyler Tech, Virtual Communication, Vlasic Foods, and Wal-Mart.

Markets reacted due to today's economic news (see below).
US Consumer Spending in January rose a stronger-than-expected 0.5%; the November and December figures, already high, have also been revised upward.
US Personal Income grew 0.7% in January, in line with estimates. However, the increased consumer spending (and declining savings) is causing concern about inflationary pressures.
Columbia Energy is to be acquired by NiSource for $6 billion in cash, and assume $2.5 billion in debt.
Carson inc. is to be acquired by a unit of L'oreal.
Bass Group PLC, the British brewing giant, is offering $157 million for Bristol Hotels & Resort; this will be for the 90% of the company Bass doesn't already own.
London Pacific Group, the Jersey, Channel Islands financial services group, reported year-end after tax profit increase of 787% to $252 million.
Yahoo is reported to be in talks with NewsCorp in an attempt to form various strategic alliances; Newscorp has been vulnerable lately, as Internet companies eye media houses.
AOL have signed deals with major wireless players like Motorola, Nokia, Research in Motion, Sprint PCS, Arch Communications, and BellSouth so as to make AOL available to customers; this is all part of the "AOL Anywhere" campaign drive to handheld devices.
Microsoft, in attempts to reach the market before AOL, have also signed with other major wireless players like Nextel Communications and Airtouch Cellular to make MSN available to its customers this April; this is part of "MSN Mobile 2.0" campaign drive to handheld devices.
Sears and France's Carrefour S.A., two major global retailers, have announced plans to set up a Business to Business online purchasing exchange, designed to link retailers and suppliers; Oracle Corp.'s enterprise software will be the software of choice.
PowerGen, a U.K. energy company, is acquiring Louisville, Kentucky based LG&E Energy for $3.2 billion in cash, and assume $2.2 billion in debts; this was the second major energy company acquisition announced today.
The IPO price target for Palm, 3Com's spin off unit & handheld device maker, has been upgraded by about 100%.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 9862.12 = -230.51

NASDAQ: 4590.50 = -27.15

S & P 500: 1333.36 = -20.07

MOST ACTIVE STOCKS & SECTORS

The NASDAQ an Dow closed lower due to inflation and interest rate hike fears. Gainers included: Adatom.Com, Alcatel, Alpine Group, Amgen, Applied Micro, Atmel Corp., AT&T, AutoDesk, Bradley Pharmaceutical, British Sky Broadcasting, British Telecom, Cable & Wireless HKT, Canwest Global, Centennial Healthcare, CheckFree, China Telecom, Collateral Therapeutics, Commerce One, Compaq, Conductus, Cotelligent Group, Crown Castle International, Cytogen, Dallas Semiconductor, DigitalThink, Disc Auto Parts, DoubleClick, Echelon Corp., Encal Energy Ltd., Ericsson, Euro909.com, Evercel, FBL Financial Group, Fleming Companies, Foundry Networks, Gap, General Datacomm, GenesisIntermedia.com, Harrah's Entertainment, Hasbro, Hotel Reservations, Independence Federal Savings, Informatica, Insight Enterprises, Intersil Holdings, JMar Tech., Kent Electronics, KPN Telecom, LCC International, Looksmart.Com, Lucent Technologies, MediTrust Corp., MicroSemi, Microwave Filter, Mirage Resorts, MSC Industries, Neff Corp., Newbridge Networks, Omni Nutraceuticals, Ophidian Pharmaceutical, Oracle, Park Place, PE Biosystem, PE Corp., Philips, Pinnacle Holdings, Prison Realty, Relliance Group, ResortQuest International, SFX Entertainment, SkyePharma PLC, SpeedUs.Com, Super Tech, Symbol Tech., Toreador Realty, Triton PCS, TRW, Tyco International, Tyson Foods, Vical, Waters Instruments, Western Wireless, WIT Capital, and Zaring National.

US Gross Domestic Products (GDP) rose a revised 6.9% in Q4 1999, the largest increase in three years. The markets reacted negatively on inflation and interest rate fears, thus forcing the Dow and NASDAQ to close lower.
US Existing homes sales dropped 4.59 million units (10.7%) in January, the lowest monthly units sold since January 1998; analysts were expecting a bigger drop of 5.05 million units.
Asian (and some European) high tech ADRs like China Telecom, Cable & Wireless HKT, Philips, KPN Telecom, British Telecom, did very well.
Oil prices moved higher to close at $29.97 a barrel, up 58 cents.
CVS Corp., has denied the rumors that it is to acquire Rite Aid's pharmacy benefits management unit; Rite Aid closed lower.
Ford's AutoXchange.com, the car parts B2B site, will now be the premier site for the big three car companies. Under the agreement, Ford will up half its stake in Oracle's Oracle Exchange for GM's half stake in Commerce One. Under the plan, Oracle's enterprise software will be the software of choice (not i2 Technologies).
SpeedUs.Com, the broadband high speed Internet company, has acquired a wireless transmission technology from GEC Partners LLP..
Vical will co-develop Novel Genes into Pharmaceutical products with Human Genome Sciences.
Evercel has set a 2-for-1 split.
DLJ brokerage house has raised its price target for Kent Electronics.
CS First Boston has raised the price target for Applied Micro and Dallas Semiconductor, while the Gap and US Internetworking were upgraded.
Goldman Sachs raised earnings estimates on Autodesk, and upgraded Checkfree and WIT Capital.
DB Alex Brown upgraded Foundry Networks and Oxford Health Plans.
WIT Soundview raised the price target for Informatica.
Piper Jaffray upgraded and raised the price target for Looksmart.Com.
AG Edwards upgraded Microsemi and Insight Enterprises.
Lehman Brothers upgraded Western Wireless, Sprint PCS, and Triton PCS.
Warburg Dillon Read upgraded Pinnacle Holdings and Crown Castle International.
IPOs like Intersil and DigitalThink did well.
Hasbro is buying back up to 17.25 million shares of its common stock.
Rumors are that, Harrah's entertainment and Park Place entertainment, both major casino holding companies, are considering a rival bid for Mirage Resorts, in hopes of derailing MGM Grand's $3.4 billion offer.
SFX Entertainment is rumored to be in talks to sell a major stake to CBS.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10092.63 = -133.10

NASDAQ: 4617.65 = +67.32

S & P 500: 1353.43 = -7.26

The NASDAQ closed above the 4600 mark, while the Dow closed lower for the second day. Gainers included: 3Com, Ace Communication, Agritope, Alcatel, All American Semiconductor, Ambi, Amgen, AOL, Ariad Pharmaceutical, Arrow Electronics, Associates First Capital, Aviation Group, Avnet, Borden Chem., BTU International, Bugen Communication, Cabletron System, Carrier 1 International, Celera Genomics, Celltech Group, Chesapeake Energy, Compaq, Compuware, Cotelligent Group, Dell, Eaton Corp., Fidelity Federal, Gateway, GE, General Datacomm, GETGO Mail.com, Global Crossing, GM "H", Hertz Tech, IBM, Imaging Technology, Go.Com, Intel, InterNAP Network Services, Intergra Life sciences, JDS Uniphase, Level 3 Communications, Lucent Technologies, MCI WorldCom, Medco Research, Microsoft, Nextel Communications, Newbridge Networks, On Command, Open Text, Precision Auto, Priceline.Com, Resmed, Ritchie Brothers Auction, Rite Aid, Salton, SGL Carbon AG, Sun Microsystems, Three Five Systems, Texas Instruments, Time-Warner, Transaction Systems Architects, Virata, Visx, Vitesse Semiconductor, and Wal-Mart.

Technology and Internets rallied as investors went bargain hunting. Apparently, the positive comments made about the AOL and Time-Warner merger are still pulling the technology and Internet sectors.
Biotechnology stocks gained on two good pieces of information today (see below).
Ariad Pharmaceutical's gene targeted drug was approved by the FDA.
A Delaware court has cleared the way for Medco Research to acquire King Pharmaceutical.
Rumors are that, CVS Corp., the US's largest drugstore chain, is nearing a deal to acquire Rite Aid's pharmacy benefits management unit for about One billion Dollars, $400 million less than what ailing Rite Aid paid for.
Silver Lake Partners, an investment company, is investing $200 million into Cabletron Systems; Cabletron is scheduled to be split into Four distinct units.
Carrier 1 International, a Swiss telecommunication equipment maker, had a stellar IPO debut.
Eaton Corp. is planning to spin off its semiconductor unit so as to take advantage of the spectacular performance in the sector; Semiconductor related stocks did very well today.
Gateway computers was upgraded by Bear Stearns.
Arrow Electronics was upgraded by DLJ and another major brokerage house. Both also raised Arrow's stock price target.
PaineWebber increased its its price target on JDS Uniphase.
Texas Instruments was upgraded by CS First Boston.
Go.Com, a unit of Disney, saw its unique visitors increase by 60% in December and January.
AFTER CLOSE: Intuit, the financial software maker, reported earnings of 44 cents per share, in line with estimates; Intuit shares were losing in after hours trading.
VA Linux posted fiscal Q2 losses of 36 cents a share, losses greater than anticipated.
Crude Oil prices climbed to $30.01 per barrel due to a bullish weekly inventory data (see below).
API reports that, for week ending February 18th., gasoline inventories fell 432,000 barrels, while the EIA reported a drop of 2 million barrels in the same period, this was higher-than-anticipated.
US Durable goods fell 1.3% in January, a smaller drop than anticipated.
Jobless claims for week ending February 19th. was 278,000 - a smaller drop than anticipated, and a signal that wage pressure on inflation hasn't eased.

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10225.73 = -79.11

NASDAQ: 4550.33 = +168.21

S & P 500: 1360.69 = +8.52

The NASDAQ rebounded with a record gain, while the Dow closed lower. Gainers included: 3Com, Amgen, AOL, AT&T, Aviation Group, Bank of America, BEA Systems, CANTV, Cardiac Pathways, ChemDex Corp., Cisco Systems, Conductus, Dell, Disney, DoubleClick, EA Engineering, E*Trade, Home Depot, Gateway, GE, Gilat Satellite Ltd., Ha-Lo Industries, Houston Industries, ICIC Ltd., ILife.com, Imaging Technology, Incyte Pharmaceutical, Intel, JDS Uniphase, London Pacific, Lucent Technologies, Medco Research, Microsoft, Mirage Resorts, Mitel Corp., MSC Software, National Discount Brokers (NDB), Nextel Partners, Nortel Networks, PairGain Technology, Pfizer, Qualcomm, Regeneron Pharmaceuticals, Rite Aid, Salton, Smith & Nephew, Sprint PCS, Sotheby's Holdings, Sun Microsystems, Super Tech., Thomson Multimedia, Three Five Systems, Time-Warner, Tribune, Yahoo! and Zmax Corp.

Two leading Internet analysts at Merrill Lynch brokerage house reiterated their strong recommendations for AOL stocks, despite the Time-Warner merger. This positive news cascaded over the whole Internet and Technology sectors, thus pushing the NASDAQ to gain over 168 points, the highest one-day point gains ever.
Federal Reserve chair, Alan Greenspan said that the Central Bank is not "..focusing monetary policy on the stock market". He further explained "...we don't look at stock prices and say, 'they are rising, we have to raise interest rates'"; analysts were upbeat enough about these comments to keep inflation fears aside for some bargain hunting. Visit our Federal Reserve Monetary Policy Alert page for our analysis of the coming FOMC meeting in march.
The Dollar rose against the Yen.
MGM Grand, the large Las Vegas gaming company, is making a "friendly" offer for Mirage Resorts in the tune of $3.3 billion.
Gateway computers announced that it will increase its product line and hope to have an annual sales of over $30 billion by 2004. Gateway also announced a deal with Sun Microsystems (customer & software cooperation), and with OfficeMax (Gateway country stores will now be opened inside OfficeMax outlets).
ADC Telecom is paying $1.6 billion to acquire Pairgain Technology, in hopes of expanding its DSL Broadband reach.
BEA Systems reported earnings of 33 cents per share, beating estimates by 7 cents a share. BEA also scheduled a 2-for-1 stock split; Two major brokerage houses raised their price target for the stock.
Zmax Corporation's unit signed an agreement with BEA Systems to be its systems intergrators.
ILife.com, the personal finance web network, has signed a content agreement with Yahoo! Ilife's IntelligentTaxes.Com site will be featured on Yahoo's finance tax center.
EchoStar Communications is to co-develop interactive set-top boxes with OpenTV; EchoStar is also going to provide high speed internet service in partnership with Gilat Satellite Networks.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10304.84 = +85.32

NASDAQ: 4382.12 = -29.62

S & P 500: 1352.17 = +6.08

The Blue Chips pushed the Dow to close higher, while the NASDAQ closed lower. Gainers included: 3Com, ABN AMRO Holding, Acclaim Entertainment, Advanced Deposit Technology, Ann Taylor Stores, Applied Materials, Ascent Entertainment, Banca Quadrum S.A., Bank of America, Bank One, BF Goodrich, British Telecommunications, Caribiner International, Citigroup, Consolidated Papers, C-Port, Daw Technologies, Diageo PLC, Dycom Industries, Dynatec International, Electric Fuel, Endesa S.A., Entrade.Com, ExxonMobil, Fletcher Challenge Paper, Henly Healthcare, Home Depot, GE, Global Crossings, ICIC Ltd., Information Holdings, Intel, IXNet, Ixos Software AG, JDS Uniphase, KLA-Tencore, The Limited, Lucent Technologies, MCI Worldcom, Merck, Metro Goldwyn, Motorola, Nanometrics, National Semiconductor, Nexell Therapeutic, Nextel Communications, Northstar Computer Forms, Notify Technology, Omi Corp., Oracle, Patient Infosystems, Pharmos, Pharmaprint, Philip Morris, Price Communications, Rambus, Rock of Ages, Schering-Plough, Sensormatic, Snyder Communication, Sterling Commerce, Sulzer Medica Ltd., Techniclon, Teradyne, Theragenics, Texas Instruments, Titan International, Too inc., Travel Services International, VasoMedical, Veba AG, Videonics, Vodafone Airtouch PLC, Walmart, and Wayne Savings Bancshares.

Interest rate fears caused investors to rushed to blue chip stocks, due mostly to stock buy-backs, causing the Dow to gain over 85 points. Technology and Internet stocks lost, thus pushing the NASDAQ down to lose over 29 points.
William McDonough, President of the Federal Reserve Bank of New York, an influential voting member of the FOMC stated that "its very clear that we will have to use the interest rate tool as long as the demand side of the economy stays this robust" - that speaks for itself. Visit our Federal Reserve Monetary Policy Alert page for our analysis of the coming FOMC meeting in march.
European ADRs like British Telecomm had a good day.
Semiconductor & Chip manufacturing related companies like Rambus, Teradyne, KLA - Tencore, National Semiconductor, Motorola, and Texas Instruments did very well.
Stora Enso, a Finnish-Swedish paper company, will pay $4.84 billion to acquire Consolidated Papers of Wisconsin. This launches Stora Enso into the US market as a major player, and the global leader; this is the second paper companies merger within a week, and the third in the last month.
The Limited, the major clothing retailer, reported Q4 earnings of $2.31 per share, a 35% increase and beating estimates by 20 cents a share.
Texas Instruments introduced two advanced mobile phones Digital Single Processors (DSP) semiconductor chips; this will increase Texas Instrument's already dominant position in DSP chips.
SBC Communications, a major telecommunications company, is getting into the Business to Business e-commerce by paying $3.9 billion for Sterling Commerce.
Global Crossings is paying $3.8 billion for IXNet, an Internet networking company.
Nextel Communications reported a less-than-anticipated Q4 earnings of $1.04 per share, and set a 2-for-1 stock split; Alex Brown brokerage house raised its target price for Nextel - the stock soared over 10%.
Merck & Company's board has approved a $10 billion stock buy-back plan.
BF Goodrich board has approved a $300 million stock buy-back.
Motorola is paying $430 million for C-Port, a network processors maker.
National Semiconductor is teaming up with Hewlett-Packard to deploy a copper wiring for Ethernet networking up to a gigabit.

PICKS FOR THE NEXT MARKET DAY

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Price Communications, Provident Bank, Prudential, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

DOW INDUSTRIAL: 10219.52 = -295.05

NASDAQ: 4411.74 = -137.18

S & P 500: 1346.09 = -42.17

The markets took a tumble before the long weekend. Gainers included: 5B Technologies, Accumed International, AirNet Systems, AutoImmune, Barclays PLC, Becton Dickinson & Co., Bellwether Exploration, Bingham Financial Services, Biolase Technology, Caribiner International, China Eastern Airlines, China Southern Airlines, Communication Intelligence, Creative Biomolecules, Cummins Engines, Cytogen, DoubleClick, Gap, GETGO Mail.com, Gigamedia, Groupe AB, Hewlett-Packard, Inacom, Infinite Group, Inforte, Intelect Communication, International Fibercom, Interneuron, McDermott International, Netter Digital, Nexell Therapeutic, Nycomed Amersham PLC, Paging Network, Philip Morris, Qualcomm, Quidel, Ribozyme Pharmaceutical, Sawtek, Solutia, Somnus Medical Technology, St Laurent Paper, Symix Systems, Techniclon, Tektronix, Too inc., Ultradata System, Xenova Group, and Young & Rubican.

The markets were reacting late to Federal Reserve Chair Alan Greenspan's speech. the losses were broad in a heavy market volume. Visit our Federal Reserve Monetary Policy Alert page for a complete analysis of Mr. Greenspan's speech.
Too inc., the women's clothing retailer, reported Q4 earnings of 55 cents per share, beating estimates by 5 cents a share.
Montreal, Canada based St. Laurent Paperboard inc. reported it is in merger talks.
Young & Rubican was upgraded by Merrill Lynch.
China's largest airline, China Southern Airlines, has launched a web site that will handle its ticketing and reservations for both domestic and international flights.
The US Consumer Price Index (CPI) rose a lower-than-anticipated 0.2% in January.
US Trade deficit narrowed to a lower-than-forecasted $25.5 billion in December. US Trade deficit in all of 1999 was a record $271.3 billion.
The US Treasury had a surplus of $62.2 billion in January.
The US Dollar rallied to a five month high, and gained above the Japanese Yen and the Euro due to the strong economic news.
IPOs like Gigamedia and Forte corp. were hot, despite a depressed market.
Federal Reserve Board Governor Edward Kelley told an audience that, the Central Bank will raise interest rates in small increments and step by step so as to slow the economy without panicking the markets.
Mexico, Saudi Arabia, and Venezuela have indicated their willingness to raise oil output in April so as to maintain prices in the $20-$25/barrel band; oil futures closed today higher at $29.51/barrel, a 5 cents gain.
Soybean prices surged today on a speculation that China bought One million metric tons of US Soybeans.
Hewlett-Packard has filed to sell $3 billion debt instruments, common & preferred stocks, depository shares & warrants. The raised capital will be used for general corporate purposes.

NASDAQ:

Technology, Biotechnology, Telecommunications, and some Internets will gain. Companies like: Act Networks, Advanced Electronic Support Products (AESP), Akamai Technology, Alamosa PCS, AlpNet, Alysis Technology, Amgen, Andover.Net, Apple, Applied Materials, Ariba, Ariad Pharmaceuticals, Ariel Corporation, Ask Jeeves, Avanex Corp., Be Incorporated, Cavion Technology, Cellular Technical, Centra Software, Centura Software, Charter Communications, Chordiant Software, Cisco Systems, CMGI, Cobalt Networks, Commonwealth Biotechnologies, Corel, Covad Communications, Cygnus, Cytogen Pharmaceutical, Dell, ebay, Ecogen, Emerge Interactive, Epicor Software, E-piphany, ePlus, Ericsson, EuroWeb, Excite@Home, Evolving Systems, Finisar, Foundry Networks, FreeMarkets.Com, GeoWorks, Glenayre Technologies, GRIC Communications, iBasis, Impsat Corp., Informix, Infosys Technologies, Inktomi, Intel, Internet Capital Group, Intuit, JDS Uniphase, Juniper Networks, Legato Systems, Looksmart, MCI Worldcom, Microsoft, Neoforma.Com, Netsolve, New Tel, Novell Networks, Novellus System, Oracle, Optelecom, Pac-West Telecomm, Paging Network, Panja, PFS Web, Portal Software, Qualcomm, Quantum Effect Devices, Red Hat, Robocom, Saflink, Sage, Sanchez Computer Associates, SDL inc., Sequenom, ShopNow.Com, Silicom Ltd., Siliconix, Smith Micro Software, SonicWall, Sun Microsystems, Sybase, Sycamore Networks, Synaptic Pharmaceuticals, Targ Genetics, TCSI, Tegal Corp., Telular Corp., Terra Networks, Trega Biosciences, TriTel, Turnstone System, Va Linux, Venture Catalyst, Vertel Corp., ViaNet.Works, Vitesse Semiconductor, V One Corp., WebMethods, Witness System, Yahoo! and Zebra Technologies.

NYSE:

Telecommunications, Retailing, Utilities, Banking, and Technology stocks like: 3Com, Aetna, Agilent Technology, Alcatel, AMD, AOL, American Express, Analog Devices, AT&T, Bank of America, Bank One, Bausch & Lomb, Bell Atlantic, BP Amoco, British Telecom (BT), Cable & Wireless, Celestica, Charles Schwab, Chase, Check Point, Chevron, Cigna, Citigroup, Compaq, Computer Associates, Convergys, Dominion Resources, Donaldson Lufkin, Dow Chemical, Dot Hill Systems, E.I. Dupont, El Paso Energy, EMC Corp., Exxon Mobil, Federated Dept. Stores, Fifth Third Bank, FirstStar Bank, GE, GTE, Hewlett Packard, Home Depot, IBM, JC Penny, John Hancock, Johnson & Johnson, JP Morgan, Kmart, Legg Mason, Lucent Technologies (LU), Merck & co., Merrill Lynch, Micron Technology, Morgan Stanley Dean Witter, Motorola, National Semiconductor, Newbridge Network, Nortel Networks, PE Corp, Pfizer, P&G, Philip Morris, Provident Bank, Prudential, SBC Communications, Schering-Plough, Schlumberger, Sprint, Sprint PCS, STMicroelectron, Texas Instruments, Tyco International, Unisys, Wal-Mart, Warner Lambert, Wells Fargo, Xerox, and ZDNet will do well.

THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market

THE "DAILY BREAD" FOR THE MARKET

Daily Morning Insights on the Market