Forum Archive Index - April 2000

[Derek <dariusz@ihug.co.nz>]

Stocks
zipped all over the board Friday, ending the session with a broad rally
as money
managers readied their portfolios on the last day of the quarter.

Technology and non-technology sectors alike gained ground following three days
of intense selling in the tech-heavy Nasdaq Composite Index.  The major indexes
opened higher Friday, then swooned late in the morning before an afternoon rally
pushed the Nasdaq up 114.94, or 2.6%, to 4572.83.  The broad S&P 500 also
benefited, edging up 10.66, or 0.7%, to 1498.58, but the Dow Jones Industrial
Average drooped 58.33, or 0.5%, to 10921.92

The wild week had a lot to do with the end of the fiscal quarter, according to
Bruce Bittles, chief market strategist for J.C. Bradford & Co.  The end of the
quarter is a time when many professional money managers adjust their positions
to make things look as good as possible for their shareholders.

"It's just shifting around portfolios, end-of-quarter manipulation," Bittles
said Friday afternoon.  "Individuals were on the back of that because a lot of
them were on margin and they were scared on the way down.  That left a vacuum,
so I'd look for a rally."

It was fitting that March, one of the most volatile stock trading months in
memory, should end with a day of wild swings.  The Nasdaq opened the month by
closing at 4732.82, then lurched between a high of 5132.52 on March 10 and a low
of 4355.69 on Thursday.

The Internet sector was as active as any this week, as three companies in the
business of e-commerce and services suffered the disgrace of having their
auditors include "going concern" statements along with the companies' financial
reports.  The already depressed stocks of music retailer CDnow (CDNW), grocery
seller Peapod (PPOD), and health information provider drkoop.com (KOOP) edged
even lower after the statements, which are a warning that the companies may not
have enough cash to meet operating needs down the road.

The companies are all trading under $4 a share, well off their highs near the
beginning of the year, and investors on their message boards weren't terribly
surprised by the announcements.

"All I can say, ever since the CEO came on CNBC last year, and confirmed that
they are not going to make a profit, and will not see ANY in the forseeable
future, the stock has taken a nose dive!  IMHO $3 1/2 looks like a great exit
point right now," wrote KindaGuessin on the KOOP board.