Friday, December 12, 2003
Market Summary
Despite encouraging data, analysts are pre-occupied
In short, US markets ended the week mixed. Contrary to the lessons learned from the market fallout of 2000, the tech fetish has apparently not gone away as analyst's preoccupation with technology stocks overshadowed any optimism from two leading economic indicators. Though Friday's economic reports suggested continued strength in both the consumer and housing sector, trading ended the week on a somber note as the tech-heavy Nasdaq composite index ended down 37.78 points, or 1.94%, to 1,912.36 while the Dow Jones industrial average lost 69.93 points, or 0.71%, to 9,721.79.
Intel's ability to exceed expectations while tickling the feet of analysts (while still managing to trade at 40 times earnings) was not enough to turn around the tech sector. For the week, the Nasdaq was off 0.15 percent after two straight weeks of gains. While Nasdaq darlings EBAY and DoubleClick disappointed investors with dismal 2004 forecasts, Sun Micro Systems compounded woes with wider loses as sales fell for the 10th consecutive quarter. Offsetting these disappointments, the Dow for the week rose 0.49 percent and the S&P 500 added 0.12 percent, notching the third straight week of gains.
Despite encouraging data, analysts are pre-occupied
In short, US markets ended the week mixed. Contrary to the lessons learned from the market fallout of 2000, the tech fetish has apparently not gone away as analyst's preoccupation with technology stocks overshadowed any optimism from two leading economic indicators. Though Friday's economic reports suggested continued strength in both the consumer and housing sector, trading ended the week on a somber note as the tech-heavy Nasdaq composite index ended down 37.78 points, or 1.94%, to 1,912.36 while the Dow Jones industrial average lost 69.93 points, or 0.71%, to 9,721.79.
Intel's ability to exceed expectations while tickling the feet of analysts (while still managing to trade at 40 times earnings) was not enough to turn around the tech sector. For the week, the Nasdaq was off 0.15 percent after two straight weeks of gains. While Nasdaq darlings EBAY and DoubleClick disappointed investors with dismal 2004 forecasts, Sun Micro Systems compounded woes with wider loses as sales fell for the 10th consecutive quarter. Offsetting these disappointments, the Dow for the week rose 0.49 percent and the S&P 500 added 0.12 percent, notching the third straight week of gains.
# posted by DH @ 4:18 PM 
