Last week, as investors reminisced over the anniversary of the Nasdaq's
all-time intraday high of 5,132 four year's ago, the present average showed
the Nasdaq struggling to maintain a level of 2,000. "There's a psychological
value with (the Nasdaq) dipping below the 2,000 mark, causing traders to feel
uncomfortable," said Fred Dickson, market strategist at D.A. Davidson, to
Reuters News. Also sinking stocks was the resurgence of terrorism concerns, as
a series of bomb blasts in Madrid killed over 190 people and injured over
1,400. Further fueling concern in the United States was the bombings' possible
link to al Qaeda. Nicole Elliott, senior strategist at Mizuho Corporate Bank,
commented to Reuters News, "Everyone wants to know if it was al Qaeda . . .
But whether it is al Qaeda or not, this has brought back to the front of our
minds that terrorism does not go away. It is a continuous event."
Semiconductor issues were unduly hit, even after Texas Instruments issued a
rosy first-quarter earnings and revenue forecast. Intel also weighed on the
group, after technology research firm IDC forecast modest growth rates in chip
sales through 2008. Still, the Nasdaq bounced back at the week's end. Oracle
posted a stronger quarterly profit and sees a modest improvement in tech
spending. Elsewhere, Dell received some upgrades from J.P. Morgan and Morgan
Stanley. Some market watchers continue to be optimistic and view the tech
industry's recent downturn as a blip that will eventually correct itself upon
the arrival of healthy corporate reports. "There's a little more work to go,
but over the next month or so as we approach earnings season I think we'll see
a Nasdaq rally," commented Jon Brorson, managing director of growth equities
at Neuberger Berman, in a Reuters News piece.
High-Tech Monday Update is provided courtesy of Thomson Financial. This
information is believed to be true and accurate; we take no responsibility for
inaccurate information and reserve the right to update our reports. For more
information, please visit our web site at http://www.thomson.com/financial.
SOURCE Thomson Financial Corporate Group
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