NASDAQ sets new record; Dow holds onto gains
Both the Dow Jones Industrial Average and NASDAQ composite finished the week on a positive note, partly due to news that employment and wage growth was slower than expected in September.
The Dow slid after a strong start this morning, but it still closed up 11.05 points on the day at 8038.58. The NASDAQ was up 13.42 points to finish at 1715.87, an all-time record.
As investors continue to disregard inflation as a threat, the bullish mentality that pushed the NASDAQ above the 1700 mark earlier this week should continue.
Much of this week's excitement revolved around acquisition-happy WorldCom, which made a $34.5 billion bid for telecommunications giant MCI Corp. on Wednesday. On Friday, WorldCom gained 19 cents per share to $38.0, while MCI slid back 50 cents per share to $36.13. WorldCom was the most heavily traded NASDAQ issue Friday, with more than 29 million shares changing hands.
Networking stocks had a mixed day with Cisco Systems Inc. picking up $2.44 per share to $78.50, 3Com Corp. rose 31 cents per share to $50.94. Ascend Communications lost 44 cents per share to $32.56 and Bay Networks Inc. fell 25 cents per share to $39.63.
By far the most interesting stock of the day was FileNet Corp. a maker of document management software that gained $6.75 per share, or 40 percent, to $23 after Morgan Stanley upgraded its rating from "neutral" to "strong buy."
High-speed Internet access company @Home rose $4.13 per share to $26.50 after announcing an affiliate relationship with Cablevision. Cablevision's stock also benefited, jumping $4.25 per share to $68.19.
Varian Associates Inc. closed up $1.50 per share to $63.94 after PaineWebber upgraded the stock from an "attractive" rating to "buy."