Stocks end ghoulish week on up note
Wall Street ended its most chaotic week in recent history on a positive note Friday, as the Dow gained 60.41 points to 7442.08 while the NASDAQ surged up 23.18 points to 1593.49.
After starting the week with a 554-point collapse, the Dow rallied in the face of slumping international markets to recover 337 points on Tuesday.
Jay Vleeschhouwer, an analyst at Josephthal Lyon & Ross, summed up most analysts' feelings Friday afternoon.
"I'm just glad that it's over," he said. "It's been a little volatile, to say the least. As an analyst, all you can do is try to remain calm and keep a close eye on the companies you believe in."
Friday's upswing came mainly on the back of technology stocks. After a roller coaster week, most technology issues recovered at least 50 percent of the value lost in Monday's meltdown.
Texas Instruments Inc. closed up $4.13 per share to $107 while IBM picked up $1.69 per share to $97.50. Micron Technology Inc. and National Semiconductor Corp. posted gains of $1.50 per share and $1.25 per share, respectively.
Intel Corp., something of a whipping boy in the week's frenzy, ended up $1 per share to $76.75. Microsoft Corp. shares rose $1.31 to $129.94 while Oracle Corp. soared $2.06 per share to $35.81.
Investors also got a spot of good news from reports that the U.S. gross domestic product grew 3.5 percent for the third quarter, in line with expectations.
PC makers recovered some of the ground lost early in the week when Dell Computer Corp. picked up $2.75 per share to $80.75 and Compaq Computer Corp. rose $2.50 per share to $63.75. Hewlett-Packard gained 88 cents per share to $61.56 while Silicon Graphics Inc. shares rose 44 cents to $14.69 -- a day after the company announced plans to lay off 1,000 employees.
Networking and telecommunications stocks made strides Friday as Cisco Systems Inc. added $1.91 per share to $81.84 and 3Com Corp. nudged up $1 per share to $41.25. Bay Networks Inc. and Ascend Communications Inc. shares rose 63 cents and 69 cents, respectively.
Most analysts on Friday said they expect choppy trading in the coming weeks as the market redefines itself in the wake of sagging international exchanges and this week's heavy trading.
Next week's American Electronics Association conference in San Diego will feature more than 400 technology firms giving their best pitches to a veritable Who's Who of the investment community.
"That's always a big one, and more so after this week," Vleeschhouwer said. "Over the course of those four days, analysts will get a better idea of what to expect as we head toward the end of the year."