StockWatch: Nasdaq Trims LossesAired January 5, 2000 - 2:31 p.m. ET
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LOU WATERS, CNN ANCHOR: It's another one of those more than interesting days up on Wall Street. Financial editor Myron Kandel joins us to tell us what is going on up there -- Mike.
MYRON KANDEL, CNN CORRESPONDENT: Well, Lou, we are going to focus on the market that's been going down. For the second day in a row, the Nasdaq composite fell sharply. But that index loaded with technology stocks has trimmed its loss significantly this afternoon. Right now, the Nasdaq is down only 10 points. It was down 166 points earlier.
The reasons for that selling, much the same they were yesterday when the Nasdaq plunged a record 229 points. Investors taking profits off the table after the big run-up last year, tax considerations, and worries about rising interest rates.
But it's be a much different story for the Dow all day today. Right now, the Dow is up 189 points at 11187. Where do we go from here? Nobody knows, but analysts say, this much is certain: more volatility lies ahead. It's been a roller coaster day -- Lou.
WATERS: There was a point, Mike, when the Dow was up as much as the Nasdaq was down. Any particular significance why there is this disparity in the markets.
KANDEL: Boy I have never seen -- you are right about that. The Dow was up more than 100 points, the Nasdaq was down more than 100, never seen that. But, you know, the Nasdaq had that huge rise last year, 85 percent, so when it came down, it came down with a thud, but now it's coming back, investors like that a lot better.
WATERS: Heard analyst after analyst after analyst yesterday on "STREET SWEEP" say that this slide was going to continue at least through the end of the week, probably beyond that. It looks the Nasdaq is trying to claw its way back right now.
KANDEL: Well, the Dow has done it, and the Nasdaq is -- you are right after that. The facts is, a lot of new money comes into the market about now, the next few days and the beginning of next week, from 401(k)s and IRAs, and other pension plans, and that is giving the market a bit of support, and it may very well do so in the days ahead.
WATERS: What about the bond market, anything spilling over into that? KANDEL: The bond market is down today. Some of the money that obviously went into bonds yesterday, when stocks began to tumble, have now gone back out of bonds into stocks. The bond market, you know, was a terrible disaster last year. People are expecting the Fed to raise interest rates again when it meets early next month, and so the bond market remains under pressure -- Lou.
WATERS: So "volatile" is the world of the day. Thanks, Mike. Myron Kandel, from New York, we'll be hearing from you a little bit later on.
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