Dow Dithers, Techs TankAired March 13, 2000 - 1:01 p.m. ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU WATERS, CNN ANCHOR: That sinking feeling returned to Wall Street today, this time with tech stocks proving they can't drop just -- they can drop just as quickly as they go up. The Dow Jones industrials fell 190 points in the first few minutes of trading. But the dot.com-driven Nasdaq fell even more: 209 points early this morning, or four percent. Since then, both have bounced back.
As you can see now, the Dow Jones industrial averages are up, almost 60 points. The Nasdaq is still down some 25 points or so.
CNN's Myron Kandel is watching this closely. He's at our financial desk in New York.
And tell us what it all means -- Mike.
MYRON KANDEL, CNN CORRESPONDENT: Well, Lou, a really incredible turnaround today in the market, although, as you indicated, the Nasdaq is still down -- was down more than 200 points earlier. And the Dow, which was down 190 points earlier, is now solidly in the plus column and climbing even as we speak.
What happened is there was bad news out of Japan this morning. The Japanese economy, it turns out, had a second-consecutive losing figure for economic growth; it was minus. Two losing quarters means a recession, so the Japanese economy, technically, in a recession. And that threw Japanese stocks down sharply, as well as other stocks in the Far East. That translated into European stocks falling.
Now, when trading began in New York, there was a lot of panic selling; can't describe it as anything but that, panic selling that sent the markets down, those nearly 200 points on each average, as I mentioned earlier.
But, now, the market has turned around. After all, the Dow was down last week as a whole; the Nasdaq was up solidly for the second week in a row; topped 5000 for the first time ever. So the Nasdaq still giving back some of last week's gain, and the Dow is a solid winner.
That shows that there is still strength in the economy. The technicals -- the technological stocks have not fallen out of bed, as some people feared earlier today. Any rate, there are a lot of people breathing easier on Wall Street right now than they were just a couple of hours ago -- Lou. WATERS: All right, panic doesn't last long on Wall Street these days. Myron Kandel in New York.
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