Oh, to hell with the president. Let's buy stocks.
After five days of declines, Wall Street was cautiously heading north again in mid-afternoon trading Tuesday, as investors overcame their apprehension about Bill Clinton's political demise and seized the opportunity to snatch up a few bargains. Internet stocks, of course, were at the top of everyone's shopping list.
The Wired Index was up 7.22 points at 459.80, and the Dow Jones Industrial Average was 32.70 higher at 8728.30. The Nasdaq Composite Index gained 30.23 to 1997.15, and the S&P 500 was up 9.16 at 1150.36.
Although Caterpillar (CAT) rattled investors' nerves at the outset with a warning that its fourth-quarter earnings will be way short of expectations, General Electric (GE) balanced things out with assurances that it still expects to come through with anticipated 1999 profit of US$3.19 a diluted share, up 14 percent from its estimated 1998 earnings of $2.80.
Another positive sign came from the Labor Department, which reported that the consumer price index rose 0.2 percent in November, fully in line with economists' predictions. In other words, inflation remains well under control.
Internet stocks led the charge back into positive territory. America Online (AOL) advanced $3 to $92.25 on word that it has formed a joint venture with Cisneros Group, a South American media conglomerate, to develop Net services for the region. Brazil, Mexico, and Argentina will be the first markets targeted by the venture.
Infoseek (SEEK) jumped $5, or 12 percent, to $46.19 after Merrill Lynch upgraded the company's shares to near-term "accumulate" from "neutral." Analyst Jonathan Cohen took a look at the Go Network, Infoseek's newly unveiled online partnership with Disney, and liked what he saw. He said the portal "could represent a legitimate rival to larger search and navigation companies."
Not that those companies appear fazed by the new kid on the block. Yahoo (YHOO) rose $3.81 to $195.06, and Excite (XCIT) was $1.69 higher at $50.75. Meanwhile, Amazon.com (AMZN) gained $7.75 to $230, and Network Solutions (NSOL) climbed $7.38 to $114.38 after inking a pact with Yahoo to extend the reach of its domain-name registration service.
In tech, Sun Microsystems (SUNW) advanced $3.06 to $79.31 as it announced a tie-up with Japan's Matsushita Electric Industrial, maker of National and Panasonic goodies, to develop Java-based software for digital appliances. The idea is to network all the gadgets in a wired home so that, in essence, your PC can make coffee.
Nokia (NOK/A), the world's largest cell-phone maker, rose $3.75 to $110.375 after winning a $140 million order from Finland's Sonera Oyj.
Investors gave a mixed reception to reports that MCI WorldCom (WCOM) is in talks with Electronic Data Systems (EDS) to form a joint venture providing voice and data services to global business customers. If, as reported, MCI were to cede management of its internal billing and information systems to EDS, a number of layoffs could be possible. MCI fell 81 cents to $61.38, while EDS was up $1.38 at $44.50.
And Kellogg (K) gained 19 cents to $35.69 after hiking its cereal prices by an average 2.7 percent to cover increased marketing costs. Bite-Size Frosted Mini Wheats are now 11 percent more expensive, while Low-Fat Granola is 11 percent cheaper.
Undoubtedly that means something.
