Saddam Hussein denounced the "Great Satan" as bombs rained down around him, President Clinton was branded a liar during impeachment debate, and stocks rose Friday.
At least investors have their priorities straight. War? Political crisis? But just look at those rosy projections for tech and Internet companies.
The Wired Index rose 13.10 points to close at a record 500.16, and the Dow Jones Industrial Average was 27.81 higher at 8903.63. The Nasdaq Composite Index gained 41.78 to an all-time high of 2085.66, and the S&P 500 was up 7.99 at 1187.97.
Net stocks took off like a cruise missile as Forrester Research predicted that total online business transactions in the United States will increase from US$43 billion this year to a whopping $1.3 trillion by 2003.
"That's about 10 percent of the economy transacting over the Internet," noted Richard Park, an analyst with Merrill Lynch. "That's huge."
He said the sky-high forecast is justified by the fact that online business-to-business commerce is now growing at a faster clip than online retail trade. "In online retailing, you're trying to bring people into your site," Park observed. "With businesses, once they start accepting orders over the Net, other businesses have to do the same or they're out of business."
Not that e-tailing isn't seeing a few milestones of its own. Take, for instance, the arrival of a new online shopping service called Millionaire.com (MLRE), offering big-ticket toys like luxury yachts and premium cigars to folk with more stock options than they know what to do with. The company's shares jumped $4.75, or 86 percent, to $10.25.
Real-world retailer CD Warehouse (CDWI) advanced $1 to $ 19.38 after opening an online outlet. Not to be outdone, Amazon.com (AMZN) rose $9.25 to $286, and eBay (EBAY) was up $14.69 at $253.
Onsale (ONSL) vaulted $4.25, or 11 percent, to $43.625 as Axxel Institutional Equity Services began coverage of the Internet retailer with a "strong buy" rating. And, just for good measure, America Online (AOL) climbed $5.38 to a record $104.50.
In tech, Intel (INTC) led a rally in computer-related shares after Morgan Stanley Dean Witter and Prudential Securities each boosted their earnings outlook for the company. Strong demand and low inventories are expected to result in higher-than-expected sales for the chipmeister, which rose $3.06 to a record $119.94.
Accordingly, Dell Computer (DELL) gained $1.94 to $67.75, and Compaq Computer (CPQ) was $2.63 higher at $42.69. International Business Machines (IBM) climbed $5.44 to $171.50, and Applied Materials (AMAT) was up $4.38 at $45.50.
Cisco Systems (CSCO) advanced $5.56 to a record $90.44 as SG Cowen Securities raised its rating for the company's stock to "strong buy" from "buy." Analyst Christopher Stix hiked his estimated earnings per share for next year to $1.86 from $1.77.
Globalstar Telecommunications (GSTRF) surged $1.63, or 9.6 percent, to $18.56 as Salomon Smith Barney upgraded the company's stock to "buy" from "neutral." The space-based telephony provider has rebounded from a rocket mishap several months back that resulted in a bunch of its satellites going up in flames.
Nokia (NOK/A) rose $1.50 to $117 as it agreed to purchase Canada's Vienna Systems for about $90 million in ready cash. The leading mobile-phone maker will use Vienna's network technology to bolster its position as a provider of voice and date transmissions.
Investors were less sure of Lucent Technologies (LU) after it sold off its computer telephony unit to Brooktrout Technology (BRKT) for $29.4 million. Lucent slipped 56 cents to $98.19, while Brooktrout advanced 56 cents to $14.56.
FDX (FDX) seems to have finally come to terms with its FedEx pilots, who have been pressing for higher wages and improved benefits. A new labor agreement soon will be presented to the pilots' union for ratification. FDX gained $6.63 to $82.94.
Lastly, Nike (NKE) just beat analysts' estimates with quarterly profit of 24 cents a share. But the sneaker maker's stock slid $1.75 to $39.75 as traders pondered future sales in the US and Asia, especially with all those pro basketball players skipping work and staying home to check out Millionaire.com.
