Nasdaq Records Third-Largest Daily Gain in Its History, Dow Bounces Back

Strategic Insights -

The Nasdaq Composite Index reached a new high on Wednesday, closing at 3,418.60, up 247.04 or 7.8 percent, following upbeat earnings reports from Microsoft Corp., Sun Microsystems, and America Online. The Dow industrials also rebounded, closing at 10,142.98, up 167.96 or 1.7 percent. The tech-led market surge was driven by strong sales of Windows, double-digit growth in subscribers and advertising for AOL, and impressive quarterly results from Sun, which posted 60 percent growth in sales and earnings of 30 cents per share.

Key Takeaways:

  • The Nasdaq Composite Index closed at 3,418.60, up 247.04 or 7.8 percent, marking its third-largest daily gain in history.
  • The Dow industrials bounced back, closing at 10,142.98, up 167.96 or 1.7 percent.
  • Microsoft Corp. shares closed at $61.88, up $10.12 or 19.5 percent.
  • Sun Microsystems reported 60 percent growth in sales and earnings of 30 cents per share, exceeding Wall Street expectations.
  • America Online's income nearly doubled the year-ago quarter due to strong sales and growth in subscribers and advertising.
  • AG Edwards upgraded AOL from "maintain position" to "buy" in its late-day update.
  • Merrill Lynch analyst Tom Kraemer attributed Sun's dip in gross margin to its "heroic growth and share gain".
  • The Dow fell below the 10,000 mark on Wednesday but rebounded to close at 9975.02, down 114.69 or 1.1 percent.

Statistics:

  • Nasdaq Composite Index closed at 3,418.60, up 247.04 or 7.8 percent.
  • Dow industrials closed at 10,142.98, up 167.96 or 1.7 percent.
  • Microsoft shares closed at $61.88, up $10.12 or 19.5 percent.
  • Sun Microsystems sales growth: 60 percent over the year-ago period.
  • Sun Microsystems earnings: 30 cents per share, 85 percent over the year-ago quarter.
  • America Online's income: nearly doubled the year-ago quarter.

Sources:

  • Newsbytes.com. "Nasdaq Records Third-Largest Daily Gain in Its History, Dow Bounces Back." http://www.newsbytes.com, 20001019/WIRES BUSINESS, ONLINE, TELECOM, PC/NETSTOCKS/PHOTO