SAN FRANCISCO (03/30/2000) - Today might have marked an important anniversary for the Dow - the index hit 10000 on this day last year - but the Nasdaq made all the news. The tech-rich index suffered its third-straight day of losses, dropping 189.22, or nearly 4 percent, to close at 4644.67. Neither earnings reports nor interest rate moves could take the blame. Investors simply seemed to be more skittish about high valuations.
This index may as well go by the name "Roller coaster." The Nasdaq's recent losses follow four days' worth of solid gains last week, and the index reached all-time highs earlier this month. Yet that confidence was nowhere to be seen today as investors fled all things tech, be they pure Internet plays or tech blue chips. Intel was down $3.19, to $131.88, while Oracle lost $4.06 to close at $82.50. Dell also shed some of its recent gains, falling $2.06, to $53.81, and Sun Microsystems dropped $3.50, to $97.13.
ExciteAtHome managed to survive, gaining $3.38, to $37.69, as did Microsoft, which rose $2.88, to $107.19, during the silence that surrounds its settlement talks. Internet highfliers were the hardest hit, with JDS Uniphase down $9.69, to $119.38, Yahoo down $17.94, to $177.06, and DoubleClick losing $9 to close at $97.63.
EBay was among the day's biggest losers, down a whopping $24.19 to close at $199. The losses paid off for the Dow, however, as the money flowed into a few of its stalwarts. Wal-Mart gained $4.69 to close at $59.19, Coca-Cola was up $2 to close at $46.88, and General Electric climbed $8 to end at $164. Exxon Mobil also posted a gain, a likely reaction to news that OPEC has agreed to boost oil production, stemming corporate fears over fuel prices.
Exxon gained $1.56 to close at $80.56. The market also rejected a budding union today: Shares of Internet health care technology provider TriZetto Group dropped 42 percent, down $24.56 to close at $33.50, after the company announced plans to buy IMS Health in an $8 billion stock deal. Shares of IMS Health likewise fell, losing $4.88, or 23 percent, to close at $16.75.