Nasdaq Closes Below 2,000; Blue Chips End Up

N E W  Y O R K, June 18, 2001 -- Technology stocks fell as Level 3 Communications became the latest company to blindside investors with a profit warning, driving theNasdaq composite index to a losing streak unseen in sixmonths.

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The Nasdaq fell 39.79 points, or 1.96 percent, to 1,988.64,based on the latest data, its first close below 2,000 sinceApril 17 and the seventh-straight down session, a losing streakunseen since December, 2000, according to MarketHistory.com.

But the Dow Jones industrial average rose 21.74 points, or0.20 percent, to 10,645.38, on the strength of General MotorsCorp. and United Technologies while the benchmark Standard &Poor's 500 fell 5.93 points, or 0.49 percent, to 1,208.43.

"The earnings news seems to be more negative than positive,and there are still some other looming issues," said PeterGottlieb, portfolio manager at First Albany Asset Management."There still doesn't seem to be a compelling reason to buy."

Level 3, which provides high-speed communications servicesto businesses, cut its financial targets through 2002 and plansto eliminate 1,400 jobs, or 24 percent of its work force, dueto the slowing U.S. economy and delayed purchases by customers.The shares fell nearly 22 percent, or $1.65, to $5.97.

General Motors climbed $2.16 to $61.51 — a gain thataccounted for almost two-thirds of the Dow's rise — after aninterview with top management published in the latest issue offinancial newspaper Barron's boosted hopes the automaker canreverse decades of falling market share with better cars andtrucks, and more emphasis on productivity.

Investors were eagerly awaiting the release of OracleCorp.'s earnings, expected after the close. The report will bescrutinized for hints of how the high-tech sector is faringamid the U.S. economic slump, traders said.

Eyes on Oracle

Other telecommunications-related shares also took a hit,like top optic-fiber supplier JDS Uniphase Corp., which fell$1.16 to $11.28. JDS warned last week it would sufferlower-than-expected revenues.

Oracle slipped 8 cents to $14.92, paring a gain of as muchas 30 cents. Some traders said Oracle's decision not to issue guidanceahead of its results might mean Oracle could come up with apositive surprise. Others were not so sure.

"Investors are getting themselves flat ahead of Oracle,"said Robert Arancio, head of Nasdaq trading at Lehman Brothers."There's concern about guidance and today is going to bechoppy."

Still, semiconductor-equipment shares bucked the trendafter positive comments by Salomon Smith Barney. Lam ResearchCorp., among others, boosted their price targets on thesector's stocks, saying orders in the second quarter werelikely to improve from the first quarter.

Electronic components maker Lam jumped $1.14 to $29.58.

"There are a plethora of things both negative and positivetoday — Oracle is to report, semis are on the positive side,and then there are preannouncements on the downside," said ArtHogan, chief market analyst at Jefferies & Co. "With all thisto deal with, it's very difficult to determine a direction."

Proposed buyouts had some stocks jumping on hopes thecompanies would be acquired for more than their current shareprice.

No. 1 U.S. beef producer IBP Inc. surged $5.33 to $23.60after a Delaware court said Friday that poultry producer TysonFoods must stand by its agreement to buy IBP.

Tyson in March dropped its $3.2 billion bid for IBP, citingbreaches of IBP's merger agreement but the court found thatTyson had all the information it needed to make an informeddecision about buying IBP. Tyson slumped $2.17 to $9.21.

Car reservations systems supplier Galileo InternationalInc. rose $1.35 to $31.15. Cendant Corp., which owns the Avisrental car and Century 21 real estate broker brands, said itwould buy Galileo for $33 a share. Cendant gained 52 cents to$18.97.

"The earnings news seems to be more negative than positive,and there are still some other looming issues," said PeterGottlieb, portfolio manager at First Albany Asset Management."There still doesn't seem to be a compelling reason to buy."

Level 3, which provides high-speed communications servicesto businesses, cut its financial targets through 2002 and plansto eliminate 1,400 jobs, or 24 percent of its work force, dueto the slowing U.S. economy and delayed purchases by customers.The shares fell nearly 22 percent, or $1.65, to $5.97.

General Motors climbed $2.16 to $61.51 — a gain thataccounted for almost two-thirds of the Dow's rise — after aninterview with top management published in the latest issue offinancial newspaper Barron's boosted hopes the automaker canreverse decades of falling market share with better cars andtrucks, and more emphasis on productivity.

Investors were eagerly awaiting the release of OracleCorp.'s earnings, expected after the close. The report will bescrutinized for hints of how the high-tech sector is faringamid the U.S. economic slump, traders said.

Eyes on Oracle

Other telecommunications-related shares also took a hit,like top optic-fiber supplier JDS Uniphase Corp., which fell$1.16 to $11.28. JDS warned last week it would sufferlower-than-expected revenues.

Oracle slipped 8 cents to $14.92, paring a gain of as muchas 30 cents. Some traders said Oracle's decision not to issue guidanceahead of its results might mean Oracle could come up with apositive surprise. Others were not so sure.

"Investors are getting themselves flat ahead of Oracle,"said Robert Arancio, head of Nasdaq trading at Lehman Brothers."There's concern about guidance and today is going to bechoppy."

Still, semiconductor-equipment shares bucked the trendafter positive comments by Salomon Smith Barney. Lam ResearchCorp., among others, boosted their price targets on thesector's stocks, saying orders in the second quarter werelikely to improve from the first quarter.

Electronic components maker Lam jumped $1.14 to $29.58.

"There are a plethora of things both negative and positivetoday — Oracle is to report, semis are on the positive side,and then there are preannouncements on the downside," said ArtHogan, chief market analyst at Jefferies & Co. "With all thisto deal with, it's very difficult to determine a direction."

Proposed buyouts had some stocks jumping on hopes thecompanies would be acquired for more than their current shareprice.

No. 1 U.S. beef producer IBP Inc. surged $5.33 to $23.60after a Delaware court said Friday that poultry producer TysonFoods must stand by its agreement to buy IBP.

Tyson in March dropped its $3.2 billion bid for IBP, citingbreaches of IBP's merger agreement but the court found thatTyson had all the information it needed to make an informeddecision about buying IBP. Tyson slumped $2.17 to $9.21.

Car reservations systems supplier Galileo InternationalInc. rose $1.35 to $31.15. Cendant Corp., which owns the Avisrental car and Century 21 real estate broker brands, said itwould buy Galileo for $33 a share. Cendant gained 52 cents to$18.97.

Investors were eagerly awaiting the release of OracleCorp.'s earnings, expected after the close. The report will bescrutinized for hints of how the high-tech sector is faringamid the U.S. economic slump, traders said.

Eyes on Oracle

Other telecommunications-related shares also took a hit,like top optic-fiber supplier JDS Uniphase Corp., which fell$1.16 to $11.28. JDS warned last week it would sufferlower-than-expected revenues.

Oracle slipped 8 cents to $14.92, paring a gain of as muchas 30 cents. Some traders said Oracle's decision not to issue guidanceahead of its results might mean Oracle could come up with apositive surprise. Others were not so sure.

"Investors are getting themselves flat ahead of Oracle,"said Robert Arancio, head of Nasdaq trading at Lehman Brothers."There's concern about guidance and today is going to bechoppy."

Still, semiconductor-equipment shares bucked the trendafter positive comments by Salomon Smith Barney. Lam ResearchCorp., among others, boosted their price targets on thesector's stocks, saying orders in the second quarter werelikely to improve from the first quarter.

Electronic components maker Lam jumped $1.14 to $29.58.

"There are a plethora of things both negative and positivetoday — Oracle is to report, semis are on the positive side,and then there are preannouncements on the downside," said ArtHogan, chief market analyst at Jefferies & Co. "With all thisto deal with, it's very difficult to determine a direction."

Proposed buyouts had some stocks jumping on hopes thecompanies would be acquired for more than their current shareprice.

No. 1 U.S. beef producer IBP Inc. surged $5.33 to $23.60after a Delaware court said Friday that poultry producer TysonFoods must stand by its agreement to buy IBP.

Tyson in March dropped its $3.2 billion bid for IBP, citingbreaches of IBP's merger agreement but the court found thatTyson had all the information it needed to make an informeddecision about buying IBP. Tyson slumped $2.17 to $9.21.

Car reservations systems supplier Galileo InternationalInc. rose $1.35 to $31.15. Cendant Corp., which owns the Avisrental car and Century 21 real estate broker brands, said itwould buy Galileo for $33 a share. Cendant gained 52 cents to$18.97.

"Investors are getting themselves flat ahead of Oracle,"said Robert Arancio, head of Nasdaq trading at Lehman Brothers."There's concern about guidance and today is going to bechoppy."

Still, semiconductor-equipment shares bucked the trendafter positive comments by Salomon Smith Barney. Lam ResearchCorp., among others, boosted their price targets on thesector's stocks, saying orders in the second quarter werelikely to improve from the first quarter.

Electronic components maker Lam jumped $1.14 to $29.58.

"There are a plethora of things both negative and positivetoday — Oracle is to report, semis are on the positive side,and then there are preannouncements on the downside," said ArtHogan, chief market analyst at Jefferies & Co. "With all thisto deal with, it's very difficult to determine a direction."

Proposed buyouts had some stocks jumping on hopes thecompanies would be acquired for more than their current shareprice.

No. 1 U.S. beef producer IBP Inc. surged $5.33 to $23.60after a Delaware court said Friday that poultry producer TysonFoods must stand by its agreement to buy IBP.

Tyson in March dropped its $3.2 billion bid for IBP, citingbreaches of IBP's merger agreement but the court found thatTyson had all the information it needed to make an informeddecision about buying IBP. Tyson slumped $2.17 to $9.21.

Car reservations systems supplier Galileo InternationalInc. rose $1.35 to $31.15. Cendant Corp., which owns the Avisrental car and Century 21 real estate broker brands, said itwould buy Galileo for $33 a share. Cendant gained 52 cents to$18.97.

Car reservations systems supplier Galileo InternationalInc. rose $1.35 to $31.15. Cendant Corp., which owns the Avisrental car and Century 21 real estate broker brands, said itwould buy Galileo for $33 a share. Cendant gained 52 cents to$18.97.