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Stock Watch: Encouraging, Grim News Leaves Market Mixed

Posted: 1/2002

Stock Watch

Encouraging, Grim News Leaves Market Mixed

Optimistic investors pushed the stock markets upwards from mid-October to mid-November, although the PHONE+ Stock index did not keep pace with other major indexes.

Economic news was grim and encouraging during the period. The United States reported 415,000 jobs were lost in October, the biggest drop since May 1980.

The U.S. Labor Department said the unemployment rate soared to 5.4 percent in October. That’s a .5 percent increase from the 4.9 percent rate recorded in September, and it represents the highest level in nearly five years.

But other reports helped to ease concerns about inflation and consumer confidence. The Producer Price Index, which measures costs for wholesale goods, fell 1.6 percent in October, a much steeper rate than the 0.4 percent economists were expecting. It was the largest drop since the government began keeping records of the index in 1947.

The drop would indicate that despite economic woes, inflation worries have been kept at bay.

The Dow Jones industrial average rose 5.61 percent to 9,872.39, while the tech-heavy Nasdaq composite index surged 12.04 percent to 1,900.59.

Just behind them, the PHONE+ Stock index posted a 4.03 percent gain to close at 1,938.72. Advancers beat decliners during the period, 64 to 38.

Among the biggest gainers was Cable & Wireless
plc. (www.cw.com). Its shares surged 28.86 percent to $16.70. The global telecommunications company made a string of news announcements that may have encouraged investors. For example, Cable & Wireless’ web infrastructure subsidiary Digital Island (www.digitalisland.net) said Taiwan’s largest telecommunications carrier, Chunghwa Telecom Co. Ltd., (www.cht.com.tw) had joined its private content exchange program. Cable & Wireless also said it would create a European communications network for food giant H. J. Heinz (www.heinz.com).

Broadwing Inc. (www.broadwing.com), meanwhile, took a big hit during the trading period. Its stock fell 0.57 percent to $9.11. Shares of the optical network provider nose-dived in mid-October after the company reported a third-quarter loss of $27.9 million, compared to a net loss a year ago of

$23.3 million.

 

PHONE+ Service Provider Index  10/15/01  11/15/01  Net  Percent
 

Close 

Close  Change  Change
Top 10 Percentage Gainers

($)  ($)  ($)  (%)

Globstar Telecom Ltd. 

0.27  0.65  0.38  140.74

Microcell Telecommunications Inc. 

1.17  2.44  1.27  108.55
Level 3 Communications LLC  3.31  6.88  3.57  107.85

Motient Corp. 

0.21  0.37  0.16  76.19

US Lec Corp. 

3.23  4.60  1.37  42.41

RCN Corp. 

3.10  4.18  1.08  34.84

McLeodUSA Inc.

 
0.57 
0.74  0.17  29.82

Cable & Wireless
plc. 

12.96  16.70  3.74  28.86
Nextel Communications Inc.  8.35  10.56  2.21  26.47

Arch Wireless Inc. 

0.02  0.03  0.01  26.09

Top 10 Percentage Losers

Adelphia Business Solution Inc.

0.96  0.42  -0.54  -56.25

Broadwing Inc. 

15.33  9.11  -6.22  -40.57

ITC^DeltaCom Inc. 

1.10  0.71  -0.39  -35.45

Teletouch Communications Inc. 

0.31  0.23  -0.08  -25.81
Western Wireless Corp.  32.23  26.87  -5.36  -16.63

Electric Lightwave Inc. 

0.35  0.30  -0.05  -14.29

Vocaltec Communications Ltd.

2.20  1.94  -0.26  -11.82

US Wats Inc. 

0.68  0.60  -0.08  -11.76

AT&T Corp. 

19.20  16.98  -2.22  -11.56
SBC Communications Inc.  43.87  39.00  -4.87  -11.10

 

  10/15/01   11/15/01  Net  Percent
Indices Close  Close  Change  Change

PHONE+ Stock Index 

1863.57  1938.72  75.16  4.03

Service Provider Index 

1675.34  1631.55  -43.80  -2.61

Dow Jones Industrial Average 

9347.62  9872.39  524.77  5.61

S&P 500 Stock Index 

1089.98  1142.25  52.27  4.80
NASDAQ Composite Index  1696.31  1900.59  204.28  12.04

NYSE Composite Index 

561.82  579.79  17.97  3.20

 

Market Diary:

Advances:

 64

Declines: 

38
Unchanged:  5

Source: CNET Investor (investor.cnet.com) Boulder, Colorado. This information is based on sources believed to be reliable, and while extensive efforts are made to ensure its accuracy, no guarantees can be made. CNET Investor assumes no liability for any
inaccuracies.


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