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Stock Watch – Market Stages Rally, Closes in Positive Territory

Posted: 06/2001

Stock Watch

Market Stages Rally, Closes in Positive Territory

Easter week closed (April 16–our trading deadline) in positive territory for the Dow after a four-day rally that sent tech stocks to their second-best week ever. The good news was tempered, however, by rocky forecasts and earnings by many companies. Still, the overall sentiment was upbeat.

“There are no inflationary pressures like a year ago,” said Gary Thayer, chief economist at A.G. Edwards & Sons Inc. (www.agedwards.com). “They do think it leaves the door open for a rate cut.”

The Dow Jones Industrial Average ended in positive terrain, gaining 127.28 points, or 1.27 percent to close at 10,158.56. In contrast, the PHONE+ Stock Index faltered, shedding 35.77 points, or 1.51 percent, to close at 2,326.24. Declining issues outpaced advancing issues 84 to 34.

Shares of United States Cellular Corp. (www.uscc.com) rose 7.75 points, or 13.19 percent, after Lucent Technologies Inc. (www.lucent.com) said it will sell up to $100 million in digital wireless systems, installation and engineering services to the company over a four-year period. U.S. Cellular will use the technology for its networks in Virginia, West Virginia and North and South Carolina. U.S. Cellular closed at $66.50 and was our top-dollar gainer during the month.

Microcell PCS (www.microcell.com) dropped 7.58 points, or 43.31 percent, and closed at $9.92. Microcell said it added 62,767 new retail and wholesale subscribers in 2001’s first quarter. The company said its subscriber base rose by 52 percent during the past 12 months.

“Given the competitive wireless marketplace, we are pleased with our market share performance this quarter, which is in line with the company’s performance in previous quarters,” said Microcell PCS president and CEO Alain Rhéaume. Microcell was our top-dollar loser.

News that Winstar Communications Inc. (www.winstar.com) failed to make about $75 million in interest payments, and that it might file for Chapter 11 bankruptcy protection sent its stock tumbling 7.28 points, or 95.41 percent. Winstar closed at $0.35 and was our top percentage loser.

PHONE+ Service Provider Index
Top 10 Percentage Gainers 3/15/01
Close
($)
4/16/01
Close
($)
Net
Change
($)
Percent
Change
(%)
US Wats Inc. 0.24 0.51 0.27 112.50
Talk America Holdings Inc. 1.41 1.76 0.35 25.16
U.S. Cellular Corp. 58.75 66.50 7.75 13.19
WorldCom Inc. 17.56 19.49 1.93 10.98
Nextel Communications Inc. 13.75 15.21 1.46 10.62
General Communication Inc. 8.13 8.98 0.86 10.52
Powertel Inc. 55.06 59.91 4.85 8.80
Verizon Communications Inc. 48.05 52.00 3.95 8.22
Sprint Corp. 21.70 23.41 1.71 7.88
Cable & Wireless plc 20.68 22.20 1.52 7.35

Top 10 Percentage Losers

Winstar Communications Inc. 7.63 0.35 -7.28 -95.41
Advanced Radio Telecom Corp. 1.03 0.28 -0.75 -72.85
Teligent Inc. 1.47 0.44 -1.03 -70.04
Motient Corp. 2.84 1.22 -1.62 -57.10
US LEC Corp. 8.28 4.62 -3.66 -44.21
Microcell Telecommunications Inc. 17.50 9.92 -7.58 -43.31
Aquis Communications Group Inc. 0.13 0.08 -0.06 -42.31
Metromedia Fiber Network Inc. 7.22 4.26 -2.96 -40.99
RCN Corp. 6.25 3.99 -2.26 -36.16
Metrocall Inc. 0.22  0.14 -0.08 -36.00

 

Indices 3/15/01
Close
4/16/01
Close
Net Change Percent Change
PHONE+ Stock Index 2,362.0 2,326.24 -35.77 -1.51
Service Provider Index 1,870.8 1,899.23 28.42 1.52
Dow Jones Industrial Average 10,031.28 10,158.56 127.28 1.27
S&P 500 Stock Index 1,173.56 1,179.66 6.10 0.52
Nasdaq Composite Index 1,940.71 1,909.52 -31.19 -1.61
NYSE Composite Index 598.85 602.32 3.47 0.58
Market Diary:
Advances: 34
Declines: 84
Unchanged: 4
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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