Stock Watch – Market Tumbles on Dow Sell-Off

Posted: 04/2000

Market Tumbles on Dow Sell-Off

Although the tech sector screamed ahead in mid-February, the Dow and other traditional companies crumpled under pressure from interest rate concerns. Near the end of our trading session, the entire market retreated under a dramatic sell-off
that sent the Dow Jones Industrial Average to its lowest levels in three months.

Microsoft Corp.
( dragged down the market after the release of a technology research firm’s study suggested the Microsoft’s new operating system may not be compatible with other software.

Some thought the downturn was part of a normal and healthy correction. “The market has come an awfully long way and it really needs a pause,” said Oberweis Asset Management & Brokerage Inc.
( President James
Oberweis, Sr.

The Dow lost 1004.89 points, or 8.57 percent, ending at 10718.09. In contrast, the PHONE+ Stock Index continued its stubbornly positive outlook, gaining 259.87 points, or 5.58 percent, ending at 4913.04. Advancing issues outpaced declining issues 92 to 52.

Shares of VocalTec Communications Ltd.
( jumped after Investec Henderson Crosthwaite Securities
( upped its price target for the company to $63, from $50, because of VocalTec’s increase in shares in ITXC Corp.
( Investec retained its “strong buy” rating on the company. VocalTec increased 19.31 points, or 81.10 percent, and ended at $43.13.

Microcell Telecommunications Inc.
( and Aerial Communica-tions Inc.
( were among our top gainers, after Microcell announced that VoiceStream Wireless
( will contribute $276 million for a 15 percent equity stake in
Microcell, a wireless carrier based in Montreal. The transaction was expected to close at the end of February. VoiceStream is concluding deals with Omnipoint Communications Inc.
( and Aerial Communications. Microcell bounded ahead 15.88 points, or 46.35 percent, to close at $50.13; Aerial ended at $68.63, a jump of 19.44 points, or 39.52 percent.

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