Nasdaq---Anthony (slow)
Rally is over---Bob (medium)
>> the nasdaq fell for the first time this week, down 1.7%. maybe some concern creeping into the market today. jim finkel, fund manager at lord abbett said the economic data isn’t quite showing the kind of growth, the huge boost in the economy the investors hoped to see right now. he said the market discounting there would be a better second half this year. if that doesn’t happen that will hurt stocks and there may be a bitd of that creeping into the market. the nasdaq up 23% year to date, but the biotech stocks led the nasdaq higher. they were hit the hardest, down 4.5% as a group. let me show you half a dozen stocks that fell just about $2 or more within the biotech world starting with amgen, biogen, cephalon. these stocks all falling again close to $2 or more. here are three stocks that all fell more than $2. chiron, gilead, genzyme. again, the big loss came in the biotech stocks today and glik nothaus saying it’s over or it’s going to end soon. he’s talking about the market rally. this has been a tremendous move up but not reinforced by earnings growth. that point made yet again. look at software just for a minute here. peoplesoft, oracle, j d ed weards falling. we went to see craig conley today, speaking in new york at a tech conference. did not talk about the oracle hostile bid for peoplesoft. interesting to note that if peoplesoft did acquire j.d. edwards which it start today wheels in motion on that today it would have vaulted ahead of oracle as the number two business software maker here in the u.s. back to you in the studio.
>> anthony massucci at the nasdaq market site. now, after rallying 25% off its march lows, some investors are saying the rally in stocks is over for now. bob bowden joins me with that side of the story. bob.
>> mr. by jarreddy. the rally we’ve seen for the last three monts is not common. only twice since 1953 as the s&p 500 gained more than 20% in the first three months after reaching a low. that according to international strategy and investment, a new york research firm. both of those highs, the next three months gained no more than 7%. seth glikenlaus has worked on wall street for more than $70 and manages almost a billion dollars in assets. he says stocks are rallying though earnings growth is not accelerating and earnings growth probably will not accelerate any time soon.
>> i believe it will end within two or three weeks, if it hasn’t already ended. it’s been a very big move. it’s hard to predict just how big a correction there will be. however, looking for years ahead we are going to be between 7,000 and 10,500 in the dow averages for many years to come. it’s going to be a trading range.
>> morgan stanley’s equity strategist steve galbraith cut his recommended stock weighting on tuesday saying the s&p 500 was 20% overval umptd bob benson senior market strategist for bank of america market capital management agrees that most of this year’s rally is over, calling for the s&p to finish the year flat from today’s level to at most gain 5 person. even the most bullish equity strategists are looking for short-term retreempt this morning bear stearns raised the year end target for the s&p 500 to 1,050 from 950. at the same time he recommended investors wait until share prices fall before putting more money into stocks , adding, it’s difficult for us to get excited about a rally that is not primarily driven by earnings. jeannie is a perfect example. analysts were cutting this year’s earnings forecast, analysts saying they have been way too optimistic about a second half rebound than they now see is likely. g.e. joins companies from diverse industries which lowered earnings forecasts this week, including eastman kodak, clorox and the “new york times”. lane, back to you.
>> bob bowden. our next guest says he’s still finding good value in stocks , though it’s becoming a bit more difficult. franklyn morton is senior vice president, portfolio manager at ariel mutual funds.
