About 140 million shares traded on the New York Stock Exchange in the first hour of the session, 30 percent less than at the same time a week ago. The low volume is making for exaggerated moves in both directions, investors said.
"Just 20 to 25 percent of the people who normally trade stocks are at their desks today," said Uri Landesman, chief investment officer of AFA Management Partners. "And the low volume is pointing to a ton of volatility in virtually a no-news week."
Today's trades will be settled on the shortened day on Friday, the last session of 1999. Some fund managers finished their buying for the year yesterday, to avoid post-New Year settlements out of concern transactions will be botched by computer breakdowns associated with the switch to the year 2000.
"Everyone wants the decks cleared by the 31st because of Y2K," said David Bayer, a money manager at Knappenberger Bayer Growth Advisors in Minnetonka, Minn. "The big money did what it wanted to do yesterday."
The Dow average rose 74.62, or 0.7 percent, to 11,465.7 after falling 8 points. The Nasdaq gained 15.11, or 0.4 percent, to 3,990.49, recovering from a 32-point drop. At last check it had touched 4,000. The Standard & Poor's 500 Index climbed 2.83, or 0.2 percent, to 1,459.92.
Five stocks fell for every four that rose on the New York Stock Exchange.
The Nasdaq is up 81.9 percent for the year, on track for its best performance in its 28-year history and the best performance of a major U.S. index ever. Just today, the Nasdaq surpassed the Dow Jones average's 81.49 percent gain in 1915.
Qualcomm, up 1,907 percent this year, rose 6.5 to 520. JDS Uniphase, up 882 percent, gained 5.5 to 340.56.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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