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Wall St. rally continues
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October 29, 1999: 11:56 a.m. ET
Gains led by technology sector; Nasdaq skates in record territory
By Staff Writer Jill Bebar
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NEW YORK (CNNfn) - Wall Street continued to post sharp gains midday Friday, led by technology shares, as more market-friendly economic news extended a rally that began Wednesday.
Shortly before 11:30 a.m. ET, the Dow Jones industrial average rose 115.88, or almost 1 percent, to 10,738.41. One the New York Stock Exchange, advances outnumbered declines 1,984 to 815, while trading volume reached an active 460 million shares.
The Nasdaq composite soared 85.16, or 2.9 percent, trading in record territory at 2,960.38. The S&P 500 index advanced 25.56, or 1.8 percent, to 1,368.00.
The bond market advanced further, with the benchmark 30-year Treasury bond rising 26/32 of a point in price, lowering its yield to 6.19 percent from 6.25 percent Thursday.
The dollar fell against the yen but was little changed against the euro.
Investors cheer latest economic news
news that new home sales fell 12.8 percent in September to an annual rate of 811,000, far below forecasts of 950,000, was viewed positively because it further alleviated concern that the Federal Reserve will raise interest rates again.
Also, the Chicago Purchasing Managers index, which measures the manufacturing economy in the region, rose to 58.8 in October from 53.8 in September. However, the closely watched prices paid component fell sharply to 65.4 in October from 71.0 in September, another positive for the market.
Technology shares again in focus
The technology sector continued to dominate focus. America Online Inc. (AOL) rose 2-7/8 to 129-3/8. The Internet services giant announced a two-for-one stock split late Thursday
Priceline.com (PCLN) dropped 4-13/16 to 63-1/16 after reporting stronger-than-expected third-quarter results of an 8-cents per share loss, excluding charges; analysts were expecting a 10-cent-a-share loss. The online auction service also posted higher revenue.
In other Internet issues, Amazon.com (AMZN) slipped 1 to 70, but Yahoo! (YHOO) rose 3-1/4 to 178-1/4.
Shares of Go2Net Inc. (GNET) and Net2Phone Inc. (NTOP) rose sharply on news the companies plan an Internet telephone services deal. Go2Net jumped 8-1/16, or nearly 14 percent, to 67-3/16, while Net2Phone advanced 3-1/8 to 55-5/8.
Intel Corp. (INTC), the world's largest chip marker, jumped 4-15/16 to 77-1/8 on news of a positive earnings forecast for its upcoming quarter. The company cited strong demand for its products in a conference call with analysts Thursday. In addition, it expects Y2K issues to have little impact.
On the skids was Lockheed Martin Corp. (LMT), plummeting 5-3/16, or almost 23 percent, to 17-3/4. The defense firm Friday reported a 32 percent drop in third-quarter income and warned its earnings next year will be lower than originally expected.
Also suffering was eToys Inc. (ETYS), declining 6 to 64-5/8. The online retailer posted a second-quarter loss.
Greenspan keeps mum on interest rates
Federal Reserve Chairman Alan Greenspan didn't directly comment on interest rates in a speech to a business group Thursday evening. The Fed chairman did warn that strong productivity could slow down in the future. Strong gains in productivity have helped temper inflation in recent years, even as the job market remains extremely tight.
His comments, although reassuring to the market, had little impact. 
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