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Foolish Market Update
October 29, 1997

Remember Fools, we're long-term investors. So don't overreact to the big market moves we've been having the last few days. Check this area for updates and new Foolish articles.

6:00 p.m. EST -- Remember risk? In the Evening News Randy Befumo says that an unfortunate consequence of a quick bounce-back is that it's easy to forget about risk.

3:00 PM EST -- All three market indices are in positive territory with an hour left in the trading day. The DJIA is up 36.34 points to 7534.66, the Nasdaq is up 4.57 points to 1607.59, and the S&P is up 1.37 points to 923.22.

12:30 PM EST -- What's the market doing at midday? Check our Lunchtime News to find out.

10:45 AM EST -- There were no "irrational exuberance" comments in Alan Greenspan's Joint Economic Committee address today, but he did speak positively of the American economy. Greenspan hopes that the recent market activity will slow growth to more sustainable levels. Click here to read Greenspan's entire address. The DJIA is up 119.10 to 7617.42, the Nasdaq is up 21.23 to 1624.25 and the S&P is up 13.34 to 935.19.

9:45 AM EST -- The first fifteen minutes of trading on Wall Street were rather calm this morning compared to the wild ride of the past few days. The S&P 500 gained 3.47 points to 925.32, the Nasdaq rose 10.85 points to 1613.87 and the Dow Jones Industrial Average added 44.69 points to 7543.01. Fed Chairman Alan Greenspan is scheduled to address the congressional Joint Economic Committee about recent market activity at 10:00 a.m. this morning.

8:00 AM EST-- European bourses opened strongly across Europe with the German IBEX leading the way by climbing roughly 4.5%. Britain's Financial Times, France's CAC 40 and Germany's DAX all powered ahead more than 3%, reversing some of yesterday's losses. The scene was not all peaches and cream, though, as Italy's major index slumped approximately 6%.

6:00 AM EST-- Almost every Asian market we can find on our spanking new Bloomberg had a positive session overnight, rising a few percent, with one of the sole exceptions being troubled Thailand. With no real new news in Asia, analysts are attributing this to the strong performance in stocks across North America yesterday.

Hong Kong's Hang Seng index closed up 18.68% to 10,765.30. More than a third of Hong Kong's gains in the 33-stock index coming from HSBC Holdings PLC's powerful $25 HK-plus move to $188 HK. Shares are still a ways away from the $270ish HK high set a few weeks ag. Thailand, on the other hand, slumped 0.79% as currency worries continued to plague investors concerned that the local economy might slow down.

11:30 PM EST -- The Asian markets soared at the open on Wednesday. Hong Kong's Hang Seng index quickly climbed 17% and Japan's Nikkei jumped more than 400 points.

4:30 PM EST -- U.S. stocks rallied throughout most of Tuesday with all major indices gaining back much of the ground they lost on Monday. The Dow Jones Industrial Average surged 4.71% to close at 7,498.32, the S&P 500 gained 5.12% to close at 921.85, and the Nasdaq added 4.25% to close at 1600.34.

The Boring Portfolio -- Boring rebounds and says "see ya" to Oxford after new information surfaces today.
The Fool Portfolio -- Stock market history and putting Monday's market move into perspective.
The Evening News -- What does it mean to speculate in a currency and why does currency speculation work?
What Happened in Asia? -- The Fool outlines the events in Hong Kong, Malaysia, Thailand, and Korea that led to the Southeast Asia currency crisis.
Communion of Bears board -- Find out what Fools have been saying.
The Lunchtime News -- The Southeast Asian market turmoil should be no surprise.
The Daily Dow Report -- Peter Lynch speaks to Wall Street.

Market Update
October 28, 1997

11:30 PM EST -- The Asian markets soared at the open on Wednesday. Hong Kong's Hang Seng index quickly climbed 17% and Japan's Nikkei jumped more than 400 points.

4:45pm EST -- Market Close

Hey Fools. The U.S. markets rallied late today with all major indices gaining back much of the ground lost yesterday. The Dow Jones Industrial Average surged 337.17 points to close at 7,498.32, the S&P 500 gained 44.87 to close at 921.85, and the Nasdaq added 65.25 to close at 1600.34. Should Fools really be concerned about these numbers. Nope. Not really, because we're long-term investors and these market moves don't mean much to us. To learn more about the causes behind the Southeast Asian market decline, read our What Happened? collection complete with great timelines and graphs.

3:20pm EST - US Market Update

Good afternoon Fools. We know long-term investors shouldn't pay much attention to market moves, but we figured you Fools wanted to know the scoop on today's market activity. The U.S. markets rallied this afternoon. At 3:20pm EST the Dow Jones Industrial Average surged 347.97 points to 7509.22. The S&P 500 advanced 46.09 points to 923.07 and the Nasdaq rose 65.24 points to 1600.34. Be sure to read Randy Befumo's Fool Plate Special about the events leading up to the Asian market crisis.

1:50pm EST - US Market Update

For the latest complete coverage of the market, click into the Fool's Lunchtime News -- for not just the news, but for analysis and education. A Foolish investor is armed with knowledge, which makes market declines not so mysterious, but an accepted part of investing in a world where economies are unpredictable and ever-changing. Who would have predicted that after the 7% drop yesterday in US Markets and steep declines throughout world markets overnight, that the US market would rebound sharply today? Nobody. No Wise man.

At 1:50 pm EST the US market is still working on a rebound, with the S&P and Nasdaq both up over 1.60%. What will happen for the rest of the day, or on tomorrow? A much better question is: what will happen five or ten years from now? The stocks of leading companies will appreciate as deserved, over the long term. Your best bet right now, if you're panicked, is to head to the Fool's School.

Check back for more Foolish thoughts on the market as we move forward. Also, the Lunchtime News is posted by 12:30 EST, and the Evening News will be posted by 6:30 EST. As well, the Fool will offer a special on the Asian Markets and currencies late this afternoon.

12:30pm EST - US Market Update

At 12:30 EST, the U.S. markets have righted themselves. The Nasdaq shows a 26 point gain (1.7%), while the S&P 500 has chipped in 14 points (1.6%). As you'd expect, participation in the short-term recovery is very broad, with advancers leading decliners by a ratio of better than 5-to-1.

The Foolish approach of blithe indifference in the midst of Wall Street's hysterical short-term shenanigans continues to pay dividends, as all Fool Portfolios are back again beating the market. Continue to tune in to Folly throughout the rest of this volatile day, for updates.

-- David Gardner

(Remember that market updates are always available throughout this day and every other day via our Market Watch feature.)

10:35am EST - US Market Update

The U.S. stock market opened down significantly this morning. About 30 minutes into the day, the Nasdaq was off 56 points (a decline of 3.7%). The S&P 500 was faring better, off only 18 points, or 2.1%. But in the second half hour, the market rocketed back upward as the S&P 500 was suddenly showing a small gain, with the Nasdaq off 1%.

You'll notice that none of the portfolios in our Hall of Portfolios had any trades yesterday or today, as Fools tend to just ride these waves out on the same board we brought to the beach with us. Stay Foolish out there.

-- David Gardner

10:00am EST - US Market Update

The U.S. stock market opened down significantly this morning. About 30 minutes into the day, the Nasdaq is the big loser, off 56 points (a decline of 3.7%). The S&P 500 was faring better, off only 18 points, or 2.1%. The Dow industrials and Foolish Four stocks are proving the most resilient, off fractionally in the face of $4-plus drops in many of the technology darlings (Microsoft, Intel, Dell).

Trying to get a market update, I had the devil of a time even just logging into the Schwab site. It's times like these that remind a Fool why he's a Fool in the first place. Traders, we're not!

David Gardner

7:20am EST - World Market Update

As was expected by many going into the evening last night, world market indices fell hard, following Wall Street's decline of just over 7%. The comedy here (if there is anything amusing about this, which we tend to doubt), is that every market is saying that they are following someone else. The Chief Executive of Hong Kong said in a statement last night that he thought the Hang Seng was just following Wall Street. All European markets are said to be following Asia this morning. When Wall Street opens lower, they'll say that we're following Europe and Asia. Clearly this is irrational when nobody knows exactly why they're selling other than to say "WELL THEY ARE!!! WE HAVE TO AS WELL!"

Hang Seng (HSI) DOWN

1438 pts

(13.7%)

Japan (Nikkei 225) DOWN

725 pts

(4.26%)

Australia (All Ordinaires) DOWN

177 pts

(7.18%)

London (FT-SE 100) DOWN

279 pts

(5.76%)

France (CAC-40) DOWN

176 pts

(6.37%)

Germany (DAX) DOWN

335 pts

(13.7%)

The S&P 500 December Futures are locked limit-down at 859. "Locked limit-down" means that the trading on the futures has been stopped because the contract has fallen as much as they will allow it to fall.

"For a given futures contract, the maximum price change from the previous day's settlement price permitted during a trading session. These limits are sometimes adjusted in fast-moving markets."

Unless traders on Wall Street have an overwhelming amount of will power, chances are very good that the market here will open significantly lower. What happens after the initial sell-off will set the tone for much of the action around the world tonight and tomorrow.

Find out what the Fool thinks about such market moves and then tell us what you think about the market in our Communion of Bears and Communion of Bulls folders.

 

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