Market Update from Briefing.com (and Yahoo!)

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Close Dow -141.60 at 10495, Nasdaq -56.00 at 2151, S&P -18.00 at 1239:

Well the Nasdaq closed out February with a 22% loss, it's third largest monthly decline in history. Today's activity on the Nasdaq did it's part to contribute to that dubious distinction by creating yet another two-year low. The Nasdaq wasn't alone though as each of the major indices closed in the red.

Sell pressure came against the backdrop of Alan Greenspan's testimony before the House Financial Services Committee this morning. Comments from the Fed Chairman have led investors to feel the chances of an inter-meeting rate cut are much less likely than previously believed. In his testimony this morning, Greenspan expressed a more cautious tone regarding very near-term economic circumstances, but continued to maintain a more positive outlook for the second half of 2001.

Semiconductors helped lead the Nasdaq lower following earnings warnings out of Altera (ALTR -0.38) and Elantec (ELNT -10.88). Also weak in today's trading was the optics sector, with selling triggered by lowered earnings guidance from Avanex (AVNX -4.56). On the broader market, the XOI closed down 1.2% behind this morning's call out of Lehman Brothers to cut oil refiners from overweight to underweight.

The markets continue to be extremely oversold on a technical basis but lack real positive catalysts to drive any buy interest with conviction.

NYSE Adv/Dec 1388/1677, Nasdaq Adv/Dec 1496/2291

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