Newspaper article THE JOURNAL RECORD

Dow Jones, NASDAQ Rebound

Newspaper article THE JOURNAL RECORD

Dow Jones, NASDAQ Rebound

Article excerpt

NEW YORK (AP) -- A burst of buying set off an afternoon tech rally on Wall Street Monday, reversing an earlier selloff that sent the Nasdaq composite index briefly below the closing low it reached after the Sept. 11 terror attacks. The major stock indexes had their first winning session in a week.

But declining issues outnumbered advancers on the New York Stock Exchange, an indication that the rally was less than wholehearted. Analysts said the gains reflected buying by traders to cover bets that stocks would fall further rather than any improvement in investor confidence. The approach of the end of the second quarter on Friday also increased the volatility.

"The market is groping for a bottom and we haven't found yet a catalyst to bring in aggressive buyers," said Robert Streed, portfolio manager of Northern Select Equity Fund in Chicago. Stock prices "haven't dropped low enough yet, and the news on balance continues to disappoint people. The corporate governance and terrorism issues are still weighing on investor psychology."

The technology-dominated Nasdaq closed up 19.38, or 1.3 percent, at 1,460.34, according to preliminary calculations, rebounding from an earlier decline of 26 points that put the index 9 points below its Sept. 21 close of 1,423.19.

Other indicators also recovered. The Standard & Poor's 500 index, which had come within 8 points of its Sept. 21 close, advanced 3.58, or 0.4 percent, to 992.72.

And the Dow Jones Industrial Average rose 28.03, or 0.3 percent, to 9,281.82, putting it more than 1,000 points above its Sept. 21 finish.

All three indexes last closed higher on Monday, June 17.

The Dow, which traded between a gain of 116 points and a loss of 170 points during the day, owed much of its comeback to its tech components, including IBM, Microsoft and Intel.

IBM rose 95 cents, or 1.4 percent, to $69.70 despite falling early in the session after Goldman Sachs reduced its estimates on the stock because of difficult business conditions. Intel rose 60 cents, or 3.2 percent, to $19.33, while Microsoft soared $1.88, or 3.6 percent, to $54.16. Intel and Microsoft also have a significant influence on the Nasdaq. …

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