Newspaper article THE JOURNAL RECORD

Bargain Hunters Lift Wall Street

Newspaper article THE JOURNAL RECORD

Bargain Hunters Lift Wall Street

Article excerpt

NEW YORK (AP) -- Things started to look grim again on Wall Street, but when Monday didn't turn into a repeat of Friday's rout, investors began bottom-fishing, helping the Dow Jones industrial average regain more than 100 points.

The Dow, which on Friday tumbled 247 points for its second worst point-loss ever, rebounded over the final two hours of Monday's session, erasing a 76-point slide and then rising 108.7 to 7,803.36.

"People came in today expecting the worst, but the worst never materialized," said Larry Rice, chief investment officer at Josephthal, Lyon & Ross, noting numerous media reports over the weekend suggesting the market's downturn has further to go. Broad-market measures also rallied into the close, led by technology shares, which had been struggling most of the day after a disappointing profit report from Hewlett-Packard. Noting that similar high-profile earnings disappointments had triggered last summer's bruising selloff, analysts said it was encouraging to see such resilience in the stock market, particularly after troubling profit forecasts issued by Coca-Cola and Gillette over the past two weeks. Notably, while Hewlett-Packard slid 2 1/4 to 63 13/16 as the Dow's weakest component, IBM jumped 4 1/16 to 104 to lead the Dow's advance and Intel rose 2 7/16 to 94 9/16 as the most active Nasdaq issue. Still, market experts were also quick to point out that Monday's rally was tainted by the negative tone of the broad market, where declining issues outnumbered advancers. The session started smoothly, with most indexes edging higher as bargain hunters tried to take advantage of Friday's sharp decline. But there was little conviction behind the early buying, and the advance quickly lost its momentum. The market also steadied on the way down, however, giving bargain hunters enough confidence to go back to work. …

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