Newspaper article THE JOURNAL RECORD

Wall Street Rallies despite Motorola News

Newspaper article THE JOURNAL RECORD

Wall Street Rallies despite Motorola News

Article excerpt

NEW YORK (AP) -- Wall Street showed it can tolerate bad earnings news Wednesday, rallying sharply despite Motorola's announcement of more losses and job cuts.

The Dow Jones industrials, which surged 188 points, have now won back more than 1,000 of the 1,369 points lost after the Sept. 11 terrorist attacks.

Analysts cautioned that the buying did not signal any kind of fundamental market turnaround -- but rather was an extension of a rebound that began two weeks ago.

"There definitely is some buying going on here. But there is also a sense of tenuousness in the air," said Scott Bleier, chief investment strategist at Prime Charter Ltd. "We are about to go back to the pre-Sept. 11 levels that we broke down from and that's likely to meet with some pretty significant resistance."

The Dow closed up 188.42 at 9,240.86, a gain of 1,005 from its close of 8,235.81 on Sept. 21, the end of the first week of trading after the attacks.

Broader stock indicators also advanced. The Standard & Poor's 500 index gained 24.24 at 1,080.99, while the Nasdaq composite index rose 56.07 to 1,626.26.

All three major indexes are now within striking distance of their pre-attack levels, but market watchers said it's too early to know if investors are feeling less worried about the weak economy and U.S. military action against terrorists or just bargain hunting.

"The bullish scenario here is that people are pretty resilient and will adapt to this new world," said Robert Harrington, head of trading at UBS Warburg. "The bearish scenario is that if there's another terrorist event, the market will fall again."

On Wednesday, investors appeared to be buying on hopes that the muted reaction to Motorola's bad news indicated that Wall Street is expecting the worst -- and won't drop precipitously when dismal third-quarter results come out this month.

Motorola advanced 19 cents to $16.91, overcoming news that the company was cutting another 7,000 jobs -- for a total of 39,000 this year -- and expects another quarterly loss. …

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