Stocks Surge, Cisco Stands by Targets
Wednesday October 3, 1:36 pm Eastern Time
NEW YORK (Reuters) - Stocks surged in early afternoon trading on Wednesday after Cisco Systems Inc. (NasdaqNM:CSCO - news) stood by its earnings targets, lifting sentiment already underpinned by upbeat economic data and the prospect of more fiscal stimulus from the Bush administration.
The technology-packed Nasdaq Composite Index (.IXIC) rallied 81.29 points, or 5.45 percent, to 1,573.62. The Dow Jones industrial average (.DJI) jumped 95.62 points, or 1.07 percent, to 9,046.21. The broader Standard & Poor's 500 Index (.SPX) was up 14.29 points, or 1.36 percent, at 1,065.62.
Cisco, a technology bellwether, leaped $2.46 to $13.94 and pulled the market higher. The company's chief executive said he is comfortable with analysts' quarterly estimates for the world's largest maker of Internet networking equipment.
The rally added to gains on Tuesday after the Federal Reserve cut interest rates for a ninth time this year to boost the economy. Wednesday's advance had gained momentum after Treasury Secretary Paul O'Neill said a legislative package to boost the economy after the Sept. 11 attacks could total up to $75 billion. This would come on top of emergency money already approved by Congress.
The National Association of Purchasing Management's non-manufacturing report for September showed the non-manufacturing business activity index rose to 50.2 last month from 45.50 in August, which was then a record four-year low. Economists on average were expecting the latest reading to come in even lower -- at 43. A reading above 50 indicates growth, while one below 50 shows contraction.
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BTW, it's a FANTASTIC DAY....confidence is coming back....What a great day to be LONG...=)
Regards,
Scott |
