Stocks Rise; Nasdaq at Highest Level in 18 Months
By REUTERS
Filed at 4:54 p.m. ET
NEW YORK (Reuters) - Stocks rose on Monday, resuming last week's upward march, as investors welcomed reports from Wall Street analysts suggesting a rebound in the economy and corporate profits is on its way.
Technology stocks led the way, in moderate trading, pulling the technology-packed Nasdaq Composite Index (.IXIC) to a closing level not seen since March 2002. The index is up 41 percent so far this year.
``We know the economics are getting better -- barring employment -- and we are two weeks away from earnings,'' said Peter Dunay, chief market strategist at brokerage Wall Street Access. ``The hope is that the earnings will show as much strength as the economic data.''
Stocks stumbled on Friday after a report showed that U.S. employers cut jobs in August at their fastest pace since March. But the momentum which has pushed major indexes to highs not seen in at least 14 months is still in play, investors said.
``We have technical trading momentum and that feeds on itself,'' said Dunay.
The blue-chip Dow Jones industrial average (.DJI) closed up 82.95 points, or 0.87 percent, at 9,586.29. The broader Standard & Poor's 500 Index (.SPX) rose 10.25 points, or 1 percent, to 1,031.64. The technology-laced Nasdaq Composite Index (.IXIC) closed up 30.38 points, or 1.63 percent, at 1,888.62.
Last week, the Dow racked up its fifth straight week of gains, while Nasdaq and the S&P 500 notched their fourth consecutive week of gains. So far this year, the Dow is up 15 percent and the S&P 500 up 17 percent.
Advancers outnumbered decliners more than 2 to 1 on the New York Stock Exchange, with 1.3 billion shares traded. Nasdaq advancers outnumbered decliners 2 to 1, with 2 billion shares traded.
Drugmaker Merck & Co. (MRK.N) led the Dow higher after a Sept. 8 Barron's article said pharmaceutical stocks, which have trailed the broader stock market this year, look attractive. Merck's shares rose $1.60, or 3.1 percent, to $52.60.
International Business Machines (IBM.N) shares gained after Credit Suisse First Boston raised its investment rating on the computer maker. IBM was the second-biggest percentage gainer in the Dow, rising $2.16, or 2.5 percent, to $89.10.
Shares of Nortel Networks Corp. (NT.N)(NT.TO) rose 44 cents, or 10.7 percent, to $4.55 after Bell Canada said it would buy $146 million of the telecommunication company's equipment over three years. |
