marketwatch.nytimes.com
Drop in Jobless Claims Boosts Dow 55
By THE ASSOCIATED PRESS
Published: December 18, 2003
Filed at 12:32 p.m. ET
NEW YORK (AP) -- An unexpectedly sharp decline in jobless claims boosted Wall Street Thursday, sending stocks higher for a third day as investors grew more confident that the economic recovery was firmly under way.
``The numbers show that the jobs situation might be better than people expected all along ... and the economy is actually going well,'' said Tim Smalls, trader at SG Cowen Securities.
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But he added, ``What you're seeing is a lot of money managers shutting down for the year. I think you'll see some money put to work. But you won't see a big rush to invest.''
At midday, the Dow Jones industrial average was up 55.34, or 0.6 percent, at 10,200.60. That followed a two-day gain of 122 points that sent the blue-chip average to its highest level since May 23, 2002.
The broader market was also higher. The Nasdaq composite index gained 21.55, or 1.1 percent, to 1,942.88. The Standard & Poor's 500 index rose 6.47, or 0.6 percent, to 1,082.95.
The Labor Department reported Thursday that new jobless claims fell last week by a seasonally adjusted 22,000 to 353,000, the lowest level since Nov. 1. The decline was much larger than analysts' expectations.
Meanwhile, the Conference Board reported that its Composite Index of Leading Economic Indicators rose to 114.2 last month, offering hope that the economic recovery was gaining momentum. The 0.3 percent was in line with analysts' expectations.
Stocks have gained in recent weeks as strong economic data have reinforced investors' expectations of a solid rebound. However, analysts wonder if stock valuations might be getting a bit pricey.
American Express Co. climbed $1.47 to $46.47 after UBS raised the financial company's stock rating to ``buy'' from ``neutral.''
Bed Bath & Beyond jumped $2.22 to $42.18 after the retailer posted quarterly profits that came in higher than analysts' projections.
Honeywell International Inc. rose $1.07 to $31.33 after J.P. Morgan upgraded the company's stock rating to ``overweight'' from ``neutral.''
Decliners included Morgan Stanley, which fell $2.01 to $55.62, even though the brokerage firm reported quarterly earnings that beat Wall Street's estimates by 4 cents per share.
Goldman Sachs Group Inc. lost $1.72 to $96.63 despite posting fourth-quarter profits that handily beat analysts' forecasts. The company also said Lloyd C. Blankfein, a Goldman vice chairman, will become the company's president after current president John Thain was named chief executive of the New York Stock Exchange.
Advancing issues outnumbered decliners about 8 to 5 on the New York Stock Exchange. Volume came to 621.60 million shares, compared with 578.26 million traded at the same point Wednesday.
The Russell 2000 index, which tracks smaller company stocks, rose 3.16, or 0.6 percent, to 541.88.
Overseas, Japan's Nikkei stock average finished 0.1 percent higher. In Europe, Britain's FTSE 100 increased 1 percent, France's CAC-40 rose 0.7 percent, and Germany's DAX index was up 0.6 percent.
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