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Pre election surge Original Source Link: (May no longer be active)
http://story.news.yahoo.com/news?tmpl=story2&cid=568&ncid=749&e=1&u=/nm/20021104/bs_nm/markets_stocks_dchttp://story.news.yahoo.com/news?tmpl=story2&cid=568&ncid=749&e=1&u=/nm/20021104/bs_nm/markets_stocks_dc
Stocks Soar, Adding to 4 Weeks of Gains
1 hour, 27 minutes ago
By Denise Duclaux
NEW YORK (Reuters) - Stocks surged at midday on Monday, adding to a four-week streak of gains, as hopes swirled around a possible interest-rate cut this week and Microsoft Corp. climbed after a judge upheld its antitrust settlement.
"Right now some are fearing they are going to be left behind, so buying is begetting buying to a certain extent," said Bryan Piskorowski, market commentator at Prudential Securities.
Microsoft leaped more than 7 percent and helped spark a rally in the technology sector. A federal judge on Friday endorsed Microsoft's antitrust settlement with the U.S. government and nine states in a decision widely seen as a victory for the software giant.
Wall Street wrapped up its fourth straight week of gains on Friday as investors bet on a rate cut at the Federal Reserve (news - web sites)'s policy-setting meeting on Wednesday. A Reuters survey found 21 of 22 U.S. dealers expect a rate cut this week, with 15 of them predicting the cut will be a quarter percentage point.
"There does seem to be a shift in psychology," said James Volk, managing director of equity trading at D.A. Davidson and Co. "Sentiment is shifting from being extremely negative to neutral in some cases, and obviously, a little more optimistic in other cases."
The technology-loaded Nasdaq Composite Index soared 57 points, or 4.20 percent, to 1,417. The blue-chip Dow Jones industrial average leaped 198 points, or 2.33 percent, to 8,716. The broad Standard & Poor's 500 index jumped 22 points, or 2.43 percent, to 923.
Advancing stocks outweighed decliners by 7 to 3 on the New York Stock Exchange (news - web sites) and 2 to 1 on Nasdaq. More than 814 million shares changed hands on the Big Board and more than 1.25 billion on Nasdaq in active trading.
Microsoft climbed $3.80 to $56.80, helping lead the Dow higher and ranking among the most active shares on the Nasdaq. The technology bellwether triggered a rally in computer makers. Dell Computer Corp. jumped $1.47, or more than 5 percent, to $30.45. Hewlett-Packard Co. rallied $1.64, or almost 10 percent, to $17.95.
Gateway Inc. surged 74 cents, or 23 percent, to $4.00. International Business Machines Corp. rose $3.01, or more than 3 percent, to $83.41.
Web gear giant Cisco Systems Inc. advanced $1.08, or more than 9 percent, to $12.69 and topped the Nasdaq's most active list. About 84 percent of the Standard & Poor's 500 companies have reported their quarterly earnings so far. But a handful of key earnings reports are expected this week, including Cisco's results on Wednesday.
Semiconductor shares also surged. Global sales of semiconductor chips rose 8.2 percent in the third quarter from the second quarter and 21 percent from the weak year-ago period, showing that the chip industry's recovery has picked up, according to trade group Semiconductor Industry Association.
Chip leader Intel Corp. jumped 88 cents, or more than 4 percent, to $19.18. Communications chip maker PMC-Sierra Inc. surged $1.54, or more than 24 percent, to $7.83. Chip equipment maker KLA-Tencor Corp. rallied $1.93, or more than 5 percent, to $39.32. The Philadelphia Stock Exchange semiconductor index leaped 7 percent.
Hospital operator Tenet Healthcare Corp. rose $2.35, or more than 8 percent, to $28.85, bouncing back from steep losses last week and ranking as the most active on the Big Board.
Tenet said it had hired a consulting firm to review allegations that two physicians performed unnecessary surgery at a California hospital raided by federal agents last week. Neither of the independent heart doctors has been charged and the hospital has not been the target of the government's investigation.
UAL Corp. soared 82 cents, or more than 32 percent, to $3.38 after a weekend agreement by pilots to cut wages by $2.2 billion over 5-1/2 years and word from the airline's chief executive that wage-cut deals with other unions were expected soon.
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