NewsMine — economy — united-states — 2003 — 2003-sept-oct — Viewing Item

Stocks at 14 month high { September 2 2003 } Original Source Link: (May no longer be active)    http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20030902&ID=2834725 http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20030902&ID=2834725 Stocks at 14-Month Highs on Economy Hopes September 02, 2003 5:05:00 PM ET By Rachel Cohen NEW YORK (Reuters) - Stocks surged through 14-month highs on Tuesday, as investors found more evidence of a U.S. economic recovery in a report on factory activity, and a wave of technical buying was triggered by new index highs. The tech-laden Nasdaq hit a 17-month peak and the blue-chip Dow and broader S&P 500 both climbed to 14-month highs as Wall Street traders returned from the long Labor Day holiday that traditionally marks the end of summer. ``This is money being put to work in front of a good backdrop for stocks, because the economic picture is getting clearer and better all the time,'' said Brian Pears, head of equity trading at Victory Capital Management. The Institute for Supply Management released broadly positive data on manufacturing activity but its reading on factory jobs showed employment levels were falling. The Dow also passed a technical milestone, spurring buying of its futures after it hit the 9,500 level in mid-afternoon, said Jeff Swensen, senior trader at John Hancock Funds. ``Technically we've broken through some resistance levels and that sort of encourages more bullish sentiment in the market ... once the market reaches a certain level, then it triggers more buying,'' Swensen said. The Dow Jones industrial average rose 107.45 points, or 1.14 percent, to 9,523.27. The broader Standard & Poor's 500 Index was up 13.98 points, or 1.39 percent, at 1,021.99. The technology-laced Nasdaq Composite Index added 31.03 points, or 1.71 percent, to 1,841.48. The Nasdaq closed at its highest level since April 1, 2002, and the S&P 500 hit its highest close since June 18, 2002. The Dow hit its highest close since June 19, 2002. WIN STREAKS The S&P 500 was up for the sixth session in a row and the Nasdaq, its fifth. The Dow notched its third up session. The market, spurred by investors' expectations that the economy is strengthening, has surged since hitting its lows for the year on March 11. Trading was active with 1.44 billion shares changing hands on the New York Stock Exchange and 1.77 billion shares traded on the Nasdaq. Advancers outnumbered decliners by nearly 8 to 3 on the NYSE and more than 11 to 5 on Nasdaq. A report from the Semiconductor Industry Association said on Tuesday that global sales of semiconductors rose 2.9 percent in July from June and 10.5 percent from a year ago, pointing toward a stronger recovery from the industry's worst-ever downturn. Tech stocks also got a boost from brokerage Goldman Sachs, which said on Tuesday it raised its view of the U.S. software sector to ``attractive'' from ``neutral'' as conditions are showing signs of improvement. Goldman also said on Tuesday it raised its view of the enterprise hardware sector to ``neutral'' from ``cautious.'' Crude oil futures fell more than 6 percent, going below $30 for the first time since July, after the Labor Day holiday that signals the end of the summer driving season. Stock investors generally welcome lower fuel prices, which lower companies' costs. ISM REPORT The Institute for Supply Management said its gauge of manufacturing activity was 54.7 for August, up from 51.8 in July and above economists' average forecast of 53.8, according to a Reuters poll. A reading above 50 indicates a growing factory sector. The report also showed factories still shedding workers as the sector struggles to compete with cheaper producers abroad, notably in China and India -- what many economists believe is a long-term challenge for U.S. industry. The employment reading fell to 45.9 from 46.1, ISM said. However, U.S. employers announced fewer job cuts in August, according to a separate report released by job placement firm Challenger, Gray & Christmas. But companies are still a long way from hiring new workers, the report added. Among stocks actively traded, General Electric Co. (GE) shares were up 87 cents, or 2.9 percent, to $30.44, as Vivendi Universal (V) said it would merge its entertainment assets with GE's NBC. Vivendi shares jumped $1.37, or 8.1 percent, to $18.27. Shares of computer maker Dell Inc. (DELL) rose 97 cents, or about 3 percent, to $33.59 after being upgraded by Goldman Sachs. © 2003 Reuters

2 years in a row more in poverty Asian debt withdrawal threat to us deficit { September 7 2003 } Asian unpegging crucify us { October 3 2003 } Bush bid weaken dollar against asia { September 24 2003 } Bush cuts schools highways { September 10 2003 } Bush priorities under scrutiny Bush takes credit economic upturn { September 1 2003 } China brings us export resictions into trade debate Deficit not manageable { September 18 2003 } Deflation still worries federal reserve { September 17 2003 } Deflation will continue for years { September 10 2003 } Disappointed earnings bonds rally Dollar gains on euro { September 2 2003 } Dollar over valued { September 18 2003 } Dollar plunges 3 year low Dollar tumbles low against euro { October 8 2003 } Economy expands fastest since 1984 no jobs { October 31 2003 } Fed holds rates warns on deflation Firms dont buy rebound Firms still slashing jobs Foreign investors fear weak dollar { September 22 2003 } Gold hits 7 year high { September 25 2003 } Gold records as tumbling dollar { September 10 2003 } Government claims unemployment stabilizing { October 3 2003 } Grocery workers 3rd day strike san diego { October 14 2003 } Job loss like great depression Jobless claims lowest eight months { October 9 2003 } La transit strike may strand 500 thousand { October 14 2003 } Mass august layoffs { September 26 2003 } Monthly costs iraq approach vietnam Poor gained 1 3m in 2002 { September 3 2003 } States risk big losses bond funding pensions { October 12 2003 } Stocks at 14 month high { September 2 2003 } Stocks fall economy worries { September 30 2003 } Stocks lower after production data Stocks rebound hopes intact { October 1 2003 } Stocks rise on upbeat analyst reports { September 8 2003 } Stocks slip bonds rise Trade gap bring down dollar warns imf { September 19 2003 } Trade gap could bring down dollar { September 19 2003 } Uninsured increases 2 4 million last year { September 30 2003 } Us bonds face gloomier future as selling continues { September 7 2003 } Us closes last levis manufacturer { September 26 2003 } Us losing millions manufacturing jobs { September 4 2003 } Weak dollar raises stocks Files Listed: 45

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