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

Stocks rebound hopes intact { October 1 2003 } Original Source Link: (May no longer be active)    http://asia.reuters.com/newsArticle.jhtml?type=businessNews&storyID=3542774 http://asia.reuters.com/newsArticle.jhtml?type=businessNews&storyID=3542774 Stocks Rebound; Recovery Hopes Intact Wed October 1, 2003 04:51 PM ET By Elizabeth Lazarowitz NEW YORK (Reuters) - Stocks jumped on Wednesday as investors bought shares beaten down in the prior session and reacted to a report showing the manufacturing sector continued to expand. The Dow Jones average and the Standard & Poor's 500 index posted their biggest one-day gains since June. Manufacturing growth expanded for the third straight month in September, although the pace slowed, according to the Institute for Supply Management. The group's manufacturing index dipped to 53.7 from 54.7 in August. While the index fell short of a consensus forecast of 55.0 in a poll taken last week, many economists had scrambled to cut their estimates after Tuesday's weak report on manufacturing in the Chicago area. "A lot of people were concerned that the (ISM) number was going to be a disaster. It showed that things were slowing, but I don't think it points to some people's worst fears," said Stephen Massocca, head of trading at investment bank Pacific Growth Equities. "We're probably getting a natural technical bounce off the decline we've had over the last six or seven days," Massocca added. The technology-laced Nasdaq Composite Index .IXIC rose 45.31 points, or 2.54 percent, at 1,832.25 after losing more than 2 percent on Tuesday. The blue-chip Dow Jones industrial average .DJI jumped 194.14 points, or 2.09 percent, to 9,469.20 after sinking more than 1 percent a day earlier. The broad Standard & Poor's 500 Index .SPX gained 22.24 points, or 2.23 percent, to 1,018.21. Investors were also taking advantage of a recent slide in stock prices that has dragged major market gauges to 1-month lows to put money to work on the first day of the fourth quarter, traders said. "We've had a pretty good sell-off for the last week and a half," said Evan Olsen, head of equity trading at Stephens Inc. "I kind of characterize it as a relief rally." Vaccine developer VaxGen Inc. VXGN.O jumped 58 cents, or 5 percent, to $12.65. The company said it was awarded an $80.3 million contract from the National Institutes of Health for development of an experimental anthrax vaccine. Eli Lilly and Co. LLY.N jumped $3.61, or 6 percent, to $63.01. The company said on Wednesday it received a second notice from U.S. regulators that its experimental depression drug, Cymbalta, would be approved if the company satisfied certain conditions. Palm Inc. PALM.O , the world's top maker of handheld computers, rose $1.24, or 6 percent, to $20.57. The company said corporate demand for handheld products was beginning to recover after an industrywide 2-year slump. LaBranche & Co. LAB.N , the No. 1 share dealer on the New York Stock Exchange, fell $1.23, or 8 percent, to $13.37. The company said its third-quarter profit could be more than 80 percent below Wall Street expectations, citing a steep drop in trading volume for its own account due to low market volatility. Shares of Clear Channel Communications Inc. CCU.N jumped $2.01, or 5 percent, to $40.31, a day after the top U.S. radio station group said it was on track to meet its third-quarter cash flow target. Diversified manufacturer 3M Co. MMM.N , bolstered the Dow index with a gain of $1.83 to $70.90 after it said on Tuesday that some sales growth in its existing businesses is starting to offset some economically sensitive businesses. AUTO SHARES Wednesday was a mixed day for auto dealers and their shares. General Motors Corp. GM.N said its September U.S. sales were up 12 percent over the same month a year ago. Ford Motor Co.'s F.N U.S. sales were down 0.5 percent, while DaimlerChrysler AG's Chrysler arm DCX.N DCXGn.DE said its sales slumped 15 percent. Sales of cars and light trucks were up 2.1 percent from September 2002, good for a seasonally adjusted annual rate of 16.7 million. That's well below the 19 million annual rate hit in August but better than the 16.2 million rate from September 2002, which followed a similar August boom. GM shares ended slightly lower, but Ford and Chrysler shares moved higher. However, the Big Three all said they would be offering enhanced incentive programs, which made auto dealers and auto supply stocks smile Wednesday. The sales news may have helped some auto dealership groups such as UnitedAuto Group Inc., UAG.N Sonic Automotive Inc. SAH.N and Lithia Motors, LAD.N all of whom had stock prices increases of more than 10 percent on Wednesday. (Additional reporting by Justin Hyde in Detroit)

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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