NewsMine — economy — united-states — 2004 — 2004-jan-mar — Viewing Item

Nasdaq leads surging wallstreet Original Source Link: (May no longer be active)    http://www.business.scotsman.com/index.cfm?id=15812004 http://www.business.scotsman.com/index.cfm?id=15812004 Nasdaq leads surging Wall Street US INVESTORS returned in full force from the holidays yesterday to drive the Nasdaq to its highest level in nearly two years as software maker Siebel Systems forecast higher-than-expected profit for the fourth quarter. Investors’ hopes are high for a strong earnings season despite some worries that US shares may be overvalued. Aluminum heavyweight and Dow component Alcoa will mark the start of the quarterly earnings period when it releases its results on Thursday. Yesterday it traded up $1.08, or 2.8 per cent, to $38.63. Larry Wachtel, a market analyst at Wachovia Securities LLC, said: "That will be the driving force in the month of January - just how good the fourth-quarter earnings are. The pre-announcement season was so benign that you know the earnings are going to be good." The tech-laced Nasdaq Composite Index rallied 40.68 points, or 2.03 per cent, to 2,047.36, hitting its highest level since mid-January 2002. The blue-chip Dow Jones Industrial Average rose 134.22 points, or 1.29 per cent, to 10,544.07. The broad Standard & Poor’s 500 Index jumped 13.73 points, or 1.24 per cent, to 1,122.21. Chip shares helped lead the market higher after the World Semiconductor Trade Statistics group said that global sales of semiconductors surged to 16.1 billion in November, rising 25.7 per cent from a year ago and accelerating for the fourth straight month. The Philadelphia Stock Exchange semiconductor index shot up 3.6 per cent. Intel, the world’s largest maker of computer chips, rose 75 cents, or 2.3 per cent, to $32.91. Software company Siebel Systems sounded a bright note before the earnings rush. The company said fourth-quarter revenue and profit would surpass its previous forecast, helped by higher licence revenue. Siebel jumped $1.45, or 10.4 per cent, to $15.44. SG Cowen boosted its ratings on several technology names, including computer giant Dell, software maker Microsoft and chip equipment firm Applied Materials, to "strong buy" from "outperform". Dell rose 84 cents, or 2.5 per cent, to $35.14; Microsoft gained 65 cents, or 2.4 per cent, to $28.10 and Applied Materials advanced $1.37, or 6.2 per cent, to $23.47. Wall Street had more evidence of a strengthening economy early in the day with the news that construction spending advanced a surprisingly strong 1.2 per cent in November to a fresh record high, according to a US government report, as persistently low mortgage interest rates spurred an unprecedented rate of building. The forecast was for a gain of 0.5 per cent. • EUROPEAN shares reversed early losses to close at a fresh 16-month high as hopes for rising revenues boosted blue-chips such as SAP, Europe’s top software firm. SAP jumped 3.1 per cent after US peer Siebel Systems said higher licence revenues meant its fourth-quarter profit would beat its previous forecast. The FTSE Eurotop 300 index of pan-European blue chips closed 0.5 per cent firmer at 972.95, its highest close since August 2002. The narrower DJ Euro Stoxx 50 index rose 0.4 per cent to 2,808.1. Around Europe, Paris’s CAC-40 ended up 0.3 per cent, and Frankfurt’s DAX closed 0.4 per cent firmer. Zurich’s SMI Index, which was closed on Friday when other markets rose, gained 1.7 per cent to an 18-month high as heavyweight drug maker Novartis climbed 2.5 per cent. • ASIAN stock markets closed mostly higher, with prices rising in Tokyo on the first trading day of the year. Tokyo’s Nikkei Stock Average of 225 issues rose 148.53 points, or 1.39 per cent, to 10,825.17 after an abbreviated half-day of trade. Car stocks soared as investors piled into Honda and Toyota after the companies announced plans to take on the Big Three US automakers in the truck business. Nissan reported record-breaking profits and sales last year and unveiled bullish outlooks for 2004 despite worries about the stronger yen. Most other Asian markets extended the new year rally with South Korea’s KOSPI rising 0.4 per cent; Taiwan’s Weighted Price Index jumping 1.4 per cent; Hong Kong’s Hang Seng Index surging 1.2 per cent and the Singapore Straits Times Index climbing 1.4 per cent. Australia’s All Ordinaries Index eased 0.4 per cent. The Shanghai Composite jumped 1.9 per cent to 1,545 as investors applauded efforts to clean up China’s financial markets. The Shanghai Composite was the worst-performing market last year in Asia even as the Chinese economy boomed.

Adds fewer jobs than expected Blue chips in the red Bush says sending jobs overseas helps us { February 10 2004 } Data dispite bush rich label for small businesses Dollar hits 11 year low against pound Dollar plunges after us jobs data { March 5 2004 } Dollar slides as consumer data disappoint Dollar slips vs high yielders ahead of trade data Euro hits new high against dollar { February 18 2004 } Fed governor says inflation was too low Fed keeps rates steady calls for patience Gop cheers job increase { April 3 2004 } Greenback slides on lack of fed worries { January 6 2004 } Heineken warns weak dollar will hit profits Inventory levels low show wary business { March 12 2004 } Investors should worry about inflation risks Job growth stalls in february { March 5 2004 } Lack of new job deals blow to us economy { March 5 2004 } Levi strauss zips up last us plants { January 9 2004 } Manufacturing jobs replaced with mcdonalds Manufacturing news disappoints economists Misleading unemployment figures muddled job crisis Mutual fund 40bn inflows 2003 { February 5 2004 } Nasdaq leads surging wallstreet Ny fed warns of risks to us economy Reactions to fed rate left unchanged Real unemploytment rate higher argue economists Senator hollings discusses dangers sending jobs overseas { March 30 2004 } Sluggish job growth threatens recovery { February 10 2004 } States expect budget shortfalls Stocks slip oil prices a worry Treasuries surge as fed ackknowledges jobs gloom Us national debt tops 7trillion { February 18 2004 } Us stocks soar after 5 day tumble Files Listed: 34

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