Dow up 57.63Associated Press
NEW YORK - Stocks rose today as investors seized on a weaker-than-expected retail sales report as evidence that the economy is slowing just enough to persuade the Federal Reserve to leave interest rates unchanged at its June 27-28 meeting.
Investors' optimism over the state of the economy helped the market break out of a slump that started after Wall Street investment firm Sanford Bernstein cut its rating and earnings estimates for Hewlett-Packard Co., which sank $7 to $119.
The Dow Jones industrial average rose 57.63 to close at 10,621.84. The Standard & Poor's 500 index was up 23.44 at 1,469.44 and the Nasdaq composite index climbed 83.15 to 3,851.06.
Advancers outnumbered decliners 1,740 to 1,186 with 471 unchanged on the New York Stock Exchange. Volume was 914.12 million shares vs. 755.75 million yesterday. The NYSE composite index rose 6.85 to 653.63, the American Stock Exchange composite index gained 4.08 to 946.55 and the Russell 2000 index of smaller companies rose 5.24 to 513.75.
The 30-year Treasury bond fell 1-1/2 point, or $11.25 per $1,000 face amount. Its yield rose 8 basis points to 5.95 percent.
In a session that saw the market struggle to find direction, stocks rose after Fed Chairman Alan Greenspan applauded the use of technology to enhance the productivity of American workers.
In remarks before the New York Association for Business Economics, Greenspan said much of the improvement in productivity was due to basic changes in the economy, rather than temporary factors that could disappear.