NEW YORK >> Prices rose sharply on Wall Street today as investors, having taken profits and digested more earnings reports, began feeling more secure about the market's prospects. But even amid their growing optimism, investors mostly bought safer blue chips. Stocks rise amid
uncertaintyBy Adam Geller
Associated PressThe Dow Jones industrial average closed up 170.86 at 10,625.20, breaking out of a narrow trading range in midafternoon.
The market's broader stock indicators also finished higher. The Nasdaq composite index advanced 43.20 to 2,059.81, and the Standard & Poor's 500 climbed 19.28 to 1,228.75.
Advancers led decliners on the New York Stock Exchange, with 2,068 up, 991 down and 216 unchanged. Volume was 1.2 billion, down from 1.4 billion yesterday. The NYSE composite index rose 9.53 to 623.50, the American Stock Exchange composite index gained 20.70 to 923.57 and the Russell 2000 index rose 10.38 to 472.73.
"There's no particular reason," said Gary Kaltbaum, market technician at Investor's Edge Partners. "The market does want to start pushing itself higher. ... We are looking in pretty good shape here."
With no negative earnings news upsetting them today, investors were more inclined to buy than they were earlier this week, when companies including Compaq Computer and Kimberly-Clark announced disappointing results. The market also seemed to be moving away from the profit-taking that naturally followed the big two-week rally that ended Friday.
However, analysts said the market will remain concerned about how long it will take before profits take off again.
"People still worry more about the outcome of any remaining first-quarter reports that have yet to come out and worry about second- and third-quarter results ahead of us," said Richard McCabe, chief market analyst at Merrill Lynch & Co.
"The evidence still needs to mount that the economy is out of the woods and that a year from now the earnings picture will be better," said Joe Battipaglia, chief investment strategist for Gruntal & Co.
Advancers included companies that posted better-than-expected profits. Bristol-Myers Squibb climbed $1.95 to $56.85 on healthy first-quarter earnings that were boosted by prescription drug sales. Decliners included JDS Uniphase, down 45 cents at $20.37. JDS announced yesterday it would lay off 20 percent of its work force and close several operations.