NEW YORK >> Wall Street posted a seventh straight day of gains yesterday as investors remained hopeful that the U.S.-led war with Iraq will be quick and successful. Still, the advance was limited as the market anxiously awaited the latest developments. Markets tentative
as Iraq war beginsBy Hope Yen
Associated PressStocks came back from a sharp early decline that threatened stocks' best winning streak in nearly three years. But analysts said worries about the war had chilled the momentum that sent the Dow Jones industrials up 741 points in the previous six sessions.
"Investors are definitely trying to figure out how all this news is coming out," said Peter Dunay, chief market strategist at Wall Street Access, a New York-based brokerage firm. "We had such a big run-up that people were scared we got ahead of ourselves."
"But it seems the U.S. ground forces have moved in without too much resistance," he added. "Most people are interpreting the news to mean things are going pretty well."
The Dow closed up 21.15, or 0.3 percent, at 8,286.60, after having been off 134 earlier in the session. Going into today's trading, the blue chips had their longest winning streak since August 2000, when they notched seven straight days of gains.
The broader market also shook off early losses and moved higher. The Nasdaq composite index gained 5.69, or 0.4 percent, to 1,402.76. The Standard & Poor's 500 index rose 1.82, or 0.2 percent, to 875.84.
Advancing issues outnumbered decliners more than 4 to 3 on the NYSE. Volume was moderate.
The Russell 2000 index, which tracks smaller company stocks, rose 1.98, or 0.5 percent, to 370.49.
The New York Stock Exchange and Nasdaq Stock Market observed two minutes of silence to honor U.S. troops fighting abroad.
Investors re expected to trade in the next days on minute-by-minute developments overseas. Stocks have surged in the past week on anticipation of a quick war, but could see declines should the conflict show signs of becoming prolonged.
Indeed, the Dow recovered today after the United States launched its ground attack and after reports Saddam may have been wounded in yesterday's strike.
"The market will gyrate to the latest events -- good or bad. I think it will be amazing how the market dovetails to the news coming out of Iraq," said Stephen Massocca, president of Pacific Growth Equities. "A quick victory is good. Anything that bogs it down would be bad."
A pair of mixed reports on jobless claims and economic activity, meanwhile, had little discernible effect on investors.
The Labor Department reported new claims for unemployment insurance dipped by a seasonally adjusted 4,000 to 421,000 for the week ending March 15. Still, the level was higher than analysts' forecasts.
Viacom increased $1.94 to $40.84 after the media company announced a new contract with president and chief operating officer Mel Karmazin that will keep him for three more years.
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