Tech stocks lead
upward charge

NEW YORK >> Successful elections in Iraq and a bevy of merger and acquisition deals pushed stocks higher yesterday in moderately heavy trading, with beaten-down tech stocks enjoying the largest gains.

The success of the Iraqi elections despite attacks on 38 of the nation's polling centers, along with OPEC's decision to maintain current oil production levels, removed a pair of obstacles that had prevented many investors from getting into the market. The news out of the Middle East failed to halt rising oil prices, however, with a barrel of light crude settling at $48.20, up $1.02, on the New York Mercantile Exchange.

The flurry of new deals, meanwhile, showed corporate America's confidence in the economy, which further cheered Wall Street. Among the deals announced yesterday, Metlife Inc. said it would purchase Citigroup Inc.'s Travelers Life & Annuity division for $11.5 billion.

The Dow Jones industrial average closed up 62.74, or 0.6 percent, to 10,489.94.

Broader stock indicators rose substantially. The Standard & Poor's 500 index was up 9.91, or 0.85 percent, at 1,181.27, and the Nasdaq composite index gained 26.58, or 1.31 percent, to 2,062.41.

Monday's move higher was actually less than many analysts had expected, given the success in Iraq and the wave of merger deals. But a handful of issues remain for Wall Street in the week ahead, including the Federal Reserve's decision on the nation's benchmark interest rate, due tomorrow, and Friday's job creation report from the Labor Department. By the end of the week, investors are likely to have a very clear picture of the economy and can invest with more confidence, analysts said.

"It's an extremely important, even critical, week for the markets," said Hugh Johnson, chief investment officer at First Albany Corp. "This week will set the tone for February and March."

While Wall Street ended January on a high note, the overall month was very disappointing, coming on the heels of strong gains in November and December. Anxiety over interest rates, inflation, oil prices and Iraq pressured stocks and kept many investors on the sidelines. For the month, the Dow fell 2.72 percent, the S&P 500 dropped 2.53 percent, and the Nasdaq slumped 5.2 percent.

In economic news, personal incomes rose by 3.7 percent in December, according to the Commerce Department, up from 0.4 percent in November. Much of that gain was attributed to Microsoft Corp.'s special $3-per-share dividend paid out Dec. 2, which pumped $32 billion into the economy.