Dow posts another late triple-digit rally
NEW YORK » Wall Street had its second-straight late-day rally yesterday, again propelling the Dow Jones industrials up more than 100 points after solid readings on corporate earnings and the job market calmed some of investors' anxiety about a tight credit market.
Trading was volatile again, but not to the extreme seen over the past week. The Dow and the Nasdaq composite mostly stayed in positive territory for much of the session.
Profits from companies like Nokia Corp. came in better than expected, and the U.S. Labor Department said jobless claims rose last week by a slightly smaller number than economists predicted. The numbers all helped steady a market that has seen stability in short supply.
Analysts said the jobless report in particular helped stocks, as it indicated that the labor market is holding up. The figures were released a day before the government's highly anticipated July employment report, to be issued before the start of trading tomorrow.
"Something that has kept consumers spending is that unemployment is very low," said Janna Sampson, director of portfolio management at Oakbrook Investments. "Even if they're being pinched a little bit by oil prices or the inability to borrow, people will spend if they have a job. If we see employment weakening, that's really, really negative."
But with the market jumpy about rising mortgage defaults leading to losses and tougher lending standards, it was impossible to tell whether the market's two-day advance, which has lifted the Dow 250 points, will stick. In the latest indication that the lending climate is still deteriorating, Accredited Home Lenders Holding Co., a nonbank mortgage lender, said in a filing yesterday its business is in jeopardy, and its stock plummeted 41 percent.
The Dow rose 100.96, or 0.76, to 13,463.33. The Standard & Poor's 500 index picked up 6.39, or 0.44 percent, closing at 1,472.20, while the Nasdaq composite index rose 22.11, or 0.87 percent, to 2,575.98.
Bonds were little changed, with the yield on the benchmark 10-year Treasury note at 4.79 percent, the same as late Wednesday.
Crude oil futures rose 33 cents to $76.86 a barrel on the New York Mercantile Exchange. Crude is still trading below Tuesday's record close of $78.21.
Gold prices rose.
Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where consolidated volume came to 4.18 billion shares, compared to 4.93 billion on Wednesday.
The Russell 2000 index of smaller companies rose 6.07, or 0.78 percent, to 783.99.
The blue chip index, now about 4 percent below the record close it reached in early July, has seen triple-digit swings become the norm in recent weeks.
Another reason for the market's volatility is that the Dow rose to the 14,000 mark so quickly, said Jack A. Ablin, chief investment officer at Harris Private Bank.
The dollar was mixed against other major currencies, after the European Central Bank and the Bank of England kept their key interest rates steady yesterday.