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Dow gains 85
Bloomberg NewsNEW YORK -- The Dow Jones industrial average reversed a three-day losing streak today, as investors searched for bargain stocks in a market dogged by interest-rate worries.
The Dow Jones industrial average climbed 85.32, or 0.8 percent, to close at 10,304.84, erasing a 115-point loss earlier in the day.
But the Nasdaq composite index extended Friday's loss, dropping 29.62 to 4,382.12, as investors sold telecommunications and computer-related shares including Qualcomm Inc. and Cisco Systems Inc. on concern higher interest rates will crimp profit growth. The index fell 3 percent Friday.
(U.S. stock and bond markets were closed yesterday for Presidents Day.)
"People who own the high-fliers in the Nasdaq, such as the Ciscos and Intels, are beginning to say that if the Fed keeps raising rates, it will hinder growth of the economy, which influences earnings and the value of those stocks," said Alan Day, who helps oversee $4 billion at Stratevest Group in Burlington, Vt.
The Standard & Poor's 500 index gained 6.08 to close at 1,352.17. Almost three stocks fell for every two that rose on the New York Stock Exchange, with 1,362 advancers, 1,654 decliners and 476 unchanged. Volume on the NYSE totaled 976.87 million shares vs. 1.03 billion Friday.
The NYSE composite index gained 3.45 to 590.12; the American Stock Exchange composite index rose 2.50 to 934.46; but the Russell 2000 index slipped 4.73 to 540.95. The 30-year Treasury bond's price rose 1 point, or $10 per $1,000 face amount; its yield fell 7 basis points to 6.09 percent.