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Stocks rally
Nasdaq soars Associated PressNEW YORK -- Stocks moved sharply higher today as investors returned from a three-day weekend ready to look for bargains. Technology and telecom stocks led the gains. In midday trading on Wall Street, the Dow Jones industrial average was up 126.45 at 10,425.69. The Nasdaq composite was up 125.65 at 3,330.76, and the Standard & Poor's 500 index was up 21.28 at 1,399.30. The Russell 2000 index rose 9.07 to 466.44.
"Investors are in a buying mood," said Alan Skrainka, chief market strategist at Edward Jones of St. Louis. "At the close of trading last week, the Nasdaq was 37 percent off its record high, and many investors believe that there are bargains to be found."
Still, volume was light, suggesting that investors remain wary. Advancers led decliners by a 2-to-1 margin on the New York Stock Exchange, where volume came to a modest 363.02 million shares, just slightly ahead of Friday's sluggish pace.
The Treasury's 10-year note price was down 10/32 point, or $3.125 per $1,000 in face value, at midday; its yield rose to 6.37 percent from 6.32 percent as of Friday's early close in advance of the Memorial Day holiday. The 30-year bonds were down 15/32 point and yielded 6.09 percent, up from 6.05 percent on Friday.
Shares of high-tech industry leaders rose. Sun Microsystems rose $3.25 to $76.50 and Cisco Systems rose $2.188 to $57.125. Many high-profile technology stocks have been under pressure in recent weeks as investors have wondered whether their future earnings will justify their relatively high share prices.
Nasdaq soars
Associated Press
7.9 percentNEW YORK -- Wall Street's traditional summer rally began right on cue today, with the Dow Jones industrials and the Nasdaq composite index gaining more than 200 points apiece as investors returned from the Memorial Day weekend in search of bargains.
The Nasdaq composite rose 254.37 points, or 7.9 percent, to close at 3,459.48. It was the largest percentage gain ever for the index and the second largest point gain ever. The Dow Jones industrial average rose 228.89 points, or 2.2 percent, to close at 10,527.13. The Standard & Poor's 500 rose 44.43, or 3.2 percent, to 1,422.45.
Technology and telecommunications shares led the gains as investors sought out stocks that have been battered in the past few weeks. But volume was light, suggesting that investors remain wary.
Advancing issues outnumbered decliners by a better than 2-to-1 margin on the New York Stock Exchange, with 2,018 up, 920 down and 460 unchanged. NYSE volume totaled 839.15 million shares vs. 725.08 million Friday, the last trading day before the three-day weekend.
The Russell 2000 index of smaller companies rose 19.33 to 476.70; the NYSE composite index advanced 12.49 to 641.38; and the American Stock Exchange composite index climbed 16.44 to 897.85.
"Will the rally stick? I wish I could say yes, but with this surprisingly low volume, I'm not sure it will be extended through the rest of the week," said Robert H. Stovall, market analyst at Prudential Securities.
"Investors are in a buying mood," said Alan Skrainka, chief market strategist at Edward Jones of St. Louis. "At the close of trading last week, the Nasdaq was 37 percent off its record high, and many investors believe that there are bargains to be found."
The Treasury's 30-year bond price fell 14/32 point, or 4.37 per $1,000 in face value; its yield rose to 6.10 percent from 6.06 percent Friday. The two-year note fell 3/32, or 94 cents per $1,000 face amount; its yield rose 6 basis points to 6.73 percent, the biggest increase in 2 weeks.
The yield on the 10-year note rose 5 basis points to 6.37 percent, as its price fell 11/32 point.