Dow jumps 109;Associated Press
Nasdaq surges 129
NEW YORK - Intel Corp. drove the Dow Jones industrial average and the Nasdaq composite sharply higher today as investors rewarded the company for its strong growth prospects. But while the market averages rose, there were notable pockets of weakness. A bastion of the old economy, Dow component Honeywell International Inc., became the latest big name to warn that its second-quarter earnings will miss expectations, and its stock fell $7.50 to $41.
The Dow average rose 108.54 to close at 10,557.84. Broader stock indicators were also higher. The Standard & Poor's 500 index was up 21.54 at 1,486.00, and the Nasdaq composite index was up 129.27 at 3,989.83. Advancers outnumbered decliners by a 5-to-4 margin on the New York Stock Exchange, with 1,498 up, 1,362 down and 514 unchanged. Volume was 920.23 million shares, well behind Friday's 1.21 billion shares.
The NYSE composite index gained 4.67 to 654.35, the American Stock Exchange composite index fell 1.62 to 934.27 and the Russell 2000 index of smaller stocks jumped 9.05 to 522.79. The Treasury's 30-year bond yield rose 3 basis points to 5.90 percent while its price dropped 10/32 to 105 1/32.
Intel rose $10.44 to $136.50, accounting for more than half of the Dow's gains. The firm said it will invest $2 billion in a new plant in Ireland. Lehman Brothers analyst Dan Niles said Intel's stock price should hit $175 within 12 months. On the Nasdaq, Rambus rose $7.87 to $91.25 after signing a deal last week to license memory technology to Toshiba Corp.