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Dow up 147.79
Associated PressNEW YORK -- Stocks surged higher today as investors, emboldened by Federal Reserve Board Chairman Alan Greenspan's encouraging remarks on the economy, poured back into the markets after two days of losses.
The Dow Jones industrial average closed up 147.79 at 10,843.87. The Nasdaq composite index erased all of yesterday's losses, rising 128.93 to close at 4,184.56. The Standard & Poor's 500 index closed up 13.51 at 1,495.47.
Advancers outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange, with 1,698 up, 1,138 down and 513 unchanged. Volume came to 1.06 billion shares, ahead of yesterday's pace of 909.24 million. The NYSE composite index gained 3.24 to 660.19, the American Stock Exchange composite index rose 2.62 to 939.78 and the Russell 2000 index was up 6.89 at 534.75. The 30-year Treasury bond climbed 1 15/32 to 106 6/32, with its yield falling to 5.81 percent.
Greenspan, in much anticipated testimony before a Senate committee, said the economy is showing signs of slowing. Banking stocks jumped on the belief that stable interest rates will help lubricate the lending industry. J.P. Morgan & Co. led the way, rising $4.50 to $134.50.
Tech stocks also saw big gains, led by fiber-optics company SDL Inc., up $68.44 to $428.06. The company is being acquired by parts maker JDS Uniphase Corp., which is being added to the S&P 500. One tech firm missed the wave of optimism, however. Shares of Lucent Technologies Inc. fell $10.37 to $54.25 after warning that profits for the next two quarters will be lower then previously expected.