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NEW YORK -- The lure of cheaper technology stocks brought buyers back to Wall Street today, sending the Nasdaq composite index higher but punishing the Dow industrials. Dow falls 48.8
Associated Press
Although still mindful of the slowing economy and slumping earnings, investors focused on the future and, at least temporarily, appeared to have faith in a sector that has been dropping since Labor Day.
"We are finally reaching the point where enough of the bad news about earnings and the economy has been baked in. We expect the market to do better from here," said Charles White, portfolio manager for Avatar Associates. "The Fed also has firmly put itself on the side of the bulls."
The Nasdaq composite index closed up 45.38, or 1.9 percent, at 2,441.30. The Dow fell 48.80 to 10,572.55, its losses curbed by its tech components, including Microsoft. The Standard & Poor's 500 index advanced slightly, rising 4.94 to 1,300.80.
Advancers narrowly beat decliners on the New York Stock Exchange, with 1,622 up, 1,285 down and 404 unchanged. Volume was 1.19 billion, compared with 1.1 billion yesterday.
The NYSE composite index slipped 0.40 to 638.83; the American Stock Exchange composite index rose 1.25 to 868.00; and the Russell 2000 index gained 2.31 to 463.95.
The 10-year Treasury note's price was down 1/4 point, or $2.50 per $1,000 in face value; its yield rose to 4.99 percent from 4.96 percent late yesterday. Prices and yields move in opposite directions. The 30-year bonds were down 9/31 point and yielded 5.43 percent from 5.45 percent late yesterday.
Wall Street analysts have been saying stocks could have a more extended rally if the market could withstand companies' disappointing sales and earnings reports.
That was the case today when tech and telecommunications stocks continued their advance even after Nokia reported it sold 128 million cell phones last year, missing analysts' expectations by 12 million.
Nokia's stock plunged nearly 9 percent, falling $3.81 to $39.31.