NEW YORK -- Investors bid technology issues higher for a second straight session today despite worries about tech bellwether Cisco Systems. Blue chips rallied modestly late in the day, ending a four-day losing streak. Analysts said the advances could be an indication that market conditions are improving, but they said the reaction to the Yahoo! and Motorola results, due out later today, would be a better test.
Dow gains 32
"The Dow and the Nasdaq both put on a nice little rally late in the day," said Arthur Hogan, chief market analyst at Jefferies & Co. "I think folks are starting to get in their heads that we may have found a bottom here, so we have a lot of bargain hunters coming in. But it's hard to know for sure."
The Dow Jones industrial average closed up 31.72 at 10,604.27, after spending most of the day in negative territory. The Nasdaq composite index, more heavily weighted in technology, rose 82.88, or 3.4 percent, to 2,524.18. The Standard & Poor's 500 index gained 12.47 to reach 1,313.27.
Advancers led decliners nearly 2 to 1 on the New York Stock Exchange, with 1,863 up, 1,057 down and 366 unchanged. Volume came to 1.29 billion shares, compared with 1.2 billion yesterday.
The NYSE composite index gained 4.50 to 643.33; the American Stock Exchange composite index rose 13.27 to 881.27; and the Russell 2000 index advanced 11.50 to 475.45 points.
The 10-year Treasury note's price was down 23/32 point, or $7.19 per $1,000 in face value; its yield rose to 5.09 percent from 4.98 percent late yesterday. The 30-year bonds were down 1 point and yielded 5.49 percent, up from 5.43 percent late yesterday.
Analysts said investors were buying tentatively after a five-month fire sale in technology and some blue chip stocks. Earnings remained a focus, particularly for high-tech stocks that some consider to be trading at too high prices.