Advertisement - Click to support our sponsors.
NEW YORK -- Blue chip and high-tech stocks rose today, reversing some of last week's losses despite continuing concerns about the weakening economy and its impact on corporate profits. The Dow Jones industrial average closed up 165.32, or 1.5 percent, at 10,946.77. Dow gains 165
Associated Press
The Nasdaq composite index recovered from early losses and was up 18.66 at 2,489.63, while the Standard & Poor's 500 index rose 15.55 to 1,330.31.
Advancers beat losers by about 3 to 2 on the New York Stock Exchange, with 1,942 up, 1,135 and 197 unchanged. Volume came to 1.01 billion shares, down from 1.05 billion on Friday. The NYSE composite index rose 7.71 to 660.99; the American Stock Exchange composite index climbed 6.47 to 937.70; and the Russell 2000 index rose 8.30 to 505.35.
The 10-year Treasury note's price was down 4/32 point, or $1.25 cents per $1,000 in face value; its yield rose to 5.05 percent from 5.02 percent late Friday. The 30-year bonds were down 14/32 point and yielded 5.42 percent, up from 5.38 percent late Friday.
Ronald J. Hill, an investment strategist at Brown Brothers Harriman & Co. in New York, called the advance a "nice rebound" and said he thought there was some buying ahead of testimony by Federal Reserve Board Chairman Alan Greenspan tomorrow.
Greenspan is to give his biannual assessment of the state of the economy before the Senate Banking, Housing and Urban Affairs Committee.
"My sense is that he's going to stress that the economy needs more help to reaccelerate, setting the stage for additional rate reductions," Hill said. "That's the most important thing investors need to know."
The Fed has twice lowered interest rates a half a percentage point this year, and further easing is anticipated. Most economists expect the rate reductions to boost economic growth in the second half of the year.