Improved consumer
confidence report
boosts stocks

The Dow rises 260 and
the Nasdaq jumps 54

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Associated Press

NEW YORK -- A better-than-expected consumer confidence report sent stocks climbing today on hopes that Americans' spending could revive company profits earlier than expected. The Dow Jones industrials picked up 260 points, their third straight triple-digit gain.

But analysts were less than enthusiastic about the consumer confidence gain and the market's response. They predicted more market convulsions because other data isn't as rosy and the broader outlook remains confusing.

They also said the confidence number won't help move the Federal Reserve toward an interest rate cut before its next meeting in May -- a step many on Wall Street are seeking.

The Dow rose 260.01 to 9,947.54, a 2.7 percent gain. The Dow has now risen 558.06 over three sessions, making back more than a third of the 1,468 points the blue chips tumbled during 10 tumultuous trading days that ended last Thursday.

The Nasdaq composite index was up 53.75 at 1,972.24, a 2.8 percent increase, while the Standard & Poor's 500 index rose 29.48 to 1,182.17, a 2.6 percent increase. Advancers led decliners 3 to 2 on the New York Stock Exchange, with 1,939 up, 1,140 down and 220 unchanged. The NYSE composite index rose 12.68 to 599.69, the American Stock Exchange composite index climbed 8.49 to 875.96 and the Russell 2000 index gained 5.50 to 452.88. Volume was 996.16 million shares vs. 69.64 million yesterday.

The Treasury's 10-year note was down 13/32 to 99-29/32; its yield rose 14 basis points to 5.01 percent. The 30-year bond fell 1-13/32 to 98-3/4; its yield rose 10/32 to 5.46 percent.

"We're continuing to bounce back from the low trading levels we saw last week," said Robert Harrington, head of listed trading at UBS Warburg. "The question now is of sustainability. When do earnings start to improve? Will it be a third- or fourth-quarter story?"

The market rose after the Conference Board reported its Consumer Confidence Index shot up to 117 from a revised 109.2 in February. Analysts were expecting a drop to 104.1. The group said the rebound was triggered by optimism about the economic outlook and employment prospects over the next six months. "A better consumer confidence number leaves more hope that the profit picture might turn in a more favorable direction," said Michael Strauss, managing director and senior economist at Commonfund.

In another report, the Commerce Department said orders to U.S. factories for big-ticket manufactured goods fell in February for the second straight month, led by a drop in demand for cars, planes and other transportation equipment.