NEW YORK >> Wall Street showed more signs of strength today with stocks rallying sharply on earnings reports that at best were satisfactory, not stellar. The Dow Jones industrials soared 172 points, shaking off a report indicating the economy needs more time to recover. Wall St. shakes off
warnings, bad earningsBy Amy Baldwin
Associated PressAnalysts said investors are willing to look past poor profits and place bets that business will improve next year.
"People are more concerned at the moment about missing out on the market's next move up than suffering the next big decline," said Richard A. Dickson, a technical analyst at Hilliard Lyons in Louisville, Ky.
Despite today's buying spree, there were signs that investors are still somewhat cautious while becoming more bullish. Trading volume was lighter than normal, an indication that some players were sitting out the session.
The Dow closed up 172.92, or 1.9 percent, at 9,377.03. The Dow easily claimed its biggest point gain since companies began release third-quarter earnings in earnest last week. The Nasdaq composite index rose 36.78, or 2.2 percent, to 1,708.09. The Standard & Poor's 500 index gained 16.42, or 1.5 percent, to 1,089.90.
Advancers outnumbered decliners nearly 3 to 2 on the New York Stock Exchange, with 1,841 up, 1,268 down and 207 unchanged. Volume was 1.09 billion shares vs. 1.27 billion on Friday. The New York Stock Exchange composite index gained 7.13 to 561.45, the American Stock Exchange composite index advanced 9.73 to 823.03 and the Russell 2000 index rose 4.80 to 430.50.
The Treasury's 2-year note fell 1/32 to 99 - 30/32; its yield rose 2 basis points to 2.77 percent. The 10-year note fell 1/8 to 10226/32; its yield rose 2 basis points to 4.64 percent. The 30-year bond fell 10/32 to 99 - 30/32; its yield rose 2 basis points to 5.38 percent.
A key gauge of future U.S. economic activity offered little reason for optimism but didn't thwart the market's advance. Economic activity declined 0.5 percent last month, as the Sept. 11 terrorist attacks in New York and Washington weakened an already sagging economy, according to the New York-based Conference Board's Index of Leading Economic Indicators.
Winners included companies that beat earnings forecasts. Toymaker Hasbro advanced 86 cents to $17.67 after surpassing estimates by 5 cents a share.
Dow industrial 3M surged $5.22 to $107.39 after beating third-quarter earnings estimates by a penny a share but being cautious about the fourth quarter. The maker of Scotch tape said it expects to earn 95 cents to $1.05 a share the final three months of the year; the market expected $1.05.