NEW YORK >> Buyers swooped back into the stock market late in today's session, reversing a sharp decline as the passage of anti-terrorist legislation and a government stimulus package raised hopes for an economic recovery. Stocks rebound in late rally
Associated Press
The late turnaround began in semiconductor shares and the energy sector, where a strong earnings report from Williams Cos. triggered a rally, but the buying soon spread to other areas of the market.
According to preliminary calculations, the Dow Jones industrial average closed up 117.28 at 9,462.90, erasing an earlier deficit of 167 points. The Nasdaq composite index rose 43.93 at 1,775.47 and the Standard & Poor's 500 index was up 14.89 at 1,100.09.
The Russell 2000 index, the barometer of smaller company stocks, rose 7.12 to 434.77. The NYSE composite index rose 5.88 to 562.96. The American Stock Exchange composite index rose 5.08 to 828.65.
Advancing issues outnumbered declining ones by a 9-to-7 margin on the New York Stock Exchange, with 1,914 rising, 1,202 falling and 213 unchanged. Volume came to 1.59 billion shares.
The price of the U.S. Treasury's 10-year note gained 12/32 to 103 18/32 while its yield fell 5 basis points to 4.545. The price of the 30-year note rose 21/32 to 101 6/32; its yield fell 5 basis points to 5.293.
Prices had already started to recover by midafternoon when news came that the Senate had approved a package of anti-terrorism laws by a vote of 98-1. The bill, which Bush is expected to sign into law soon, gives police new and expanded powers to track suspected terrorists.
That news combined with the passage late Wednesday in the House of a $100 billion economic stimulus package led to a turnaround in investor sentiment, which had soured in the morning following the release of several poor economic indicators.
Even in the morning, some sectors were holding their own despite the poor economic readings on durable goods orders, unemployment, and existing home sales.
Energy shares headed higher after The Williams Cos. surpassed analysts' estimates for the third quarter and raised its forecasts for full-year earnings for 2001 and 2002. Williams' shares were up $1.70 to $27.60 and brought other energy shares higher as well.