Stocks get new life
as jobless rate falls

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By Eileen Alt Powell
Associated Press

NEW YORK >> A better-than-expected employment report sent stocks higher today, allowing Wall Street to extend a rally driven by a steady stream of positive economic news.

The buying was selective, though, with some of the momentum fading late in the day. Tech stocks rose sharply, while blue chips recorded more modest advances because of profit-taking. Analysts said investors were growing more confident that the recession had ended, but still want more proof that business is improving.

"We've had a very nice run. But now we're hesitating a little bit," said Charles White, portfolio manager at Avatar Associates. "This is the market's way of telling you that it needs more information, more certainty about the economy and earnings before it's going to break out much further."

The Dow Jones industrial average closed up 47.12 at 10,572.49 for a five-day gain of 203 points, or nearly 2.0 percent. Broader indicators also rose, with the technology-focused Nasdaq composite index advancing 48.04 to 1,929.67. The Standard & Poor's 500 index gained 6.77 to 1,164.31.

For the week, the Nasdaq rose 126.93, or 7.0 percent, while the S&P advanced 32.53, or 2.9 percent.

The NYSE composite index rose 1.20 to 602.10, the American Stock Exchange composite index gained 1.34 to 881.90 and the Russell 2000 index, which is a barometer for small-company stocks, advanced 4.93 to 499.85.

Advancers led decliners 5 to 4 on the New York Stock Exchange, with 1,665 up, 1,485 down and 191 unchanged. Volume was 1.41 billion shares compared with 1.50 billion a day earlier.

Treasuries slid for a seventh day, the longest losing streak for the benchmark 10-year note in almost a decade, as evidence mounted the yearlong recession has ended. The yield on the 10-year note rose 10 basis points to 5.32 percent as its price fell 2332 to 96 1832. Bond prices fall as yields rise.

The 2-year note fell 1/4 to 99 332; its yield rose 15 basis points to 3.50 percent. The 30-year bond fell 2332 to 95 732; its yield rose 5 basis points to 5.71 percent.

The gains were the latest in a series of advances on upbeat economic news. Wall Street reacted positively to Labor Department report today showing the nation's unemployment rate slipped to 5.5 percent in February.

Technology shares rose after two bellwethers indicated their business has stabilized and noticing some improvements.

Intel rose $1.19 to $34.17 after forecasting first-quarter revenue between $6.6 billion and $6.9 billion, narrower than the range it estimated previously but still in line with forecasts. Investors also bid Sun Micro- systems up $1.17 to $10, a 13.3 percent jump, after the computer hardware and software maker confirmed its outlook.

Blue chips were more mixed.

Financial stocks were higher, including American Express, which gained 96 cents to $40.47. And Kmart rose 5 cents to $1.29 after the company said it will close 284 underperforming stores and eliminate 22,000 jobs as part of its restructuring.

But Schering-Plough fell $2.10, or 5.8 percent, to $33.86 after the company indicated it will sell its biggest selling prescription drug, Claritin, over the counter. The move will likely affect profits.

The Dow is now up 5.5 percent for the year, with the S&P 500 ahead 1.4 percent and the Nasdaq down 1.1 percent.