Stocks advance despite
Bristol-Myers warning

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By Amy Baldwin
Associated Press

NEW YORK >> Stocks withstood a day of fluctuating prices and managed a modest advance today as investors tussled with worries about the strength of the economic recovery and a profit warning from Bristol-Myers Squibb.

The buying, which ended a four-day losing streak for the Dow Jones industrials, was mostly attributed to lower prices following two weeks of strong selling. The market struggled throughout the session to hold its gains largely because investors were uneasy about Bristol-Myers. As a drug stock, Bristol-Myers should be considered less risky during economic uncertainty.

"It brings up the question of what is safe," said Barry Hyman, chief investment strategist at Ehrenkrantz King Nussbaum.

The Dow closed up 36.88 at 10,235.17. The blue chips had dropped 228.62, or 2.2 percent, over the previous four sessions.

The broader market also ended higher. The Nasdaq composite index rose 5.40 to 1,789.75, having declined 78.27 Tuesday and yesterday. The Standard & Poor's 500 index inched up 0.94 to 1,126.34.

The NYSE composite index rose 0.33 to 591.01, the American Stock Exchange composite index fell 4.37 to 903.61 and the Russell 2000 index, the barometer of smaller company stocks, rose 1.77 to 498.37.

Advancers edged decliners on the New York Stock Exchange, with 1,727 up, 1,395 down and 222 unchanged. Volume was 1.25 billion shares vs. 1.21 billion yesterday.

The Treasury's 2-year note fell 2/32 to 100 18; its yield rose 3 basis points to 3.56 percent. The 10-year note was unchanged at 96 3032; its yield stayed at 5.28 percent. The 30-year bond slipped 1/32 to 95 18; its yield was unchanged at 5.72 percent.

Analysts said the stock market will have a difficult time sustaining an upturn as investors have little reason besides attractive prices to buy stocks.

Investors are concerned that upcoming first-quarter earnings reports will be disappointing and that corporate outlooks will remain bleak. Mounting tension in the Middle East also has heightened fears in the market that the conflict will lead to higher oil prices.

"People get fed up with not making any money. You are maybe getting some of that. ... I think the upside is limited," said Gary Kaltbaum, market technician for Investors' Edge Partners in Orlando, Fla.

Bristol-Myers plunged $5.55, or nearly 15 percent, to $32.15 after warning late yesterday that its first-quarter and yearly earnings will miss analysts' expectations. The drug maker expects 2002 profits to decline 25 to 30 percent. Other pharmaceutical issues declined, including Merck, down $1.49 at $55.80.

Among the biggest gainers, Bed Bath & Beyond rose $2.08 to $33.67 after reporting fourth-quarter earnings that surpassed Wall Street's forecast by 2 cents a share and raising its yearly outlook.

General Motors advanced 79 cents to $60.14 after Merrill Lynch raised its second-quarter and yearly earnings estimates for the company, citing increased expectations for GM's North American production.

The technology sector, which many analysts predict will be the last to recover, had the hardest time achieving its slim gain. "Technology is not ready yet to be a leadership sector," said Hyman, the Ehrenkrantz King Nussbaum analyst.

Microsoft rose 12 cents to $56.45 despite news that President and Chief Operating Officer Rick Belluzzo resigned and the software maker announced restructuring plans that will eliminate his job. A.G. Edwards upgraded Microsoft's shares to "buy" from "hold."

IBM advanced 88 cents to $100.84, rebounding from two days of losses after Goldman Sachs cut its first-quarter revenue estimate on the Dow industrial.

After the market closed, Minnesota Mining and Manufacturing said first-quarter profit will exceed its forecast, thanks to corporate cost-cutting. The company, which will officially change its name to 3M Co. next week, said earnings were at least $1.20 a share, excluding some expenses. It had forecast a profit of $1.05 to $1.20.