Dow soars nearly 170,
helped by tech rally

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By Lisa Singhania
Associated Press

NEW YORK >> An upgrade of Applied Materials and a forecast of possible improvement in the job market incited another round of bargain hunting today, lifting technology stocks and propelling the Dow Jones industrials nearly 170 points higher.

It was the second triple-digit gain for the Dow in four sessions, but analysts were skeptical that the momentum would last. The advance followed a losing week for the major indexes, suggesting the market was merely rebounding as investors searched for good deals, rather than shaking off the malaise that has weighed on trading for more than a month.

Volume was also light, an indication that many investors were staying away. Volume on the New York Stock Exchange, was 1.08 billion shares, compared with 1.18 billion Friday.

The Dow closed up 169.74, or 1.7 percent, at 10,109.66. Broader indicators fared even better. The tech-focused Nasdaq composite index rose 51.69, or 3.2 percent, to 1,652.54. The Standard & Poor's 500 index was up 19.57, or 1.9 percent, at 1,074.56. The Russell 2000 index rose 6.99, or 1.4 percent, to 499.72.

The price of the Treasury's 10-year note was down 26/32 to 97 11/32 while its yield rose to 5.23 percent from 5.13 percent late Friday. The 30-year bonds were down 1 6/32 to 95 19/32 and yielded 5.69 percent, up from 5.60 percent late Friday.

Wall Street got a lift from a Manpower survey showing that businesses expect to hire more employees in the third quarter of this year, particularly in manufacturing. Manpower is the nation's largest staffing company.

Applied Materials rose $1.88, or 7.9 percent, to $25.88 on a Merrill Lynch upgrade the day before the semiconductor services and products company reports earnings. Goldman Sachs also raised its estimates for the company.

The buying spread across the tech sector. Microsoft climbed $2.64 to $52.69, while Intel advanced $1.51 to $28.52.

Financial stocks also fared well. American Express advanced $1.50 to $43, while Citigroup rose 94 cents at $44.24 despite a Wall Street Journal article that questioned its finances.

Wall Street was also waiting for a Commerce Department report due tomorrow on April retail sales. Stores released their own figures last week, and many were disappointing.

The advance was reminiscent of trading last Wednesday, when stronger-than-expected results from Cisco Systems sent the Dow up 305 and the Nasdaq 122 -- the market's best showing since September. The enthusiasm had faded by week's end, however, as investors decided not to risk losing their gains and cashed in their wins.

That type of skepticism that has pressured Wall Street since early April. Investors have generally been selling on frustration over mediocre first-quarter earnings and unimpressive outlooks. Although the market has occasionally bubbled up, the trend has been primarily lower, with stock prices falling on uncertainty about the timing and robustness of a business recovery. Analysts say upbeat earnings and forecasts are the most likely catalysts for a lasting turnaround. But that might not happen for months. While some retailers report results this month, the next big batch of earnings reports aren't due until July.

Overseas, Japan's Nikkei stock average fell 1.7 percent. In Europe, Germany's DAX index advanced 2.1 percent, Britain's FTSE 100 climbed 0.7 percent, and France's CAC-40 gained 1.1 percent.