NEW YORK >> Wall Street waited until the eleventh hour again today, sending stocks solidly higher late in the session after waffling most of the day on fears of more terror attacks. Wall Street rallies
late in trading dayBy Lisa Singhania
Associated PressIt was the second day in a row that stocks turned around in late afternoon. The gains followed an unexpected increase in big-ticket orders and a drop in unemployment insurance claims, and analysts said the market appeared to be doing its best to make sure its fears about terrorism don't overshadow good economic news.
"After all the terror warnings this week, no one is willing to make big bets on stocks," said Peter Cardillo, president and chief strategist of Global Partner Securities. "But no one is showing any irrational behavior, and that's a good sign."
The Dow Jones industrial average closed up 58.20, or 0.6 percent, at 10,216.08, after rising 52 points yesterday. Advancing issues led decliners 3 to 2 on the New York Stock Exchange. Volume came to 1.18 billion shares, compared with 1.15 billion shares yesterday.
Broader stock indicators also ended higher. The technology-focused Nasdaq composite index fared particularly well, advancing 24.18 or 1.4 percent, at 1,697.63, while the Standard & Poor's 500 index was up 11.06, or 1.0 percent, at 1,097.08. The Russell 2000 gained 7.33 to 501.24.
The price of the Treasury's 10-year note dropped 7/32 point today to 97 31/32, while its yield rose to 5.14 percent from 5.12 percent late yesterday. Two-year Treasury notes fell 1/16 point and yielded 3.22 percent, up from 3.19 percent late yesterday.
The Commerce Department reported that orders for big purchases including cars and communications equipment jumped 1.1 percent in April, a bigger increase than expected. It was the fifth straight month that orders for durable goods rose. A separate report from the Labor Department report showed jobless claims dropped by 9,000 to 416,000 last week, the lowest level in eight weeks.
But investors were still cautious, unnerved by the government's warnings earlier this week that future terrorist attacks were all but inevitable. Analysts said the unease translated into a market in which investors were more inclined to sit tight -- rather than buy.
Technology stocks were mixed. Ciena dropped 36 cents to $6.08 on weak second-quarter sales and a warning that the third quarter could also be disappointing. But Microsoft jumped $1.13 to $54.82 while Cisco Systems gained 34 cents to $16.90.
Among blue chips, Boeing dropped 26 cents to $44.15 on news it will deliver eight fewer widebody jets than expected next year.
Krispy Kreme rose $1.55 to $41.10 after reporting first-quarter results slightly ahead of expectations.
The market's touch-and-go mood wasn't surprising given the political uncertainty investors have had to deal with all week. Rumors that Osama bin Laden had been captured helped lift stocks to a small advance yesterday, but stocks drifted downward most of today with the finishing advance only solidifying in the last hour of trading.
"We've got to deal with these worries," said Bill Meade, managing director of RBC Capital Markets. "What you're seeing is the market trying to intellectualize what appears to be a ... 100 percent certainty that there will be some type of terror attack on U.S soil again."
Wall Street's effort at a rally may also have been hurt by the approaching Memorial Day holiday. Some traders were leaving for vacation early, and the uneasiness about possible terrorism made others reluctant to leave themselves too exposed in the market over the long weekend. U.S. markets will be closed Monday.
Overseas, Japan's Nikkei stock average rose 0.2 percent. In Europe, Germany's DAX index fell 0.9 percent, Britain's FTSE 100 advanced 0.5 percent, and France's CAC-40 gained 0.4 percent.