Nasdaq closes
above 1,400

The major indexes all rebounded
from yesterday's bout of profit-taking

---

By Amy Baldwin
Associated Press

NEW YORK >> Investors resumed buying stocks today, sending prices moderately higher after a bout of profit-taking ran its course. Technology was the session's biggest winner, giving the Nasdaq composite index its first close above 1,400 in six weeks.

"The market is a little stretched so you're going to see some backing and filling," said Steven Goldman, chief market strategist with Weeden & Co. in Greenwich, Conn. "Today after pulling back, you're seeing no signs of exhaustion."

The Nasdaq composite index closed up 32.51, or 2.4 percent, to 1,409.10. The Nasdaq last finished above 1,400 on July 8. Today's finish was the Nasdaq's best since July 5 when it stood at 1,448.36.

The market's other major gauges were also higher. The Dow Jones industrial average climbed 84.95, or 1 percent, to 8,957.02, after falling 118 yesterday. The blue chip index has rebounded more than 1,200 points since hitting a low of 7,702.34 on July 23.

The Standard & Poor's 500 index advanced 11.91, or 1.3 percent, to 949.34. The Russell 2000 index rose 8.94, or 2.3 percent, to 406.78.

Advancing issues outnumbered decliners 2 to 1 on the New York Stock Exchange, where volume was light.

The price of the Treasury's 10-year note was down 7/16 point today, while its yield rose to 4.20 percent from 4.14 percent late yesterday. Two-year Treasury notes were down 1/32 point and yielded 2.09 percent, up from 2.07 percent yesterday.

Investors have been generally upbeat after two straight weeks of gains among the three major indexes. A lack of major negative news so far this week has also helped stocks move higher. Despite yesterday's decline amid profit taking, the market's indexes have netted gains so far for the week.

But analysts said stocks are still vulnerable to profit-taking, particularly when companies start issuing third-quarter profit warnings later this month and in early September.

"We had a recent run-up in the market that was impressive," said Alan Ackerman, executive vice president at Fahnestock & Co. "It appears that a sustainable advance may take time to develop."

Technology got a boost from Internet Security Systems, which rose 74 cents to $18.16 following an upgrade from the investment firm Raymond James. And, despite forecasting a third-quarter loss, chip equipment maker Newport Corp. rose 75 cents to $19 after announcing it will lay off between 225 and 275 employees.

Tech bellwethers were also strong with Microsoft rising $1.24 to $52.28 and Intel advancing 59 cents to $19.56.

The market also owed part of its advance to specialty retailers that posted better-than-expected earnings. Gymboree rose $1.45 to $16.35, and Talbots climbed 89 cents to $33.20.

On the downside, however, RadioShack fell 16.4 percent, down $4.74 at $24.21, after lowering its third-quarter earnings and sales outlook.

Brokerage stocks were weak following a downgrade by Salomon Smith Barney. Lehman Brothers dropped $2.20 to $58.98, and Bear Stearns fell 33 cents to $65.79.

Overseas, Japan's Nikkei stock average finished up 0.2 percent. In Europe, France's CAC-40 advanced 1.3 percent, Britain's FTSE 100 slipped 0.1 percent, and Germany's DAX index climbed 2.6 percent.