NEW YORK >> Investors took some chances on blue chip stocks today, picking up bargains after the Dow Jones industrials' nearly 900 point drop over the past two weeks. But the buying wasn't enough to save Wall Street from its third straight weekly decline, a slide not seen in nearly four months, or from heavy losses for the month. Dow rallies despite mixed
economic, earnings newsBy Amy Baldwin
Associated PressAnalysts attributed the day's gains to investors seeking lower-priced stocks rather than improving sentiment about the market or the economy, especially since the news on both fronts was mixed today.
The Dow closed up 108.68, or 1.4 percent, at 8,053.81. For the week, the Dow lost 1 percent.
The broader market was mixed with technology issues slipping on signs of further weakness in the chip sector. The Nasdaq composite index slipped 1.44, or 0.1 percent, to 1,320.91. The Standard & Poor's 500 index rose 11.09, or 1.3 percent, to 855.70. For the week, the Nasdaq fell 1.6 percent and the S&P lost 0.7 percent.
All three indexes endured declines in eight of the previous 11 sessions. Over that period, the Dow plummeted 897.49. And, despite today's surge, the indexes suffered their third straight weekly losses, which hasn't happened in almost four months, or since the period that ended Oct. 4.
Likewise, it was a bad month for Wall Street. For January, the Dow fell 3.5 percent, the Nasdaq declined 1.1 percent and the S&P lost 2.7 percent.
The Russell 2000 index, which tracks smaller company stocks, rose 4.55, or 1.2 percent, today to 372.17.
The price of the Treasury's 10-year note was down 1/16 point, while its yield rose to 3.97 percent from 3.96 percent late yesterday. Two-year Treasury notes were down 1/32 and their yield rose to 1.65 percent from 1.64 percent yesterday.
Today's economic news was mixed.
The Commerce Department reported consumer spending rose by 0.9 percent in December. Boosted by free-financing deals on cars, it was the largest increase in spending in five months and better than the 0.7 percent increase analysts expected.
And the Purchasing Management Association of Chicago reported that its index of manufacturing activity in the Midwest rose to 56.0 in January from 51.7 in December. A reading above 50 indicates expansion in activity.
On the downside, the University of Michigan reported its consumer sentiment index fell to 82.4 in January from 86.7 in December.
Companies also produced mixed news. Honeywell rose 94 cents to $24.44 after meeting fourth-quarter earnings expectations and forecasting 2003 profit in line with analysts' expectations.
But the tech sector was pulled lower by chip equipment maker Applied Materials, which said first-quarter orders would decline by 35 percent, rather than the 20 percent previously projected. Applied Materials fell 98 cents to $11.97, while KLA-Tencor fell $1.11 to $32.64.
Japan's Nikkei stock average finished up 0.3 percent. In Europe, France's CAC-40 rose 0.8 percent, Britain's FTSE 100 declined 0.3 percent, and Germany's DAX index gained 2 percent.
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