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GE, Siebel upgrades
push stocks higher
NEW YORK >> Wall Street extended its buying momentum yesterday as investors grew more optimistic that the economic recovery is firmly on track. Brokerage upgrades of General Electric Co. and Siebel Systems Inc. added to the good mood.
The Dow Jones industrials reached another 14-month high, while the Nasdaq composite and Standard & Poor's 500 index remained at their highest levels in more than a year.
"People are back to work and they have some cash on the sidelines that they want to put to work," said John C. Forelli, portfolio manager for Independence Investment LLC. "In the short run, this is a market that wants to go up."
"We're continuing to get economic news that's confirming we've got a pretty good recovery unfolding starting in the third quarter, and that's giving investors more confidence," he added.
The Dow closed up 45.19, or 0.5 percent, at 9,568.46, for a four-day gain of 234 points. The close marked the index's highest level since June 18, 2002, when the blue-chip average stood at 9,706.12.
The broader market also finished higher. The Nasdaq climbed 11.42, or 0.6 percent, to 1,852.90, having jumped 31 points Tuesday to its highest close since April 1, 2002. The tech-focused index has posted six straight days of gains.
The S&P 500 rose 4.28, or 0.4 percent, to 1,026.27, after gaining nearly 14 points in the previous session to its best finish since June 18, 2002. The index was up for its seventh straight session.
Advancing issues outnumbered decliners about 9 to 5 on the New York Stock Exchange. Consolidated volume was heavy at 2.17 billion shares, compared with 1.85 billion traded Tuesday.
The Russell 2000 index, a barometer of smaller company stocks, rose 3.21, or 0.6 percent, to 510.71. The NYSE composite index gained 27.53, or 0.5 percent, to 5,759.80. The American Stock Exchange composite index rose 4.57, or 0.5 percent, to 982.81.
The 10-year note advanced 1/32, with its yield falling to 4.49 percent. The two-year note gained 116 while its yield dropped to 2 percent.
GE gained 68 cents to $31.12 after J.P. Morgan Chase & Co. upgraded the company's stock rating to "neutral" from "underweight."
Siebel Systems climbed 50 cents to $11.01 after Credit Suisse First Boston raised the tech company's stock rating to "outperform" from "neutral."
A report on construction spending also cheered investors. The Commerce Department said spending rose in July to a seasonally adjusted rate of $879.8 billion. While the 0.2 percent increase from the previous month wasn't as large as analysts' predictions, the pace was still the highest since January.
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