Star-Bulletin news services
Wall Street marks
year of recovery
NEW YORK >> Powered by a streak of upbeat earnings and economic news, Wall Street surged higher yesterday, completing a remarkable year that saw the major indexes make a stunning rebound from the depths of the three-year-long bear market.
As of yesterday's close, the Nasdaq composite index had recovered an impressive 71.6 percent of its value since Oct. 9, 2002, while the Dow Jones industrials were up 32.9 percent and the Standard & Poor's 500 index had regained 33.7 percent.
A Labor Department report suggesting the pace of layoffs has slowed fed the market's good mood, especially after a spate of mixed economic news in recent weeks.
"Maybe the market is finally believing that this rebound we've been seeing is real," said Jay Suskind, head trader at Ryan Beck & Co. "If things continue to have a sunny outlook, people won't want to miss it."
Advancing issues outnumbered decliners 3 to 2 on the New York Stock Exchange. Consolidated volume was moderate, with 1.991 billion shares traded, compared with 1.583 billion shares on Wednesday.
The Nasdaq rose 18.12, or 1 percent, to close at 1,911.90. The most battered of the market's major indexes during Wall Street's three-year slump, the Nasdaq last closed higher 19 months ago, on March 11, 2002, when it stood at 1,929.49. A year ago, on Oct. 9, 2002, the Nasdaq was at a six-year low of 1,114.11.
The Dow advanced 49.11 yesterday, or 0.5 percent, to 9,680.01 -- its highest close since June 18, 2002, when the average was at 9,706.12. On Oct. 9 of last year, the Dow stood at a five-year low of 7,286.27.
The S&P 500 index rose 4.95, or 0.5 percent, to 1,038.73. A year ago, the S&P 500 had fallen to a six-year low of 776.76.
The price of the Treasury's 10-year note closed down 7/16 point, while its yield rose to 4.29 percent from 4.24 percent Wednesday. Two-year Treasury notes were down 1/16 point and yielded 1.65 percent, up from 1.63 percent Wednesday.
Solid retail sales reports from Wal-Mart Stores Inc., Gap Inc. and others also contributed to the market's positive tone.
Wal-Mart advanced 44 cents to close at $58.96 after the retailer reported same-store sales, those from stores open at least a year, rose 6 percent last month, beating its own expectations and analyst estimates.
Gap, which said same-store sales were up 13 percent last month, rose 96 cents, or 5.3 percent, to close at $19.15.
Computer Associates International Inc. was down $3.01, or 10.4 percent at $25.95 on news the firm had fired three top financial executives in the midst of a government accounting probe. An inquiry by the company's audit committee found the three had inappropriately recognized sales in advance of signed contracts.
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