Star-Bulletin news services
Nasdaq closes in
on 2,000 milestone
NEW YORK >> Wall Street surged again yesterday, lifting the Nasdaq composite index to its best close in nearly 22 months as investors welcomed reports of strong growth in the nation's manufacturing sector and a hefty rise in construction spending.
The economic figures were "dynamite," and part of a trend of positive news that's added to the markets' momentum since the rally first began in March, said Alfred E. Goldman, chief market strategist with A.G. Edwards & Sons Inc. in St. Louis. But he warned there may be some pullback ahead.
The Nasdaq composite index was up 35.49, or 1.8 percent, at 1,967.70, after last week's 3.6 percent advance. The tech-dominated index had its best close since Jan. 17, 2002, when it stood at 1,985.82.
The Dow Jones industrial average closed up 57.34, or 0.6 percent, at 9,858.46, having gained 2.3 percent last week. It was the highest closing level for the Dow since May 31, 2002, when it stood at 9,925.25.
The Standard & Poor's 500 index closed up 8.31, or 0.8 percent, at 1,059.02, having risen 2.1 percent. The S&P last closed higher on May 31, 2002, when it reached 1,067.14.
Advancers beat decliners nearly 2 to 1 on the New York Stock Exchange. Volume was 1.35 billion shares compared with 1.45 billion traded Friday.
The Russell 2000 index was up 9.62, or 1.8 percent, at 537.84. The NYSE composite index rose 3.57, or 0.6 percent, to 561.30. The American Stock Exchange composite index lost 2.02, or 0.2 percent, to 1,061.31.
The Treasury's two-year note fell 432 to 99 1632, with its yield rising 6 basis points to 1.88 percent. The 10-year note lost 1632 to 99 532, with its yield gaining 6 basis points to 4.36 percent.
Wall Street was pleased with news that the manufacturing sector grew in October for the fourth straight month. The Institute of Supply Management said its manufacturing index rose to 57 last month from 53.7 in September, a stronger showing than the 55.5 analysts expected.
An index reading above 50 indicates expansion; one below 50 indicates that manufacturing activity is contracting. From March through June, the manufacturing index was below 50.
Also yesterday, a government report showed that construction spending reached an all-time monthly high in September. The Commerce Department reported a 1.3 percent jump in the total value of all building projects. Analysts projected an advance of 0.4 percent.
In third-quarter results announced yesterday, cable firm Charter Communications Inc. swung to a profit, beating analysts expectations. Charter dipped 22 cents, or 5.2 percent, to close at $4.05. Kellogg Co. also beat Wall Street expectations, reporting a 14 percent rise in earnings on strong sales. A bright outlook for the full year helped the cereal maker gain $1.77 to close at $34.90.
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