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Nasdaq beats 2,000,
giving morale boost
NEW YORK >> Anticipation over a strong earnings season and hopes for a good job growth report sent stocks higher in a late afternoon rally yesterday, with the Nasdaq composite index closing above 2,000 for the first time since March 8.
Analysts pointed to a continuing stream of earnings outlooks, many of which promised better-than-expected results when quarterly reports start coming out next week.
However, the light volume in yesterday's session meant that many investors preferred to wait until Friday's job creation figures before making any big moves, analysts said.
"We're just taking a breather here, and that's perfectly normal," said Bill Groenveld, head trader for vFinance Investments. "But with everything you've got going on with the economy and earnings, once the employment numbers come in on Friday, everything is going to rally."
The Dow Jones industrial average rose 52.07, or 0.5 percent, to 10,381.70. It was the second straight day of gains for the Dow, which has advanced in three of the past four sessions.
Broader stock indicators were also higher.
The Standard & Poor's 500 index was up 4.53, or 0.4 percent, at 1,127.00, and the Nasdaq composite index gained 8.06, or 0.4 percent, to 2,000.63.
The price of the Treasury's 10-year note closed down 1/32 point, while its yield was unchanged at 3.89 percent. Two-year Treasury note prices were unchanged and their yield held at 1.62 percent.
The Nasdaq had been in negative territory most of the day until the overall rally caught up to technology stocks.
While the 2,000 barrier means little on a fundamental basis, it is seen as a psychological boost for many investors who were nervous about falling prices over the last month.
The latest Conference Board consumer confidence index reading, released yesterday morning, did not move the markets initially.
The group's March consumer confidence index stood at 88.3, down from 88.5 in February.
While the reading was better than expected, it showed consumer confidence is still lagging.
"It's not moving up aggressively, but it also didn't crater in the month, so it really didn't have an impact today," said Stuart Freeman, chief equity strategist for A.G. Edwards & Sons. "It's going to take continuing signs of some employment growth as we move through the next few months, signs that energy prices will stabilize, for that number to move on the way upward."
Accenture Ltd. gained 40 cents to $24.45 after posting better-than-expected earnings. The consulting company also announced that chief executive Joe Forehand will relinquish his post Sept. 1, but will remain chairman of the company.
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