‘There’s no panic’
after explosions

NEW YORK » Calm investors pushed stocks modestly higher yesterday, helping Wall Street recover from steep early losses after the London terror attacks that killed at least 40 people and injured more than 700.

Investors took heart after the homeland security secretary said there was no "specific credible evidence" of a pending attack in the United States. A sharp drop in oil prices also helped the markets rally.

Traders said the timing of the London attacks, several hours before the start of trading in New York, allowed investors to overcome any knee-jerk reactions to the news. Jay Suskind, head trader at Ryan Beck & Co., noted that buy orders quickly entered the market as stocks sold off at the opening bell, and the markets made steady gains throughout the day.

"Unfortunately, this is the world we live in now. Five years ago, the market would have been down much more. Now, we see it as a buying opportunity," Suskind said. "There's no panic."

The Dow Jones industrial average climbed 31.61, or 0.31 percent, to 10,302.29. The Dow had fallen more than 103 points in the first hour of trading.

Broader stock indicators also recovered to post gains for the day. The Nasdaq composite index rose 7.01, or 0.34 percent, to 2,075.66, while the Standard & Poor's 500 index was up 2.93, or 0.25 percent, at 1,197.87.

The major indexes opened about 1 percent lower, but climbed steadily through the session, jumping higher around noon as Homeland Security Secretary Michael Chertoff commented that there was no evidence of a terrorist threat in the United States.

Nonetheless, investors bought up bonds, always seen as a safer investment than stocks. The yield on the 10-year Treasury note fell to 4.06 from 4.07 percent late Wednesday. Gold prices, another traditional safe haven for investors, also rose.

The dollar hit a 14-month high against the British pound after the explosions, but fell against the euro and was mixed against other major currencies.

Crude oil futures fell sharply after the Energy Department reported a drawdown of 3.6 million barrels of crude from the nation's petroleum reserves. Gasoline reserves also fell, but heating oil and other distillate reserves were up sharply. A barrel of light crude settled at $60.73, down 55 cents, on the New York Mercantile Exchange after losing more than $2 per barrel earlier in the session.