This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Come Up Big Again

Updated from 4:30 p.m. EST

Stocks powered their way to a second-straight day of solid gains Thursday, as bullish comments from analysts and a spate of generally positive economic reports took investors' minds off accounting scandals.

The Dow Jones Industrial Average djia closed up 157 points, or 1.6%, to 9920. The Nasdaq nasdaq was up 21 points, or 1%, to 1934, and the S&P 500 s&p500 added 17 points, or 1.5%, to 1123.

Combined with Wednesday's gains, the Dow has now erased all of the losses it suffered on Tuesday, when investor paranoia about accounting practices knocked 248 points off the blue-chip average. The Nasdaq is still about 10 points below its Monday close.

Both averages ended January lower, a bad omen for the year according to some market watchers.

This week has been full of economic data, most of which has come in better than expected. On Thursday, Wall Street got the Chicago purchasing managers' index, which rose to 45.1 in January, as expected, from 41.5 in December.

Elsewhere, the Labor Department said the employment cost index rose 0.9% in the fourth quarter, slightly ahead of forecasts. Initial jobless claims initialjoblessclaims rose 30,000 to 390,000 for the week ended Jan. 26, essentially in line with the consensus estimate. Meanwhile, the Commerce Department said personal consumption fell 0.2% in December, also in line with the consensus.

Newly released minutes showedFed federalreserve policymakers came close to leaving interest rates unchanged when they met in December. The notes describe the decision to impose a quarter-point cut as a "close call" and, perhaps significantly, said part of the rationale for signing off on it was that the Central Bank could quickly raise rates if inflation became an issue.

Plenty of corporate news was still influencing the market, even as earnings season is drawing to a close. Merrill Lynch upgraded Intel (INTC) to strong buy from buy, saying the chipmaker should gain better-than-expected market share, and that visibility will improve. Analyst Joe Osha raised his full-year earnings projection to 73 cents a share from 70 cents, with a price target of $42. The stock rose $1.18, or 3.5%, to $35.04.

Procter & Gamble (PG) posted second-quarter earnings of $1.03 a share, beating analysts' forecasts by a penny. Net sales rose 2% to $10.4 billion. After the release, Prudential Securities upgraded the consumer products maker to buy from hold, based on the stock's valuation. P&G shares ended up $3.39, or 4.3%, to $81.68.

Oracle (ORCL) told analysts it expects the software industry to rebound this spring and that its current quarter will probably be its worst. Rumors that the company beat out Siebel Systems (SEBL) for an accounting software contract with AT&T (T) were also circulating Thursday. Oracle's stock closed up 64 cents, or 3.9%, to $17.26.

Verizon (VZ) posted fourth-quarter earnings of 77 cents a share, matching Wall Street's estimates. The company forecast 2002 earnings in the range of $3.20 to $3.30 a share, compared with the consensus estimate of $3.24. Capital expenditures are projected to fall to between $15 billion and $16 billion. Shares of the telecommunications giant rose 27 cents, or 0.6%, to $46.35.

Tyco International (TYC) continued to bounce back after two top executives said they were buying $30 million of shares in the conglomerate. The shares ended up 30 cents, or 0.9%, at $35.15.

Research in Motion (RIMM) was performing well after being upgraded to the recommended list at Goldman Sachs. Shares climbed $1.08, or 4.4%, to $25.61.

After Wednesday's close Hotjobs.com (HOTJ) posted fourth-quarter earnings of a penny a share on revenue of $25.1 million, beating analysts' expectations. The online job site expects to close its merger deal with Internet portal Yahoo! (YHOO) during the first quarter.

Finally, McLeodUSA (MCLD) filed a prepackaged Chapter 11 bankruptcy after coming to terms on a recapitalization plan with a group of bondholders.

Foreign markets were primarily higher. London's FTSE 100 gained 1.5% to 5165 and Germany's Xetra Dax closed up 1.1% to 5108. In Asia, Japan's Nikkei climbed 0.8% to 9998 while Hong Kong's Hang Seng fell 0.3% to 10,725.

Treasuries were mostly higher in the afternoon. The 10-year note was recently gaining 8/32 to 100 5/32, yielding 4.98%.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs