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
TheStreet Open House

Market Finds Strength in Numbers

An oversold condition, plus strength in the dollar, plus some better-than-expected economic data helped stocks move higher early Monday, notwithstanding weakness in defense stocks after the Columbia shuttle tragedy. Meanwhile, Treasuries were under pressure, thanks to the strong data and President Bush's budget proposal.

As of 1:49 p.m. EST, the Dow Jones Industrial Average was up 1.11% to 8143.21, although down from its earlier high of 8150.89. The S&P 500 was higher by 0.9% to 863.56, vs. its early best of 864.66, and the Nasdaq Composite was up 0.85% to 1332.10, after having traded as high as 1334.91.

Meanwhile, the price of the benchmark 10-year Treasury note was down 13/32 to 99 28/32, its yield rising to 4.01%. The president's budget would create a record $307 billion deficit in fiscal 2004, raising concerns about the government's need to increase its borrowing via the issuance of Treasury securities.

Stock futures were higher in premarket hours and shares opened with modest strength Monday, piggybacking on strength in the greenback. The dollar was most notably strong vs. the Japanese yen, which fell to a six-week low after Japanese officials talked about "massive" sales in order to weaken the currency. The dollar then received a secondary boost following the 10 a.m. EST release of the January ISM Manufacturing Index and December construction spending data. Of late, the U.S. Dollar Index was up 0.06 to 99.97.

The Institute for Supply Management said its key index of manufacturing conditions came in at 53.9 for January, down from an upwardly revised 55.2 in December but slightly ahead of consensus estimates. The new orders index slid to 59.7 from 69.2 in December but still was relatively high, while the headline index was above 50 for a third-straight month, indicating expansion in the manufacturing sector.

"It is key to remember that strength in manufacturing depends crucially on final demand strength," about which there is still uncertainty after a sub-par fourth quarter, observed Peter Kretzmer, senior economist at Banc of America. "Current strength may derive from better capital spending demand in recent months, but may also simply reflect very low inventories across most industries."

1 of 3

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 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

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