Dow Jones Industrial Average and the
Nasdaq Composite Index were basically unstoppable all day and finished on very strong notes.
Even though this week's been riddled with earnings warnings and other bad news, investors seemed to have dipped their toes into the market, liked the temperature and then jumped in with both feet today.
The Nasdaq rose despite a negative note from
. The firm cut both stocks to market performs from outperforms.
countered the note by reiterating its buy ratings on both stocks. Cisco bounced back and ended up 3.5%, and Nortel was 5.7% higher.
Larry Rice, chief investment strategist at
, said the reason for the ballyhoo over the stock is because analysts are uncertain. "They've been stung on a lot of high-tech stocks lately," he said. Analysts are facing more pressure to know what's going on, he added, and an upcoming change in disclosure rules will only exacerbate that pressure.
Rice switched gears to talk about the markets actions this week. He said the market oversold earlier this week largely because of
; but he also said September is historically a bad month and that the market typically for n quarter's end.
The Internet sector made a strong comeback today after
made positive comments on it. The firm said yesterday's selloff was unwarranted. Internet stocks had a lousy session yesterday after
warned of an earnings miss.
Morgan was bullish on
, which rose 1.9%, 8.9% and 5.9%, respectively.
Meanwhile, the Dow had only six detractors; among the winners were
Procter & Gamble
were the Dow's rising stars, each adding more than 20 points. Procter was getting a lift after it said this morning that it thinks double-digit EPS growth on the year is achievable. Procter was up 8.4%.
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Financials, semiconductors, biotech and box-makers rallied, while gold and energy stocks lagged.
Financial stocks showed strength, with the
American Stock Exchange Broker/Dealer Index
up 3.5% and the
Philadelphia Stock Exchange/KBW Bank Index
Morgan Stanley Dean Witter
were two of the biggest boosters in the broker sector, while
Bank of New York
State Street Bank
were buoying banks.
Other sectors were a mixed bag of winners, with the
Philadelphia Stock Exchange Semiconductor Index
lifting 4.3%. The
Nasdaq Biotechnology Index
was up 3.2% and the
Philadelphia Stock Exchange Computer Box Maker Index
Philadelphia Stock Exchange Gold and Silver Index
wasn't getting much love and was down 2.4%.
The energy stocks also gave up some gains. The
American Stock Exchange Oil & Gas Index
was off 1.1%, and the
Chicago Board Options Exchange Oil Index
was 1.2% lower.
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Treasuries were narrowly mixed despite upward revisions to the
Consumer Price Index
), which were forecast
Bureau of Labor Statistics
this morning announced that in each month from January to August, the CPI was 0.1 higher than originally reported, except in May and July, when it was higher by 0.2. From January to August, prices rose 3.5%, revised from 3.4%, and the core prices -- which exclude food and energy -- rose 2.7%, revised from 2.6%, the BLS said.
The BLS revised the CPI after discovering that a software error led to miscalculations.
The benchmark 10-year Treasury note lately was unchanged at 99 14/32, yielding 5.825%.
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