Stocks Still on the Plus Side but Off Highs

Author:
Publish date:

Oh, what a difference a repentant speech from the commander-in-chief make to a skittish stock market.

Continuing their emotional ride, blue-chips reversed course and surged higher while technology and small-cap issues extended their gains as

President Clinton

at a

White House

prayer breakfast delivered a somber, repentant speech ("the sorrow I feel is genuine") before a group of religious leaders.

The

Dow Jones Industrial Average

was up 33 to 7648. In the broader market, the

S&P 500

was up 5 to 985, while the tech-heavy

Nasdaq Composite Index

was up 25 to 1610. The small-cap

Russell 2000

was up 3 to 348.

The major market gauges are, however, all off their session highs.

Meanwhile, the benchmark 30-year Treasury bond was up 11/32 to 104 27/32, yielding 5.18%.

The Dow fell sharply at the open before bouncing off its Aug. 31 lows. The resurgence came during the president's address, in which he apologized again for the pain he has caused and apologized to

Monica Lewinsky

and her family.

Lewinsky, as virtually the entire world knows, is the former intern with whom Clinton had an affair, and the events surrounding the affair and its aftermath are the subject of independent counsel

Kenneth Starr's

report. The 445-page report was delivered to

Congress

Wednesday and is scheduled to be

posted

on the Internet this afternoon. The report is said to contain evidence of possibly impeachable offenses allegedly committed by Clinton.

Meanwhile, some market participants said another underpinning factor for stocks today was the glowing third-quarter revenue picture given by computer chip giant

Intel

(INTC) - Get Report

last night.

"It's wild, it really is," Paul Rich, a trader at

BT Brokerage

, said of the market's morning action.

"You could see this thing turn around on a dime," Rich said, speaking with the Dow up 112. "

But I don't think it's going to last."

On the

New York Stock Exchange

, 1,593 advancers were leading 991 decliners on 234 million shares.

Nasdaq Stock Market

winners were beating losers 1,758 to 1,210 on 214 million shares.

On the NYSE, 220 issues were at new 52-week lows while 5 were at new highs. On the Nasdaq, 122 issues were at new lows while new highs totaled 3.

The good news for technology stocks began after the close yesterday when Intel said it expects its third-quarter revenue to come in 8% to 10% higher than the second quarter's $5.9 billion.

Volume leaders on the Nasdaq included

Dell

(DELL) - Get Report

and Intel.

Rich said trading was busy this morning not only in tech issues but also in the bank sector.