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Dow Ends Up 96; Nasdaq Gains 165 |
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December 9, 2000
NEW YORK (AP) — Wall Street went on a buying spree Friday, encouraged by a government employment report that could bolster the case for an interest rate cut early next year. Investors were so optimistic they shrugged off an earnings warning from Intel. The Dow Jones industrial average and Nasdaq composite index each had solid triple-digit gains until the afternoon but gave up ground before the close, partly because of the continuing uncertainty from the presidential election. The Nasdaq gained 6 percent, rising 164.77 to 2,917.43 and ending the week with a 272.14-point or 10.3 percent gain. The Dow rose 95.55 to 10,712.91, a 0.9 percent gain, after spiking more than 185 points in earlier trading. The blue chips had a gain of 339.37, or 3.3 percent, for the week. The Standard & Poor's 500 index rose 26.34 to 1,369.89, giving it a 54.66-point or 4.2 percent advance for the week. In after-hours trading, technology stocks fell after a late ruling from the Florida Supreme Court made it less likely the presidential deadlock would be resolved soon. But analysts said the election limbo and the after-hours decline in stocks shouldn't detract from what otherwise was a strong day. ``The political uncertainty has intraday effects but it doesn't affect the market's general movements,'' said Chris Dickerson, an analyst with Global Market Strategists in Gainesville, Ga. ``If we took out this political uncertainty, the market looks like it's trying to find a bottom.'' Wall Street started the day with a lift from a Labor Department report showing weak job growth in November helped the unemployment rate edge up to 4.0 percent. It was the first increase in the jobless rate since August. The growth is viewed as a sign the economy is moderating, and a possible reason for the Fed to reduce interest rates. Tech stocks surged ahead despite the warning Thursday from Intel, the latest high-profile tech company to forecast an earnings slowdown. Intel rose $1.69 to $34 after announcing that its fourth-quarter revenues would be flat due to slowing demand for PCs. It fell $1.13 to $32.88 after the Florida Supreme Court ruling. In previous months, warnings such as Intel's prompted massive selling on Wall Street. Analysts said the market's different reaction Friday showed investors were taking the warnings in stride, and may be viewing the technology sector as being oversold. Other tech bellwethers also fared well in regular trading, only to lose ground after the market's close. Oracle fell $1.44 to $28.63 after gaining $1.75 in regular trading. Cisco Systems slipped $2.25 to $50.13, nearly wiping out a gain of $2.44 in the regular session. Motorola, which had warned Thursday, closed up 6 percent, gaining $1.69 to $18.88, but managed to keep its increase in late trading. The surge in high-tech helped lift financial stocks as well, but some sectors — particularly those popular with investors in times of uncertainty — did not share in the advance. Health care stocks were mainly lower, as were consumer staple makers and utilities. Merck fell $2.56 to $88.56 and Duke Energy slipped 88 cents to $85.75. Procter & Gamble ended regular trading $2.31 at $71.25, although it did gain $1 in late trading, after the Florida court ruling. Analysts said it's hard to get a definitive read on where the market is going. Larry Rice, chief investment officer for Josephthal & Co., warned not too read too much into the market's gains. He said the effects of the moderating economy will be felt in first and second-quarter earnings, too, so just getting through the fourth-quarter reporting period won't mean investors are home free. ``When is the shoe going to drop on Cisco, on Juniper, these other big Nasdaq stocks that are still selling at a signifcant premium?'' he said. Advancing issues led decliners more than 2 to 1 on the New York Stock Exchange. Consolidated volume came to1.61 billion shares, well ahead of the 1.35 billion shares Thursday. The Russell 2000 index rose 17.97 to 479.07. Overseas, Japan's Nikkei stock average fell 0.2 percent. Germany's DAX index rose 1.9 percent, Britain's FT-SE 100 gained 0.9 percent, and France's CAC-40 slipped 0.8 percent. On the Net: New York Stock Exchange: http://www.nyse.com Nasdaq Stock Market: http://www.nasdaq.com /MU/ 1930 Hrs |