Buyers Save The Day!
The major equity averages soared Monday as investors ignored the potential effects of rising oil costs and focused instead on a gaggle of positive earnings reports.
Stocks were due for a bounce after a two-week slump and analysts noted that market momentum has likely shifted to the upside in the near-term. The Dow Jones Industrial Average closed up 70 points at 10,628 on strength in American International Group (NYSE:AIG), SBC Communications (NYSE:SBC), Hewlett-Packard (NYSE:HPQ) and JP Morgan Chase (NYSE:JPM). The NASDAQ Composite Index climbed 18 points, to 2,106 amid bullish activity in disk drive, telecom, and computer hardware shares. Among the broader market sectors, gains in brokers, biotech, airline, health care, drugstores and utility shares propelled the S&P 500 Index 11 points higher to 1,195. Advancers outpaced decliners by a 2 to 1 on the New York Stock Exchange, and by a 3 to 2 margin on the NASDAQ. Trading volume was around 1.6 billion on the Big Board and 2.0 billion on the technology exchange. In the bond market, treasury prices ended higher after Federal Reserve members assured traders that inflationary pressures in the U.S. economy remain under control. The benchmark 10-year note finished up 4/32, yielding 4.19%.