By Amy Baldwin
Associated Press
NEW YORK – Led by technology companies, stocks extended their rally Thursday as investors gained confidence that the economy will rebound following last month’s terrorist attacks.
The technology sector was boosted by news from Dell Computer that it would reaffirm its earnings outlook. Cisco Systems issued a similar statement a day earlier.
In mid-afternoon trading, the Dow Jones industrial average was down 19.85 at 9,103.93, after closing Wednesday above the 9,000 level for the first time since the Sept. 11 attacks. The blue chips have regained nearly two-thirds of the 1,369 points lost in the first week of trading after the attacks.
But the broader market moved higher. The Nasdaq composite index rose 29.53 to 1,610.34 after advancing 88 on Wednesday, its biggest daily point gain since the attacks. The Standard &Poor’s 500 index gained 2.01 to 1,074.29.
Analysts said they don’t expect the market to move much higher for the remainder of the year, or until it’s clearer when the economy will recover and how the United States will retaliate for the assaults.
“This rally is basically about getting you back to where you should be – so long as nothing else terrible happens,” said Charles Pradilla, chief investment strategist for SG Cowen Securities.
Dell was one of the big tech gainers Thursday, rising $2.10, or 10 percent, to $22.74 after issuing a news release indicating it will reaffirm third-quarter earnings estimates later in the day.
Cisco advanced 48 cents to $14.43, building on Wednesday’s gains when chief executive John Chambers affirmed the company’s outlook.
President Bush this week urged Congress to approve a plan to stimulate the faltering economy. The plan includes tax cuts for individuals and business and would be worth $60 billion and $75 billion.
Also this week, the Federal Reserve lowered interest rates by half a percentage point and for the ninth time this year.
Overseas markets were higher Thursday with Japan’s Nikkei stock average finishing the day with a gain of 2.8 percent. In Europe, France’s CAC-40 climbed 4.3 percent, Britain’s FT-SE 100 rose 2.8 percent and Germany’s DAX index gained 2.1 percent.
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