Markets close higher, extend rally in technology stocks

Associated Press

NEW YORK — Stock prices rose for a second straight day today as bargain-hunting investors extended a broad rally in technology stocks.

After spending the early part of the session in negative territory, the Dow Jones industrial average recovered to close up 83.61 at 10,226.59, according to preliminary calculations.

Broader indicators were also higher. The Nasdaq composite index rose 64.49 to 3,483.09. The Standard and Poor’s 500 index was up 89.16 at 1,396.92.

"Most of the bad news is out of the way. We’re having a rally based on stocks being as cheap as they’ve been in a long time," said Barry Berman, head trader for Robert W. Baird &amp Co.

Technology issues continued their upward trek, lifting the Nasdaq. Microsoft traded up $3.31 at $65.19, extending a nearly 20 percent gain from the previous session. Chip maker Intel, another bellwether issue, was also up again, rising $1.13 to $43.06.

And Internet stocks were up across the board, led by eBay, which reported strong third-quarter earnings late Thursday. After rising more than $5 earlier in the session, the online auction company ended up 88 cents at $58.06.

Internet parts and services companies were also up. Fiber optics company JDS Uniphase jumped $12.44 to $102.38, Ciena climbed $9.61 to $149.50 and America Online gained $1.11 to $46.55.

With earnings reports from most of the widely-held bellwether companies already announced, Berman said the one remaining concern on investors’ minds is the unstable situation in the Middle East, where skirmishes between Palestinians and Israeli troops intensified Friday despite a truce announced earlier this week.

"We’ll see next week whether that resolves itself," said Berman, the Baird analyst.

Analysts said the selloff in blue chip stocks early Friday was typical for the session immediately following a strong move upward. "This is just daily trading noise," said John Cleland, chief investment strategist at Security Benefit Group.

Much of the activity on the Dow appeared related to talk that United Technologies was considering buying out Honeywell for $40 billion. Both companies are Dow components. United Technologies fell more than $7 on the news, but recovered after the companies called off merger talks and its shares finished down $2.75 at $65.25. Honeywell closed up $10.50 at $46.63.

Stock traders also continued their focus on corporate earnings, a day after the major indexes rebounded from one of the biggest plunges this year.

A warning from Circuit City of lower than expected quarterly earnings set the retailer’s stock down $7.63, or 36 percent, to $13.81. Wireless communications company Ericsson also fell, down $2.31 to $11.69, after it warned of weak fourth-quarter earnings.

But Merck climbed $4.19 to $81.75 after the pharmaceutical company beat Wall Street’s third-quarter estimates.

Advancing issues outnumbered decliners by a ratio of 4 to 3 on the New York Stock Exchange, where volume came to 1.17 billion shares, behind the 1.29 billion traded Thursday.

The Russell 2000 index was up 5.88 at 487.18.

Overseas, Japan’s Nikkei stock average rose 2.62 percent. Germany’s DAX index was off 0.16 percent, Britain’s FT-SE 100 rose 0.92 percent, and France’s CAC-40 rose 1.37 percent.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Ariel Garcia, 4, was last seen Wednesday morning in an apartment in the 4800 block of Vesper Dr. (Photo provided by Everett Police)
How to donate to the family of Ariel Garcia

Everett police believe the boy’s mother, Janet Garcia, stabbed him repeatedly and left his body in Pierce County.

A ribbon is cut during the Orange Line kick off event at the Lynnwood Transit Center on Saturday, March 30, 2024 in Lynnwood, Washington. (Annie Barker / The Herald)
‘A huge year for transit’: Swift Orange Line begins in Lynnwood

Elected officials, community members celebrate Snohomish County’s newest bus rapid transit line.

Bethany Teed, a certified peer counselor with Sunrise Services and experienced hairstylist, cuts the hair of Eli LeFevre during a resource fair at the Carnegie Resource Center on Wednesday, March 6, 2024, in downtown Everett, Washington. (Ryan Berry / The Herald)
Carnegie center is a one-stop shop for housing, work, health — and hope

The resource center in downtown Everett connects people to more than 50 social service programs.

Everett mall renderings from Brixton Capital. (Photo provided by the City of Everett)
Topgolf at the Everett Mall? Mayor’s hint still unconfirmed

After Cassie Franklin’s annual address, rumors circled about what “top” entertainment tenant could be landing at Everett Mall.

Foamy brown water, emanating a smell similar to sewage, runs along the property line of Lisa Jansson’s home after spilling off from the DTG Enterprises property on Tuesday, March 5, 2024, in Snohomish, Washington. Jansson said the water in the small stream had been flowing clean and clear only a few weeks earlier. (Ryan Berry / The Herald)
Neighbors of Maltby recycling facility assert polluted runoff, noise

For years, the DTG facility has operated without proper permits. Residents feel a heavy burden as “watchdogs” holding the company accountable.

Rosario Resort and Spa on Orcas Island (Photo provided by Empower Investing)
Orcas Island’s storied Rosario Resort finds a local owner

Founded by an Orcas Island resident, Empower Investing plans” dramatic renovations” to restore the historic resort.

A possible development site for Snohomish Garden Townhomes at 9321 Paradise Lake Road on Friday, April 5, 2024 in Snohomish, Washington. (Annie Barker / The Herald)
Neighbors’ effort falls short of stopping 196 townhomes near Maltby

Nearby residents said the proposed development would make traffic much worse along Highway 522 — among other concerns.

Logo for news use featuring the municipality of Stanwood in Snohomish County, Washington. 220118
Stanwood man gets federal prison for selling fentanyl on dark web

In 2013, Christerfer Frick was sentenced to nine years for trafficking drugs. He began selling online upon his release in 2020.

Traffic idles while waiting for the lights to change along 33rd Avenue West on Tuesday, April 2, 2024 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Lynnwood seeks solutions to Costco traffic boondoggle

Let’s take a look at the troublesome intersection of 33rd Avenue W and 30th Place W, as Lynnwood weighs options for better traffic flow.

Dan Templeman speaks during a forum lead by The Daily Herald on housing affordability at the Mukilteo Library on Thursday, April 11, 2024 in Mukilteo, Washington. (Annie Barker / The Herald)
At Herald forum, experts affirm Housing First model, despite downsides

At the Mukilteo Library, panelists discussed drug-contaminated housing and lengthy cleanup efforts in Snohomish County.

Molbak's Garden + Home in Woodinville, Washington closed on Jan. 28 2024. (Photo courtesy of Molbak's)
Molbak’s, former Woodinville garden store, hopes for a comeback

Molbak’s wants to create a “hub” for retailers and community groups at its former Woodinville store. But first it must raise $2.5 million.

A fire at a home near Alderwood Mall sent one neighbor and one firefighter to the hospital. (Photo provided by South County Fire)
Officials: Residents returned to burning Lynnwood home to rescue dogs

Five people and six dogs were displaced in the Thursday afternoon house fire, according to South County Fire.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.