Nasdaq has one of its best days ever as bargain hunters push stocks higher

Associated Press

NEW YORK — Stocks rebounded today from a selloff the day before as bargain-hunting investors helped push the Nasdaq composite index up more than 240 points today, one of its best one-day performances ever.

The Dow Jones industrial average closed up 157.60 at 10,192.18, according to preliminary calculations, a marked contrast to its 379-point plunge the previous day — its fifth-worst day ever in terms of point declines.

Broader stock indicators were also higher. The Standard &amp Poor’s 500 index finished up 44.39 to 1,374.17.

Meanwhile, the Nasdaq composite index surged 242.09 points, or 7.87 percent, to 3,316.77. It was the Nasdaq’s third-highest one-day point gain and second highest one-day percentage gain and came a day after the Nasdaq closed at its low point for 2000.

"Following the fifth-worst drop ever and amid exploding Mideast tensions, the market appears oversold to some. The U.S. economy is still strong, consumer confidence remains high and productivity growth remains in gear," said Alan Ackerman, senior vice president at Fahnestock.

In addition, the technology sector got a boost today from PMC-Sierra, Juniper Networks and Gateway, all of which beat analysts’ expectations.

PMC Sierra rose $32, or 20.2 percent, to $190.44, and Juniper Networks surged $28.89, or 14.5 percent, to $228.50 in Nasdaq trading. Gateway rose $9.48 to $53.11 in trading on the New York Stock Exchange.

On Thursday, stocks plunged over worries about the escalating violence in the Mideast and after retailing giant Home Depot became the latest well-known company to warn that earnings wouldn’t meet expectations.

But during today’s session, stock prices rose despite new economic data that could re-ignite inflation worries.

Wholesale prices shot up 0.9 percent in September, the sharpest increase in seven months, led by big jumps in the costs of gasoline and heating oil, according to the Labor Department. Car prices posted their biggest increase in five years and food costs rose the first time in five months.

Wholesale prices had fallen in August, however, a factor that offset concern for the September figures.

Today’s move higher was attributed by analysts to investors seeking to purchase stocks at bargain prices following the Thursday’s performance.

Most investors believe earnings warnings will continue to plague the markets, according to Ackerman. "But on a highly selective basis, this may be a good time to do some bargain hunting," he said.

Widely held technology stocks, which were hurt Thursday based on long-running concerns for profit growth in the wake of a string of earnings warnings and disappointing third quarter results, moved higher today.

Compaq Computer closed up $2.66 to $25.20, and electronics company Nokia gained $3.69 to $33.13 on the NYSE.

Bellwether Nasdaq stocks also rose. Intel was up $3.25 to $40.38, and Cisco Systems rose $6.25 to $56.06.

Advancing issues slightly outnumbered decliners on the NYSE, where volume came to 1.22 billion shares, down slightly from Thursday’s pace.

The Russell 2000 index rose 13.85 to 476.82.

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

Talk to us

More in Local News

Cat killed, 9 people displaced after duplex fire in Everett

None of the people were injured in the fire reported around 1:15 a.m. in the 11500 block of Meridian Avenue S.

Brian Henrichs, left, and Emily Howe, right, begin sifting out the bugs from their bug trap along Port Susan on Monday, May 22, 2023 in Stanwood, Washington. (Olivia Vanni / The Herald)
‘A delta for the future’: Scientists try to save salmon at Stilly’s mouth

The Stillaguamish River’s south fork once supported 20,000 salmon. In 2019, fewer than 500 fish returned to spawn.

Mountlake Terrace Library, part of the Sno-Isle Libraries, in Mountlake Terrace, Washington on Thursday, June 1, 2023. (Annie Barker / The Herald)
Sno-Isle workers cite safety, unfilled positions in union push

Workers also pointed to inconsistent policies and a lack of a say in decision-making. Leadership says they’ve been listening.

A view over the Port of Everett Marina looking toward the southern Whidbey Island fault zone in March 2021. (Olivia Vanni / The Herald)
Snohomish County agencies to simulate major disaster

The scenario will practice the response to an earthquake or tsunami. Dozens of agencies will work with pilots.

A few weeks before what could be her final professional UFC fight, Miranda Granger grimaces as she pushes a 45-pound plate up her driveway on Tuesday, July 12, 2022, in Lake Stevens, Washington. Her daughter Austin, age 11 months, is strapped to her back. (Olivia Vanni / The Herald)
Daily Herald staff wins 5 honors at annual journalism competition

The Herald got one first-place win and four runner-up spots in SPJ’s Northwest Excellence in Journalism contest.

Panelists from different areas of mental health care speak at the Herald Forum about mental health care on Wednesday, May 31, 2023 in Snohomish, Washington. (Olivia Vanni / The Herald)
At panel, mental health experts brainstorm answers to staff shortages

Workforce shortages, insurance coverage and crisis response were in focus at the Snohomish forum hosted by The Daily Herald.

Kamiak High School is pictured Friday, July 8, 2022, in Mukilteo, Washington. (Ryan Berry / The Herald)
Kamiak football coach fired amid sexual misconduct investigation

Police believe Julian Willis, 34, sexually abused the student in portable classrooms on Kamiak High School’s campus.

Compass Health’s building on Broadway in Everett. (Sue Misao / The Herald)
Compass class teaches first aid — for mental health

A one-day course hosted in Snohomish County is designed to triage behavioral health challenges: “This gave me many more tools.”

The Wilderness Land Trust transferred a 354-acre property straddling the Wild Sky and Henry M. Jackson Wilderness Areas to public ownership, adding it to the designated wilderness areas. (The Wilderness Land Trust)
Wild Sky Wilderness grows 345 acres, as transfer chips at private land

The Wilderness Land Trust announced it had completed a transfer near Silvertip Peak to the U.S. Forest Service.

Most Read