Wall Street ends week with gains


Associated Press

NEW YORK – Wall Street went on a buying spree today, 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 industrials and Nasdaq composite each had solid triple-digit gains until the afternoon but gave up some ground before the close, partly because of the continuing uncertainty from the presidential election.

The Dow closed up 95.55 at 10,712.91, a 0.9 percent gain, according to preliminary calcuations, after spiking more than 185 points.

Broader measures also advanced, particularly the Nasdaq, rising 164.07 to 2,916.73. The Standard &Poor’s 500 index rose 26.20 to 1,369.75.

Stocks got a lift from the Labor Department’s report that job growth remained weak in November for the second straight month, helping 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.

“It’s not a bad looking market,” said Larry Rice, chief investment officer at Josephthal &Co. “Usually you have a rally and it’s a bunch of blue chips or big Nasdaq stocks and today and yesterday the breadth was actually broad and pretty decent.”

Tech stocks surged ahead despite a warning late Thursday from Intel, the latest high-profile tech company to forecast an earnings slowdown. Intel was up $1.63 at $33.94 after announcing that its fourth-quarter revenues would be flat due to slowing demand for PCs.

Motorola, which had warned late Wednesday, was 10 percent higher, gaining $1.81 to $19.50. Other tech bellwethers also fared well. Oracle was up $1.75 at $30.06, and Cisco Systems was up $2.47 at $52.41.

Over the past few months, warnings such as Intel’s prompted massive selling on Wall Street. Analysts said the market’s different reaction today showed investors were taking the warnings in stride, and may be viewing the technology sector as being oversold.

Despite the overall gains in the tech sector, there were some notable exceptions to the updraft. Sun Microsystems was also off $3.88 at $38.94.

The surge in high-tech helped lift financial stocks as well, but other sectors were not sharing in the advance. Health care stocks were mainly lower, as were consumer staple makers and utilities. The three sectors are popular with investors in times of uncertainty, but Wall Street wasn’t interested today.

Procter &Gamble was off $2.31 at $71.25; Merck fell $2.13 to $89 and Duke Energy slipped 88 cents to $85.75.

But Rice, the Josepthal analyst, 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 were ahead of decliners by 2 to 1 on the New York Stock Exchange, where volume came to 944.88 million shares, ahead of the 878.06 million shares at the same time Thursday.

The Russell 2000 index rose 13.17 to 474.27.

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.

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

Kim Skarda points at her home on a map on Thursday, June 20, 2024 in Concrete, Washington. A community called Sauk River Estates has a very steep slope above it. There is a DNR-approved timber sale that boarders the estate properties, yet they were not consulted about the sale before approval. The community has already appealed the sale and has hired their own geologist to conduct a slope stability report at the site. (Annie Barker / The Herald)
Beneath steep slope, Concrete neighbors fear landslides from logging above

Nielsen Brothers plans to cut 54 acres of timber directly behind the community of 83 homes. Locals said they were never consulted.

Law enforcement respond to a person hit by a train near the Port of Everett Mount Baker Terminal on Thursday, June 27, 2024 in Mukilteo, Washington. (Annie Barker / The Herald)
2 killed in waterfront train crashes were near Mukilteo ‘quiet zone’

In June, two people were hit by trains on separate days near Mukilteo Boulevard. “These situations are incredibly tragic,” Everett’s mayor said.

Rob Plotnikoff takes a measurement as a part of the county's State of Our Waters survey at Tambark Creek in Bothell, Washington on Monday, July 1, 2024. (Annie Barker / The Herald)
Snohomish County stream team bushwhacks a path to healthier waterways

This summer, the crew of three will survey 40 sites for the State of Our Waters program. It’s science in locals’ backyards.

Logo for news use featuring the municipality of Mountlake Terrace in Snohomish County, Washington. 220118
4th suspect arrested after Mountlake Terrace home robbery

Police arrested Taievion Rogers, 19, on Tuesday. Prosecutors charged his three alleged accomplices in April.

A 10 acre parcel off of Highway 99, between 240th and 242nd Street Southwest that the city of Edmonds is currently in the process of acquiring on Monday, July 10, 2023 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds ditches $37M Landmark public park project off Highway 99

The previous mayor envisioned parks and more in south Edmonds, in a historically neglected area. The new administration is battling budget woes.

Edmonds school official sworn in as Mount Vernon supe

Victor Vergara took his oath of office last week. He was assistant superintendent of equity and student success in Edmonds.

Former president Donald Trump is seen with a bloody ear as he is assisted off the stage during a campaign rally in Butler, Pa., on Saturday. MUST CREDIT: Jabin Botsford/The Washington Post
Pops, screams and then blood: On the scene at the Trump rally shooting

Isaac Arnsdorf, Jabin Botsford | The Washington Post BUTLER, Pa. - The… Continue reading

Biden, Democrats, Republicans denounce shooting at Trump rally

Reaction pours in from government leaders

A bloodied Donald Trump is surrounded by Secret Service agents at a campaign rally in Butler, Pa, on Saturday, July, 13, 2024. The former president was rushed off stage at rally after sounds like shots; the former president was escorted into his motorcade at his rally in Butler, Pa., a rural town about an hour north of Pittsburgh. (Doug Mills/The New York Times)
Trump rally shooting investigated as assassination attempt

President Joe Biden gave a brief televised statement, condemning the violence as “sick.”

Man charged with hate crime in knife attack at Ezell’s in Edmonds

The suspect, 47, waved a knife at two workers while yelling about getting rid of “the Hispanics,” charging papers say.

Firefighters and EMTs with Sky Valley Fire tour Eagle Falls while on an observational trip on Wednesday, July 10, 2024, near Index, Washington. (Jordan Hansen / The Herald)
Beautiful but deadly: Drownings common at Eagle Falls, other local waters

Locals and firefighters are sounding the alarm as Eagle Falls and the Granite Falls Fish Ladder have claimed five lives this year.

A view of the south eastern area of the Lake Stevens that includes lakeshore and UGA that is a part of the city's annexation area on Thursday, Dec. 31, 2020 in Lake Stevens, Wa. (Olivia Vanni / The Herald)
Lake Stevens fight to take over sewer district could end soon

The city and sewer district have been locked in a yearslong dispute. A judge could put an end to the stalemate this month.

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.