NEW YORK, (Reuters):
US STOCKS climbed yesterday, leading the market higher for seven out of the past eight sessions, as Wall Street's recent turnaround helps mend tattered investor confidence.
"I think the mood is much improved," said Rick Meckler, president of investment firm LibertyView, which oversees about US$1 billion. "It certainly has been a very powerful move up to this point. And for the first time, it was significant enough to make people again start to feel comfortable that we may have established a bottom for the next foreseeable period."
The market has wrapped up two straight weeks of gains and the blue-chip Dow has jumped more than 13 per cent in the recent run-up. Investors are hoping an end to the bear market is in sight after stronger-than-expected earnings out of titans like International Business Machines Corp. and Citigroup Inc.
Investors are gearing up for another hectic week of earnings. So far, 215 companies in the Standard & Poor's 500 have posted quarterly earnings, according to Thomson First Call. Sixty per cent of those have topped Wall Street's expectations higher than the historical average of 58 per cent, according to the research firm.
The blue-chip Dow Jones Industrial average rallied 158 points, or 1.9 per cent, to 8,480, after a more than 1.1 per cent loss earlier. The tech-loaded Nasdaq Composite was up 16 points, or 1.29 per cent, at 1,304, after falling more than 1.50 per cent earlier. The broad Standard & Poor's 500 moved up 11 points, or 1.26 per cent, to 895.
The market had slumped earlier in the day after a key indicator of US economic activity fell for the fourth month in a row in September. The Conference Board said the US index of leading economic indicators fell 0.2 percent last month after a 0.1 per cent drop in August.
But investors shrugged off the weak economic data as optimism in the market grows and war fears ease. World oil prices plunged yesterday on signs the United States was ready to compromise over a UN resolution on Iraq, cooling fears of an imminent strike on Baghdad.
Financial heavyweight, J.P. Morgan Chase & Co. Inc., rallied $1.23, or more than 6 per cent, to $20.21 and led the Dow higher. Its stock rose on rumours Bank One Corp. would buy the bank, which is struggling in the weak market, but analysts doubted the deal would happen. Bank One edged down 21 cents to $38.67.
A J.P. Morgan spokeswoman declined to comment. A Bank One spokeswoman said it was against the bank's policy to comment on rumours.
