US stocks rise
US investors wavered between jitters about a possible war with Iraq and optimism from upbeat economic news for much of the day today, finally sending the market’s gauges higher in the final minutes of trading.
But the gains were not enough to save most stocks from their third straight monthly declines.
Analysts remain dubious of Wall Street’s ability to forge an upward path in the face of uncertainty about Iraq.
Rallies have been short-lived so far this year, often lasting only a day or fizzling out midway through a session. Investors are expected to continue holding back until it is clearer if and when there will be a war with Iraq and what impact it will have on the US economy.
The Dow Jones industrial average inched up 6.09, or 0.1%, to 7,891.08. Earlier, the Dow rose as much as 80.81. For the week, the Dow lost 1.6%.
The broader market also rose today, but posted weekly declines. The Nasdaq composite index advanced 13.60, or 1%, to 1,337.54. For the week, the Nasdaq fell 0.95.
The Standard & Poor’s 500 index advanced 3.87, or 0.5%, to 841.15, but had a weekly loss of 0.8%.
Most stocks ended the month with their third straight monthly declines as the Dow shed 2% and the S&P fell 1.7. However, the Nasdaq managed to gain 1.3 in February.
Wall Street was encouraged by news that the US economy, as measured by gross domestic product, grew at a 1.4% rate in the fourth quarter – twice as fast as the government first estimated last month. While the performance, reported by the Commerce Department, is still considered below par, it showed that the economic recovery did not languish as much as previously thought.
But two other pieces of economic news were more lukewarm.
The Purchasing Management Association of Chicago reported that its index of business activity fell to 54.9 in February on a seasonally adjusted basis from 56.0 in January. Still, a reading above 50 indicates growth.
The index is considered a harbinger of the British Institute for Supply Management’s national survey on manufacturing, due to be released on Monday.
Technology was the market’s strong suit today with such winners as IBM, up 67 cents at 77.95, and Intel, up 56 cents at 17.26.
Among the losers, Gap fell 1.78 to 13.04 after the retailer reported that fourth-quarter profits met Wall Street’s forecast but warned that its performance for February missed expectations.
Advancing issues outnumbered decliners nearly 4 to 3 on the New York Stock Exchange, where trading volume was light.
The Russell 2000 index, the barometer of smaller company stocks, slipped 0.91, or 0.3%, to 360.52.
