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Dow Rises 151 in Morning Trading

September 6, 2002

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NEW YORK (AP) _ Stock prices rose Friday after a report on the nation’s unemployment rate in August showed an unexpected improvement.

The Dow Jones industrials climbed more than 150 points in early trading. The increase came after a sharp decline on Thursday, which analysts attributed to a spate of bad news about the economy, including sluggish productivity growth and disappointing retail sales.

In early trading, the Dow was up 150.85, or 2 percent, to 8,434.55 after dropping 141 points on Thursday.

The broader market also moved higher. The Nasdaq composite index rose 36.75 points, or 3 percent, to 1,287.75. The Standard & Poor’s 500 index gained 16.05 points, or 2 percent, to 895.20.

The nation’s unemployment rate fell to 5.7 percent in August and companies added 39,000 new jobs, the fourth consecutive monthly increase. Analysts had expected the rate to stay at 5.9 percent or edge up slightly for August.

Shares of Intel were up $1.33, or 9 percent, to $16.44 on Nasdaq after the chip maker lowered its third-quarter sales estimates late Thursday, but not by as much as Wall Street had feared.

However, R.J. Reynolds Tobacco fell sharply after the company lowered its earnings forecast for the third quarter. Shares of R.J. Reynolds declined $3.80, or 7 percent, to $53.50 on the New York Stock Exchange.

The Russell 2000 index, the barometer of smaller company stocks, gained 5.12 points, or 1 percent, to 386.18.

Overseas, Japan’s Nikkei stock average finished Friday down 1 percent. In afternoon trading in Europe, Germany’s DAX index, France’s CAC-40 and Britain’s FTSE 100 were each up 2 percent.

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