Nasdaq Ends Up 104; Dow Gains 11
NEW YORK (AP) _ Stocks rebounded Monday as bargain hunters returned to the market to pick up blue chip technology issues following last week’s big decline.
But investors remained uneasy about corporate profits and inflation, a combination that caused stocks to tumble on Friday.
At the close on Wall Street, the Dow Jones industrial average was up 10.81 at 10,521.98, according to preliminary calculations. The Dow lost nearly 75 points Friday and was down 2 percent last week.
The Nasdaq was up 103.98 at 3,767.98 Monday after dropping more than 10 percent last week. The Standard & Poor’s 500 Index was up 8.78 at 1,428.67
``I think this is a reaction to last week’s selloff,″ said Barry Berman, head trader for Robert W. Baird & Co in Milwaukee.
He said investors remain nervous about inflation and whether Federal Reserve policymakers later this month will implement their seventh interest rate hike since June 1999.
``Up until last week it was pretty much assumed the Fed would not do anything. But now that is in question,″ Berman said.
The markets were still already nervous about higher rates before Friday’s stronger-than-expected report on the second-quarter gross domestic product intensified inflation fears and led to renewed selling. To get a better idea of where the economy and inflation stand, investors will be closely watching reports this week on consumer spending, new home sales, manufacturing and retail sales.
Leading the Dow higher Monday ware Hewlett-Packard, up $2.25 at $112.438 and Citigroup, up $2.25 at $70.563.
Chip makers and Internet and computer companies lifted the Nasdaq. Those included Texas Instruments, up $1.25 at $58.75, Oracle, up $2.813 at $75.188 and eBay, up $3.188 at $50.
VISX, the laser vision system maker that has used in surgery on Tiger Woods and other celebrities, rose $3.125 to $25.188 after reports that financier Carl Icahn plans to acquire an 11 percent stake in the company.
The Russell 2000 index was up 4.30 at 494.52.
Advancing issues outnumbered decliners by a 5-to-3 margin on the New York Stock Exchange, where volume came to 925.21 million shares, down from Friday’s pace.
Overseas, Japan’s Nikkei stock average fell 0.70 percent, Germany’s DAX index was up 0.67 percent, Britain’s FT-SE 100 was up 0.47 percent, and France’s CAC-40 was up 1.98 percent.
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