Stock climb resumes despite Nokia warning, a day after Wall Street takes time to consolidate.
June 10, 2003: 10:24 AM EDT
NEW YORK (CNN/Money) - U.S. stock markets resumed their bullish ride early Tuesday, a day after Wall Street paused to consolidate and rethink the fundamentals behind its recent rally.
At around 10:00 a.m. ET, the Dow Jones industrial average (up 43.16 to 9023.16, Charts) was back above 9,000, with a gain of 0.8 percent. The Nasdaq composite (up 7.04 to 1611.01, Charts) and the S&P 500 index (up 3.49 to 979.42, Charts) followed closely behind.
Buyers returned to the market despite a second warning in a row from a big telecom player. Coming on the heels of a disappointing forecast by Motorola (MOT: down $0.02 to $8.66, Research, Estimates) Monday, Nokia (NOK: down $0.42 to $17.54, Research, Estimates), the world's largest maker of wireless handsets, said its second-quarter sales are likely to be at the low end of expectations. Just like Motorola, Nokia cited the weakening dollar and the outbreak of SARS for its troubles.
But while Monday's Motorola warning was enough to bring sellers into the broader market, Nokia's trimmed forecast only affected its stock and those of its closest competitors. Nokia shed less than 2 percent and Motorola was down less than 1 percent.
Some of the Dow's gains came from a 2.6 percent jump in Boeing (BA: up $0.94 to $34.11, Research, Estimates), which benefited from an upgrade by Banc of America Securities to "buy" from "neutral. " The firm also raised its price target on Boeing's stock, citing better business trends.
Geron (GERN: up $2.08 to $9.04, Research, Estimates) was another of the morning's big gainers, jumping nearly 2 percent after it received a U.S. patent number for the engineering of some stem cells, which it said could eventually lead to treatments for heart disease, cancer, spinal cord injury, Parkinson's disease and diabetes. Other drug stocks received a boost from the news as well.
Banc of America was not as generous with semiconductor stocks, downgrading several of them. KLA-Tencor (KLAC: down $0.87 to $47.13, Research, Estimates) and Applied Materials (AMAT: down $0.32 to $15.50, Research, Estimates) both suffered declines caused by the downgrades.
Market breadth was positive. Seven stocks rose for every three that fell on the New York Stock Exchange, on volume of 167 million shares. On the Nasdaq, the advance/decline ratio stood at six to four as 317 million shares changed hands.
Despite the stock market's return to strength, bonds rallied as well, with the 10-year Treasury note yield dropping to 3.22 percent as its price rose 14/32 of a point. The dollar also gained some ground against the euro and the yen.
The price of Brent crude oil fell 29 cents to $27.22 a barrel in London. Gold tumbled $6 to $356.60 an ounce in New York.
Stock markets in Europe were mixed. Asian markets finished their overnight trading session mostly lower.
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