Dow Rises in Wake of Report on Jobs
Stocks advanced for a fourth consecutive session Monday, though in light trading with many players absent because of the Yom Kippur holiday.
In other trading, the euro soared anew against the dollar. Bond yields pulled back.
On Wall Street, analysts said investors were optimistic following Friday’s government report showing that the economy posted a net gain in jobs in September, the first in eight months.
The Dow Jones industrial average closed up 22.67 points, or 0.2%, at 9,594.98, after surging 2.8% last week.
The Nasdaq composite index rose 12.89 points, or 0.7%, to 1,893.46, after soaring 4.9% last week. The Standard & Poor’s 500 index, up 3.3% last week, tacked on 4.50 points, or 0.4%, to 1,034.35.
Rising stocks outnumbered losers by about 2 to 1 on the New York Stock Exchange and on Nasdaq.
Many investors now are awaiting third-quarter corporate earnings reports, which are expected to show strong gains for many companies.
But Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co., said a further market advance may hinge on whether results “not just meet expectations, but beat expectations.”
In currency markets the dollar sank further against the euro after European Central Bank President Wim Duisenberg said a decline in the U.S. currency is “unavoidable” because of the record American trade deficit.
Many analysts believe the Bush administration wants the dollar to slide further to help U.S. exporters by making their products less expensive overseas.
The euro rose in New York to $1.171 from $1.157 Friday. The euro had weakened Friday after the U.S. employment report.
Gains for Europe’s common currency accelerated after the Bundesbank’s chief economist, Hermann Remsperger, said economic growth in Germany “should improve” in 2004, according to Bloomberg News
At the start of the year it took just $1.05 to buy one euro.
In the Treasury bond market yields eased after soaring on Friday, following the jobs report. The 10-year T-note yield dipped to 4.17% from 4.20% Friday.
Among Monday’s highlights:
* Most home builders’ shares rallied. Ryland jumped $2.75 to $81, Centex gained $3.14 to $86.85 and KB Home was up $1.79 to $65.19.
* Buyers returned to Internet-related shares, including Priceline.com, up $1.47 to $32.66; AskJeeves, up $1.85 to $20.64; and Sohu.com, up $1.57 to $34.95.
* Knight Trading soared $1.85 to $13.95 after the stock-trading firm said third-quarter earnings could be double what analysts had expected. Also gaining were Ameritrade, up 96 cents to $13.30, and E-Trade, up 37 cents to $10.22.
* Gold, which slumped on Friday, rebounded somewhat. Near-term futures in New York rose $3.30 to $372.70 an ounce.
Market Roundup, C8-9
