By HOPE YEN
AP Business Writer
June 2, 2003, 1:46 PM EDT
Better-than-expected manufacturing data powered Wall Street higher Monday as investors grew confident the economy is improving. The Dow Jones industrials climbed more than 140 points to above the 9,000 mark, the first time since December.
"This is a market that continues to look for evidence the recovery is happening quicker than anticipated, and the manufacturing number gives us further evidence of that," said John C. Forelli, portfolio manager for Independence Investment LLC in Boston.
"The economic activity is slow to improve but the market is optimistic," he said. "For the market, the glass is half-full -- as opposed to three-quarters empty as it had been for a while."
In the early afternoon, the Dow was up 149.93, or 1.7 percent, at 9,000.19, following a weekly advance of 2.9 percent last week. The last time the Dow rose above 9,000 during the day was Dec. 2, 2002; the last time the blue chips closed above 9,000 was Aug. 22, 2002, when they stood at 9,053.64.
The broader market was also sharply higher. The Nasdaq composite index advanced 24.11, or 1.5 percent, to 1,620.02, after gaining 5.7 percent last week. The Standard & Poor's 500 index rose 15.10, or 1.6 percent, to 978.69, having risen 3.3 percent last week.
The Institute for Supply Management reported that its manufacturing index was 49.4 percent last month, up from 45.4 in April. A reading below 50 means manufacturing activity is slowing; still, the figure was better than the 48.5 that economists were expecting.
However, the Commerce Department said spending on construction projects dipped by 0.3 percent in April from March to a seasonally adjusted annual rate of $862.6 billion. It was the third straight month that spending fell and was weaker than the 0.2 increase analysts were expecting.
Stocks have surged in recent weeks on a wave of better-than-expected earnings and positive economic data. Analysts say investors are increasingly upbeat about an economic rebound by year's end, although the market is still vulnerable to sharp declines on profit-taking.
"At some point, we're going to have to see very strong economic and earnings news to keep the market moving forward," Forelli said. "We'll have to see more optimism coming from companies in second-quarter earnings reports than we did at the end of the first quarter." Twenty-eight of the 30 stocks making up the Dow Jones industrials were higher, including General Motors, which advanced $1.48 to $36.81. The two decliners were Johnson & Johnson, which fell 15 cents to $54.20, and Procter & Gamble, which lost 24 cents to $91.58.
ImClone surged $7.21 to $35.71 after the biotech company's cancer drug Erbitux showed effectiveness in clinical trials.
Genentech climbed $5.83 to $68.44 after researchers said the biotech company's experimental drug Avastin modestly lengthened survival for colon cancer patients in clinical trials.
AMR rose 67 cents to $7.01 after Goldman Sachs raised the parent of American Airlines' stock rating to "outperform" from "in-line."
Advancing issues outnumbered decliners nearly 3 to 1 on the New York Stock Exchange. Volume was heavy.
The Russell 2000 index, a barometer of smaller company stocks, rose 6.12, or 1.4 percent, to 447.12.
Overseas, Japan's Nikkei stock average finished 1.5 percent higher Monday. In Europe, France's CAC-40 rose 1.9 percent, Britain's FTSE 100 advanced 2 percent and Germany's DAX index gained 2.4 percent.
AP Business Writer
June 2, 2003, 1:46 PM EDT
Better-than-expected manufacturing data powered Wall Street higher Monday as investors grew confident the economy is improving. The Dow Jones industrials climbed more than 140 points to above the 9,000 mark, the first time since December.
"This is a market that continues to look for evidence the recovery is happening quicker than anticipated, and the manufacturing number gives us further evidence of that," said John C. Forelli, portfolio manager for Independence Investment LLC in Boston.
"The economic activity is slow to improve but the market is optimistic," he said. "For the market, the glass is half-full -- as opposed to three-quarters empty as it had been for a while."
In the early afternoon, the Dow was up 149.93, or 1.7 percent, at 9,000.19, following a weekly advance of 2.9 percent last week. The last time the Dow rose above 9,000 during the day was Dec. 2, 2002; the last time the blue chips closed above 9,000 was Aug. 22, 2002, when they stood at 9,053.64.
The broader market was also sharply higher. The Nasdaq composite index advanced 24.11, or 1.5 percent, to 1,620.02, after gaining 5.7 percent last week. The Standard & Poor's 500 index rose 15.10, or 1.6 percent, to 978.69, having risen 3.3 percent last week.
The Institute for Supply Management reported that its manufacturing index was 49.4 percent last month, up from 45.4 in April. A reading below 50 means manufacturing activity is slowing; still, the figure was better than the 48.5 that economists were expecting.
However, the Commerce Department said spending on construction projects dipped by 0.3 percent in April from March to a seasonally adjusted annual rate of $862.6 billion. It was the third straight month that spending fell and was weaker than the 0.2 increase analysts were expecting.
Stocks have surged in recent weeks on a wave of better-than-expected earnings and positive economic data. Analysts say investors are increasingly upbeat about an economic rebound by year's end, although the market is still vulnerable to sharp declines on profit-taking.
"At some point, we're going to have to see very strong economic and earnings news to keep the market moving forward," Forelli said. "We'll have to see more optimism coming from companies in second-quarter earnings reports than we did at the end of the first quarter." Twenty-eight of the 30 stocks making up the Dow Jones industrials were higher, including General Motors, which advanced $1.48 to $36.81. The two decliners were Johnson & Johnson, which fell 15 cents to $54.20, and Procter & Gamble, which lost 24 cents to $91.58.
ImClone surged $7.21 to $35.71 after the biotech company's cancer drug Erbitux showed effectiveness in clinical trials.
Genentech climbed $5.83 to $68.44 after researchers said the biotech company's experimental drug Avastin modestly lengthened survival for colon cancer patients in clinical trials.
AMR rose 67 cents to $7.01 after Goldman Sachs raised the parent of American Airlines' stock rating to "outperform" from "in-line."
Advancing issues outnumbered decliners nearly 3 to 1 on the New York Stock Exchange. Volume was heavy.
The Russell 2000 index, a barometer of smaller company stocks, rose 6.12, or 1.4 percent, to 447.12.
Overseas, Japan's Nikkei stock average finished 1.5 percent higher Monday. In Europe, France's CAC-40 rose 1.9 percent, Britain's FTSE 100 advanced 2 percent and Germany's DAX index gained 2.4 percent.
it has been a good day for me here at work. 
