- NEW YORK (Reuters)
- Stocks rose on Friday, with the market logging its second straight week
of gains as momentum from the recent surge off 5-year lows was slowed but
not halted by profit taking and mixed corporate earnings.
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- Software giant Microsoft Corp. shares rose 4.7 percent
after posting earnings that more than doubled. The company also raised
its outlook.
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- But other technology shares, including Web security firm
Check Point Software Technologies Inc., software maker Siebel Systems Inc.
and chip maker Broadcom Corp., sank on weak forecasts or analysts' calls.
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- Mixed economic data showed tame consumer-level inflation
in September and a record U.S. trade deficit in August, but the market
showed little interest in the numbers. U.S. consumer prices edged up 0.2
percent, as the cost of energy and cars jumped, but inflation elsewhere
in the economy was muted. The trade deficit widened in August to a record
$38.46 billion.
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- "The market was down this morning for no good reason
in particular but the comeback proves that people are willing to buy on
dips," said Peter Boockvar, equity strategist at Miller Tabak. "The
economy is still weak and there are fears over global geopolitics, but
the market is taking this leap of faith that things are not as bad as perceptions."
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- The tech-loaded Nasdaq Composite Index gained 15.57 points,
or 1.22 percent, to 1,287.86, boosted by Microsoft. The blue-chip Dow Jones
Industrial average rose 47.36 points, or 0.57 percent, to 8,322.40 and
the broad Standard & Poor's 500 Index added 5.19 points, or 0.59 percent,
to 884.39. All three fell in the morning, with the Dow down more than 100
points.
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- Investors have sent the market to higher closes six out
of the past seven sessions as better-than-expected earnings out of bellwethers
like computer maker International Business Machines Corp. and financial
heavyweight Citigroup Inc. sparked hopes that an end to the long bear
market is in sight.
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- Friday is the closest trading day to the 15th anniversary
of the stock market crash of October 19, 1987, when the Dow sank more than
22 percent. This was one of several crashes, also including the 1929 market
massacre, that give October the "jinx month" tag.
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- But according to the Stock Trader's Almanac, October
is also known as a "bear killer" when the tide turned in several
bear markets.
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- For the week, the Dow rose 6 percent, Nasdaq 6.4 percent
and the S&P 500 5.9 percent. The market had closed higher last week
as well, snapping a six-week losing streak.
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- "There is an urgency to participate among professional
managers," said A.C. Moore, chief investment strategist at Dunvegan
Associates. "Any time markets start to have more of a luster to them,
you will see that investment managers participate rather than not, or else
ultimately they are out of a job."
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- Decliners outnumbered advancers narrowly on the New York
Stock Exchange but gainers narrowly topped losers on Nasdaq. More than
1.42 billion shares changed hands on the Big Board and more than 1.66 billion
on Nasdaq in active trading.
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- Dow average component Microsoft rose $2.38 to $53.15.
The company topped estimates as sales surged on a new software licensing
plan and raised its full-year revenue and earnings outlook.
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- EBAY Inc. gained $1.81 at $59.96. The online auction
site posted earnings that surpassed forecasts, but some analysts said they
were disappointed with the company's new guidance for the fourth quarter
and for 2003.
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- Software maker Siebel slumped $1.09, or more than 15
percent, to $6.20. The company posted a third-quarter net loss, its first
in four years, and issued a current-quarter forecast below Wall Street's
consensus expectation.
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- Communications chip maker Broadcom lost $1.82 to $10.63.
The company reported a narrower quarterly loss as revenues rose almost
36 percent, but it cautioned current revenues will be flat from the third-quarter
and below estimates. Goldman Sachs cut Broadcom to "market outperform"
from "recommend list."
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- "There's a mixed reaction to the earnings. A lot
of traders are trying to trade the Microsoft news ... I think the rally
will continue," said Kathy Carey, trader, at Wedbush Morgan. "But
Siebel was not that positive and Goldman dropped Broadcom and the semiconductor
stocks are weak."
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- Internet security company Check Point sank $3.45 to $13.28
after posting lower profits and saying it sees fourth-quarter results flat
to slightly down from the third quarter.
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- Shares of Sprint Corp. rallied after the No. 3 U.S. long-distance
telephone company posted a third-quarter profit as cost-cutting efforts
helped offset weak demand for long-distance, wireless and data services.
Sprint FON Group , the telephone and data business, scrambled up $1.22
to $11.89. Sprint PCS, the wireless telephone unit whose stock trades separately,
rose 44 cents to $2.82, 18.4 percent.
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- Biogen Inc. said earnings fell as sharper competition
cut into sales of Avonex, a multiple sclerosis drug, but shares rose nearly
9 percent following news that Biogen had settled a dispute with drugmaker
Schering-Plough Corp. . Schering-Plough will resume royalty payments on
hepatitis drugs for which Biogen holds the patents. Biogen jumped $3.44
to $36.81 and Schering lost 46 cents to $18.94.
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- Oil services giant Schlumberger Ltd. ) climbed $2.99
to $40.69. It said Chairman and Chief Executive Euan Baird will retire
from the company on Feb. 1, 2003 and will be succeeded by President and
Chief Operating Officer Andrew Gould. Morgan Stanley upgraded Schlumberger
to "overweight" from "underweight" saying Gould's appointment
to the top spot gives it much increased confidence in the firm's strategic
outlook.
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