Market Green, But Will Economic Data Sway Fed?
Tech led the early sell off, as well as the rebound, as volatility returned
to the markets. The lows were made in the morning after poor existing home
sales, durable goods reports and jobless claims, fueling speculation that the
Fed may lower rates by .50 in November. Further pressure came from the ECB, who
decided to leave rates unchanged. By mid morning, with the bulls in charge, the
market seemed to focus on the prospect of a recovery in 2002. By mid-afternoon,
all averages had turned green and remained up to close well.
The Dow closed at 9444.22, up 98.60, and the S&P 500 closed 1097.46, up
12.26 — above its Sept. 11 highs for the first time. Today’s close has both
indices bumping up against their 50-day moving average. In its second close
above its 50-day moving average, the Nasdaq gained 37.85 to close at 1769.39.
Strong sectors included biotech
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semiconductors
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up 7.61%.
Weak sectors were pharmaceuticals
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both down slightly.
After reporting a Q3 that topped expectations yesterday, Chiron
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rose 5.30, to close at 52.30. The company also guided guided higher for next
year.
Partially as a result of claims from the
Sept. 11 terrorist attacks,
insurer American International Group
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is planning rate increases of as much as 50%. AIG rose .09 to 83.89.
Cisco rival Foundry Networks
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FDRY closed at 9.86, down 1.16.
Tomorrow the Pentagon will award the largest contract in its history, for the
Joint Strike Fighter. Boeing
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running for the work. BA rose 1.66 to close at 35.90, and LMT fell .80, closing
at 48.90. Options trading in both companies was heavy.
Microsoft
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1.24 to 62.56.