Investors boost stocks on late rally
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By Amy Baldwin
Associated Press
NEW YORK — Wall Street investors began the new year cautiously today, putting off buying until the last hour of trading but still giving stocks a respectable advance.
While tech stocks traded higher for much of the day, blue chips suffered profit-taking after weeks of gains. Part of investors' careful approach came from uncertainty over precisely when in 2002 business conditions will improve, analysts said.
A mixed economic report that said manufacturing activity shrank in December, although not as much as expected, failed to trigger an earlier upturn. Lighter trading volume because of the New Year's holiday also contributed to today's slow start.
"The manufacturing orders were favorable; they did give a bit of a boost to the market. But the market is wrestling with attempts to find a footing after a turbulent year and amid light trading," said Alan Ackerman, executive vice president of Fahnestock & Co.
The Dow Jones industrial average finished up 51.90, or 0.5 percent, at 10,073.40, after falling as much as 85 earlier, according to preliminary calculations. The Dow managed to end 2001 above 10,000.
The broader market was also higher. The Nasdaq composite index rose 28.86, or 1.5 percent, to 1,979.26, and the Standard & Poor's 500 index advanced 6.59, or 0.6 percent, to 1,154.67.
Analysts said the market was pleased to hear the Institute of Supply Management report its index of business activity rose to 48.2 in December from 44.5 in November. Analysts had been expecting a reading of 46. An index above 50 signifies growth in manufacturing, while a figure below 50 shows contraction.
