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The Honolulu Advertiser

Posted at 11:49 a.m., Wednesday, June 12, 2002

Wall Street rallies following big selloff

Hawai'i Stocks
Updated Market Chart

By Amy Baldwin
Associated Press

NEW YORK – Wall Street managed a sharp snapback today, rising sharply despite allegations of insider trading at ImClone and more profit warnings. But while the Dow Jones industrials rose 100 points, analysts attributed much of the buying to technical factors, not a turnaround in investor sentiment. A cautious mood dominated the session following a big selloff yesterday. New charges of unethical business practices ­ this time, the arrest of former ImClone chairman and CEO Sam Waksal on insider trading charges ­ added to the market's ongoing uneasiness, as did a string of profit warnings from such companies as Safeway and Monsanto

The Dow Jones industrial average closed up 100.45, or 1.1 percent, at 9,617.71, according to preliminary calculations. The Dow fell 128.14 yesterday to its lowest close since Nov. 5, when it stood at 9,441.03.

Broader indicators also finished higher. The Nasdaq composite index rose 21.94, or 1.5 percent, to 1,519.12, having dropped 33.51 yesterday to its lowest close since Oct. 2.

The Standard & Poor's 500 index advanced 6.66, or 0.7 percent, to 1,020.26 following yesterday's loss of 17.14, which had brought the index to its lowest close since Sept. 26.

Among gainers, Dow industrial Procter & Gamble surged $4 to $93 after it raised its fiscal fourth-quarter earnings estimate, and Merrill Lynch upgraded its shares to "strong buy" from "buy."

Maytag climbed $2.97 to $45.27 after saying its second-quarter profits will beat analysts' expectations.

Advanced Micro Devices rose 34 cents to $9.67 after Prudential Securities raised its recommendation on the chip maker's shares to "hold" from "sell."

Poor earnings outlooks drove down other stocks. Safeway dropped $4.42 to $31.76 after the grocery store company reduced its second-quarter and fiscal year profit forecasts.

Declining issues narrowly outnumbered advancers 16 to 15 on the New York Stock Exchange. Volume was heavy at 1.72 billion shares, compared with 1.39 yesterday.

The Russell 2000 index, which tracks smaller company stocks, inched up 0.21 to 462.99, following yesterday's loss of 6.51.

Japan's Nikkei finished down 1.1 percent.