Stocks, optimism surge on unexpected earnings

• Hawai'i Stocks
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Associated Press

NEW YORK — Investors sent the Nasdaq composite and Standard & Poor's 500 indexes to their highest levels in three months today after better-than-expected earnings boosted optimism that corporate profits are improving.

Analysts said investors were also reassured by President Bush's comments indicating that Federal Reserve Chairman Alan Greenspan would likely be reappointed.

"If one pulls the camera back and sees the magnitude of growth and earnings reported thus far, it's relatively impressive against the backdrop of an economy that had effectively stalled while waiting for Operation Iraqi Freedom," said Charles G. Crane, strategist for Victory SBSF Capital Management.

The Nasdaq advanced 26.99, or 1.9 percent, to 1,451.36, the highest since Jan. 14, when it closed at 1,460.99. The S&P 500 index gained 19.36, or 2.2 percent, to 911.37, the best level since Jan. 16, when it finished at 914.60.

The Dow Jones industrial average, meanwhile, closed up 156.09, or 1.9 percent, at 8,484.99. It was the average's highest finish since March 21, when the blue chips closed at 8,521.97.

Investors have been carefully watching this week's earnings news as they await reports due out Friday on the gross domestic product and consumer confidence. Analysts say investors are looking for clear signs the economy will rebound by year's end.

Everest Re climbed $10.25, or 16.7 percent, to $71.70 after the reinsurer posted a jump quarterly earnings and raised its 2003 earnings estimate, citing improved conditions in the casualty market. The results also boosted other insurance companies.