Posted on: Saturday, December 13, 2003
Despite negative report, Dow again tops 10,000
By Meg Richards
Associated Press
Generally strong economic news and positive outlooks from companies such as United Technologies Corp. and Coca-Cola Co. helped keep the Dow index of 30 actively traded stocks in the positive range for a third week.
"The real resistance level now will be 10,150," said Tim Smalls, a trader at SG Cowen Securities. "People are still very skeptical after losing money over the last four years, but this market is slowly winning them over."
Wall Street welcomed a government report that wholesale prices declined more than expected, suggesting inflation remains well under control, and appeared unconcerned about news that the trade deficit had widened slightly. Stocks stumbled a bit after a survey by the University of Michigan said consumer confidence was on the wane, but pushed higher by the end of the session.
The university's preliminary report for December was said to have shown a sharp decrease in consumer sentiment, to 89.6 from 93.7 in November. Analysts had forecast a reading of 95.2.
"Of the three reports, that was the most important and probably dampened some of the enthusiasm that surfaced yesterday with the retail sales report," said Lynn Reaser at Banc of America Capital Management.
The Labor Department reported a 0.3 percent drop in the Producer Price Index, which measures prices of goods before they reach stores. Economists had forecast a 0.1 percent rise. The reading supported the belief that inflation is staying in check, and bolstered hopes interest rates will stay low.
Separately, the Commerce Department said the trade deficit rose to $41.77 billion in October. That was up 1 percent from September's $41.34 billion.
Advancers outnumbered decliners about 2 to 1 on the New York Stock Exchange. Consolidated volume was lighter, with 1.57 billion shares traded, compared with 1.82 billion shares on Thursday.
NEW YORK — The Dow Jones industrial average closed above the 10,000 milestone for a second day yesterday as investors shrugged off a downbeat report on consumer sentiment to push stocks higher.
