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The Honolulu Advertiser

Posted at 11:53 a.m., Friday, February 28, 2003

Most stocks finish month on sour note

Hawai'i Stocks
Updated Market Chart

By Amy Baldwin
Associated Press

NEW YORK ­ Investors vacillated between jitters about a possible war with Iraq and optimism from upbeat economic news for much of the day today, finally sending the market's gauges higher in the final minutes of trading. The gains weren't enough to save most stocks from their third straight monthly declines.

Analysts remain dubious of Wall Street's ability to forge an upward path in the face of uncertainty about Iraq. And despite today's advances, the major indexes ended the week lower, snapping a two-week winning stretch.

"I don't think there are any bits of good news sufficient enough to really drive the market higher on a sustained basis," said Richard A. Dickson, senior market strategist at Lowry's Research Reports in Palm Beach, Fla.

Rallies have been short-lived so far this year, often lasting only a day or fizzling out midway through a session. Investors are expected to continue holding back until it's clearer if and when there will be a war with Iraq and what impact it will have on the U.S. economy.

The Dow Jones industrial average inched up 6.09, or 0.1 percent, to 7,891.08, according to preliminary calculations. Earlier, the Dow rose as much as 80.81. For the week, the Dow lost 1.6 percent.

The broader market also rose today, but posted weekly declines. The Nasdaq composite index advanced 13.60, or 1 percent, to 1,337.54. For the week, the Nasdaq fell 0.9 percent.

The Standard & Poor's 500 index advanced 3.87, or 0.5 percent, to 841.15, today, but had a weekly loss of 0.8 percent.

Most stocks ended the month with their third straight monthly declines as the Dow shed 2 percent and the S&P fell 1.7. However, the Nasdaq managed to gain 1.3 in February.

Wall Street was encouraged by news that the economy, as measured by gross domestic product, grew at a 1.4 percent rate in the fourth quarter ­ twice as fast as the government first estimated last month. While the performance, reported by the Commerce Department, is still considered below par, it showed that the economic recovery didn't languish as much as previously thought.

But two other pieces economic news were more lukewarm.

The Purchasing Management Association of Chicago reported that its index of business activity fell to 54.9 in February on a seasonally adjusted basis from 56.0 in January. Still, a reading above 50 indicates growth.

The index is considered a harbinger of the Institute for Supply Management's national survey on manufacturing.

A third report showed softening of consumers' attitude, but to a lesser degree than had been expected. The University of Michigan said its consumer sentiment index fell to 79.9 in February, down from 82.4 in January, but it was better than the 79.2 level economists expected.

Technology was the market's strong suit today with such winners as IBM, up 67 cents at $77.95, and Intel, up 56 cents at $17.26.

Gap fell $1.78 to $13.04 after the retailer reported that fourth-quarter profits met Wall Street's forecast but warned that its performance for February missed expectations.