DAILY MARKET ROUNDUP
Dow ends above 9,000 in 4th straight advance
By Amy Baldwin
Associated Press
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The gains were surprising given some bad news from DaimlerChrysler, which warned of a big loss in its struggling Chrysler division, and the fact that many analysts believe stocks were due for a pullback after weeks of heavy buying.
In its fourth consecutive advance, the Dow closed up 116.03, or 1.3 percent, to 9,038.98. It was the first time the Dow finished above 9,000 since Aug. 22, when it stood at 9,053.64.
In the past four sessions, the Dow has gained 327.80 points.
The market's broader indicators also climbed. The Nasdaq composite index, trading at levels not seen in more than a year, rose 31.09, or 1.9 percent, to 1,634.65.
The Standard & Poor's 500 index advanced 14.68, or 1.5 percent, to 986.24. It was also the S&P's fourth consecutive advance, this one bringing the total gained to 36.60.
Buyers have dominated the market for almost three months.
Since March 11, when the rallies began, the Dow has risen 20.1 percent, the Nasdaq has gained 28.6 percent and the S&P has increased by 23.2 percent.
The Institute for Supply Management reported yesterday that activity in the service sector grew at a faster-than-expected pace in May, marking the highest level in the indicator since the beginning of the year.
The ISM's non-manufacturing index jumped to 54.5 from 50.7 in April, while analysts had been expecting 51. Any figure above 50 indicates economic expansion.
The Labor Department reported yesterday that productivity, the amount of output per hour of work, rose at an annual rate of 1.9 percent in the first three months of the year, slightly stronger than the 1.6 percent growth rate estimated a month ago.
DaimlerChrysler fell 90 cents to $30.75 after the company warned that its Chrysler division will likely post an operating loss of about $1.2 billion for the second quarter.
Advancing issues outnumbered decliners more than 3 to 1 on the New York Stock Exchange. Consolidated volume totaled 2.10 billion shares, up from 1.87 billion on Tuesday.
The Russell 2000 index rose 7.36, or 1.7 percent, to 451.23.
