Posted on: Tuesday, October 12, 2004
Earnings hopes raise stocks in light trading
By Bruce Meyerson
Associated Press
NEW YORK — Stocks drifted higher yesterday, brushing aside another record high for oil prices amid hopes the impending tide of third-quarter profit reports will override worries about a struggling economic recovery.
However, analysts were dubious the market could build much momentum on profit news alone.
"The big troika here is economic data, oil and the election, and those things are keeping a stranglehold on the market," said David Legeay, investment strategist for McDonald Financial Group. "Barring anything to the extreme in earnings season, we're just in a market now that will move sideways and in concert with economics, whether jobs data or retail sales data" and energy prices.
The Dow Jones industrial average rose 26.77, or 0.27 percent, a modest rebound following a drop of 1.35 percent last week.
The biggest movers on the Dow 30 were Home Depot Inc., up $1.05 to $40.07; Altria Group Inc., up 50 cents to $47.01; and American International Group Inc., up 58 cents to $67.48. Drug makers also lifted the Dow, with Merck & Co. rising 39 cents to $30.74 and Pfizer Inc. rising 51 cents to $30.31.
Advancing and declining issues were nearly even on the New York Stock Exchange. Volume was light, at 1.19 billion shares with many traders taking a long holiday weekend, compared to 1.63 billion Friday.
With no major economic or earnings data to steer market sentiment on Columbus Day, investors appeared to be betting that the quarterly reporting season might divert attention from Friday's disappointing employment report and rising fuel costs.
