Posted on: Wednesday, October 27, 2004
Bargain hunting lifts stocks despite doubts
By Meg Richards
Associated Press
NEW YORK — Wall Street strode higher yesterday, rallying along with insurance stocks on Marsh & McLennan Cos. Inc.'s decision to fire its chief executive in the face of an ongoing probe. Blue chips added 138 points as relief that the investigation would not result in criminal charges against the company offset higher oil prices and weak economic data.
Worries about job prospects drove consumer confidence lower for a third consecutive month, according to the latest reading by the Conference Board. The 3.9-point slide in the group's Consumer Confidence Index was steeper than expected.
Uncomfortably high energy prices are another potential pressure on consumer spending. Light, sweet crude for December delivery settled 63 cents higher at $55.17 on the New York Mercantile Exchange.
"Pick your uncertainty. You have oil. You have elections. We need to pop some of these bubbles of uncertainty before we can go anywhere," said Bill Groenveld, head trader for Finance Investments. "But look at how we've held in despite all this stuff. We got a strong market once you move these things out of the way."
Advancing issues outnumbered decliners by about 3 to 1 on the New York Stock Exchange on volume of 2.15 billion shares, compared to 1.73 billion Monday.
Analysts attributed at least some of the day's trading to bargain hunting, as October winds to a close, marking the end of the fiscal year for many mutual funds — a time when managers reposition themselves and make new bets. This was reflected in improved performance in some beaten-down sectors, including financials, healthcare and pharmaceuticals.
