Stocks ended the day higher, concluding on the upswing a session with mixed corporate news, as positive comments from AOL Time Warner and Bear Stearns, among others, carried the day.
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The Nasdaq composite index gained 38.50 points, or 1.93 percent, to 2,031.16, according to the latest data, while the Dow Jones industrial average added 50.66 points, or 0.48 percent, to 10,647.33. The benchmark Standard & Poor's 500 index rose 10.56 points, or 0.87 percent, to 1,223.14.
"Not all the news out there is negative, or at least not as negative as people had feared," said Steve Fossel, a portfolio manager for Berger Associates, which oversees $8 billion.
AOL Lifts Media Stocks
Internet and media giant AOL Time Warner Inc. boosted media stocks after AOL's chief executive told Reuters at a conference in France that advertising revenues were stabilizing and the company remains on track to meet its 2001 financial targets. The stock rose $2.96, or 5.9 percent, to $52.80.
Bear Stearns, one of Wall Street's top firms, said its second-quarter operating earnings fell 21 percent from last year's near-record levels, but beat expectations as a strong bond market helped limit the damage from the beating meted out to its investment banking and stock trading. The stock gained $1.77, or 3.3 percent, at $55.13.
Leading the bad news was Tellabs. The telecommunications equipment maker fell $5.16, or 24.3 percent, to $16.04, after warning it would miss Wall Street earnings estimates by a wide margin due to a big drop in sales.
On Tuesday, Oracle's profit announcement provided a brief reprieve from the recent parade of grim earnings forecasts that have pummeled Wall Street. It was not enough to wipe away jitters completely, however, and by late afternoon, the rally had lost steam amid persistent worries about America's corporate profit meltdown.
The Nasdaq composite index initially jumped more than 3 percent but finished with a gain of just 4.03 points, or 0.2 percent, at 1,992.66. The tech-heavy market broke its first seven-session losing streak since December, 2000, according to MarketHistory.com.
The blue chip Dow Jones industrial average fell 48.71 points, or 0.46 percent, to 10,596.67, pressured by a drop in Honeywell.
The Standard & Poor's 500 Index clung to a slim gain of 4.15 points, or 0.34 percent, at 1,212.58.