Stocks End Higher on Bargain-Hunting
N E W Y O R K, May 31 -- Stocks clambered higher, breaking a three-session losing streak, as investors took advantage of a grim sell-off a day ago and snapped up batteredshares.
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The Nasdaq composite index rose 26.07 points, or1.25 percent, to end at 2,110.57, according to the latest data,while the Dow Jones industrial average added 39.30points, or 0.36 percent, to 10,911.94. The benchmark Standard &Poor's 500 index was up 7.76 points, or 0.62 percent, to1,255.84.
"We have had a weak market in the last couple of days and Ithink people are saying, 'Hey, I have some cash sitting on thesidelines. Let's put some to work,"' said John Forelli, seniorvice president at Independence Investment Associates Inc.,which oversees $20 billion.
On Wednesday, the leading market indexes fell to two-weeklows.
For the month of May, the Nasdaq slipped 0.3 percent, theDow was up 1.6 percent, and the S&P 500 was up 0.5 percent.
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Buyers' enthusiasm on the last trading day in May was heldback after the government reported that the number of Americanssigning up for first-time unemployment benefits rose last weekto the highest level in a month. In an indication the pace ofhiring has fallen off, the number of people continuing to claimbenefits were the highest since November 1993.
"The jobless numbers, after turning better for a couple ofweeks, are now turning worse again, and that is a significantconcern," said Jay Mueller, economist and portfolio manager atStrong Capital Management, which oversees $45 billion. "Itmakes me concerned the unemployment situation is not ready tobottom and we have several months of deterioration ahead ofus."
Wall Street is now bracing for the key May unemploymentnumbers, set for release Friday. The report is expected toshow more job losses, as the economy struggles to pull out of aslowdown that began late last year.
The report will likely garner close attention from the Fed,which has left the door open for further interest-rate cutseven after an aggressive five reductions so far this year. Thefed funds rate is now at 4 percent, the lowest level in sevenyears.
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