Stocks Post Triple-Digit Gains

N E W  Y O R K, July 12, 2001 -- Stocks soared today, posting gains unseen in nearly two months, as big names such as Microsoft and General Electric came out withunexpected good news of growth, surprising investors accustomedto the drumbeat of earnings warnings and disappointments.

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"This shows how sensitive the market is to any good newsand even a lack of bad news," said Peter Gottlieb, vicepresident and portfolio manager at First Albany AssetManagement. "The market is going to hang its hat on any newsitem that could be construed positively."

Indeed, the market shrugged off a government report showingthe number of Americans lining up to receive first-time stateunemployment benefits last week reached its highest level since1992. Worries that a three-year economic slump would leaveArgentina unable to pay its debt also rolled off Wall Street.

The Dow Jones industrial average jumped 237.97 points, or2.32 percent, to close at 10,478.99, according to the latestdata, while the Nasdaq composite index leaped 103.64 points, or5.26 percent, to 2,075.68. The benchmark Standard & Poor's 500index rose 27.95 points, or 2.37 percent, to 1,208.13.

Microsoft said after Wednesday's close that it expectsquarterly revenues to grow, while General Electric reportedrecord results.

Today’s Movers and Shakers

Microsoft gained nearly 8 percent, or $5.10, to $71.60,while General Electric rose 5.4 percent, or $2.39, to $47.00.As components of the Dow, both companies together accounted forabout one-fifth of the average's gain.

Encouraging news also came from Yahoo Inc., one of the mostvisited Web sites, and Motorola Inc., the world's No. 2 mobilephone maker, each posting results that edged past analysts'lowered estimates. Yahoo shares climbed 7.2 percent, or $1.23,to $18.26, and Motorola gained nearly 16 percent, or $2.48, to$18.15.

Motorola climbed $2.08 to $17.75. The wireless technologyprovider expects to post a third-quarter loss and a slightfourth-quarter profit. Late Wednesday, Motorola posted asecond-quarter loss, but said the global semiconductor industryshould rebound next year.

Diversified manufacturer and electronics maker TycoInternational Ltd. rose 96 cents to $51.46. The company saidit is comfortable it will at least meet expectations for itsthird quarter, and will likely meet its full-year targets.

But biotechnology company IDEC Pharmaceuticals Corp.plunged $8.55 to $52.93. The company expects to report profitsin line with analysts' expectations, but sales for its drug fornon-Hodgkin's lymphoma disappointed investors.

Wal-Mart Stores Inc., the world's largest retailer, tackedon $2.04 to $50.89. The Dow component reportedbetter-than-expected June sales.

But teen apparel retailer Wet Seal Inc. fell $5.91 to$23.84. The company's sales dipped 0.6 percent in June from ayear earlier and it forecast second-quarter earnings will missestimates due to tough retailing conditions.

Mixed Economic Outlook

The Labor Department said initial jobless claims for theweek ended July 7 rose by 42,000 to 445,000. That far exceededthe slight decrease in claims that Wall Street economists hadexpected.

Argentina's blue-chip MerVal stock index fell ondoubts that spending cuts announced by the government would winpolitical support, traders said.

"I think we are trading in a bit of an economic void andpeople want to say that things don't matter, but they domatter. The global news is really still decaying and we don'tlive in a void," Vlack said. "So I am loving seeing this, but not believing it."

Wednesday’s Highlights

During Wednesday's session, the market wobbled betweengains and losses after tumbling to 12-week lows Tuesday. Adramatic slide in Argentine stocks, spurred by a debt crisis,worried some investors that ailing Latin American economiescould hurt sales of U.S. multinational companies.

The Dow Jones industrial average rose 65.38 points,or 0.64 percent, to 10,241.02 Wednesday. The NasdaqComposite Index gained 9.25 points, or 0.47 percent,to 1,972.04. But the broader Standard & Poor's 500 Index declined 1.34 points, or 0.11 percent, to 1,180.18.

The Associated Press and Reuters contributed to this report -->