Stocks Close Higher

N E W  Y O R K, July 9, 2001 -- Stocks rose as investors, clinging to hopes that corporate scorecards couldhint at a recovery in profits later in the year, crept backinto the market after a last week's harsh sell-off.

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Volume was lighter than usual as Wall Street hesitated tomake big bets before the second-quarter earnings reportingperiod swings into high gear later this month.

"Next week is when earnings start to roar in and that'swhat most people are waiting for," said Michael Lyons, listedequities trader for Morgan Stanley. Still, "some of thesestocks have gotten beaten up to a point that money managerswill get involved."

The Nasdaq Composite Index gained 22.55 points, or1.13 percent, at 2,026.71, recovering somewhat from a 7percent slide last week.

The blue-chip Dow Jones industrial average rose46.72 points, or 0.46 percent, to 10,299.40. AT&T Corp.,which received an unsolicited $44.5 billion bid from cablecompany Comcast Corp. for its broadbandunit, led the blue-chip gauge higher with a $1.98 gain at$18.70.

The broader Standard & Poor's 500 Index was up 8.19points, or 0.69 percent, at 1,198.78.

About 1.04 billion shares changed hands on the New YorkStock Exchange, according to preliminary figures. About 1.38billion shares traded on the Nasdaq, less than June's dailyaverage volume of 1.7 billion.

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Many analysts were skeptical of the rally after the marketended the first week of the third quarter sharply lowerFriday on a slew of profit warnings.

"Today has been a little bit surprising. We have had someupside reaction — which very few people expected," said AlanAckerman, executive vice president at brokerage Fahnestock &Co. "I think the real pop today is just that we went down sosharply on Friday. There is a bit of bargain hunting going on,but I think the mood remains extremely cautious."

AT&T Corp., which received an unsolicited $44.5billion bid from cable company Comcast Corp. for its broadband unit, jumped $1.99 to $18.71 and was the most-active stock on the New York Stock Exchange.

Comcast, the No. 3 U.S. cable-television company, lost$3.27 to $39.01. Comcast said it made the offer for AT&TBroadband after months of talks with AT&T failed. AT&T said ithad no plans to sell.

AT&T Wireless Group Inc., the No. 3 U.S. wirelessservices firm, shed 62 cents to $16.53. As expected, AT&T Corp.split off its wireless unit into a separate, independentcompany, marking a major step in the telephone andcable giant's restructuring.

Amid other merger news, International Game Technologythe world's No. 1 slot machine maker, said it agreedto acquire rival Anchor Gaming in a deal valued atabout $1.365 billion.

IGT slipped 73 cents to $58.47, while Anchor Gaming gained$2.17 to $56.08.

EMC Corp. was among stocks that recovered somewhatfrom steep sell-offs on Friday. The stock rose $1.03 to $22.63.On Friday the data-storage company warned earnings will fall asmuch as 76 percent below estimates as cost-cutting failed tojump-start demand.

NCR Corp., which makes computer systems for banksand retail stores, surrendered $6.23 to $38.54. The companywarned its earnings and revenues will be lower than expectedbecause its customers put off purchasing decisions in its datawarehousing unit.

Investors will be poring over Corporate America's financialreports as the second-quarter earnings season gathers speedthis week.

Among technology companies issuing quarterly results thisweek are wireless giant Motorola, Internet firm Yahoo, both on Wednesday, and Web gear company Juniper Networks, on Thursday.

Optimists are hoping that interest rate cuts by the FederalReserve this year will ultimately lift the slowing economy andcorporate profits. The Fed has cut rates six times so far in2001.

Today's economic report is not expected to move markets.The Federal Reserve's consumer credit data report, according toa Reuters poll, is expected to show that consumer installmentcredit grew by $9.9 billion in May, down from growth of $13.9billion in April.

After a period of silence following their last rate cut,Fed officials will return this week to offer their latest viewson the economy. Fed Bank of Chicago President Michael Moskow isto speak publicly on the economy and the Chicago Fed's outreachprograms at 2 p.m. ET.

Friday’s Trading

The blue-chip Dow Jones industrial average tumbled 227.18points, or 2.17 percent, to 10,252.68 on Friday, its lowestclose in almost three months.

The Nasdaq composite index fell for a fourth straightsession, dropping 75.95 points, or 3.65 percent, to 2,004.16.The broader S&P 500 Index dropped 28.65 points, or 2.35percent, to 1,190.59.

For the week, the Nasdaq slumped 7.2 percent, while the S&P500 dropped 2.8 percent and the Dow slid 2.4 percent.

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