BOUNCING BACK; MARKET CLIMBS 232 POINTS, NEARLY ERASING LAST WEEK'S LOSS.Byline: Peter G. Gosselin The Boston Globe The U.S. stock market Monday all but erased e·rase tr.v. e·rased, e·ras·ing, e·ras·es 1. a. To remove (something written, for example) by rubbing, wiping, or scraping. b. its losses from last week's sharp fall, sending the Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. up 232 points and leaving many analysts uneasy that the swift recovery may be too much of a good thing. An overnight rebound in Asian markets, where last week's troubles began, and a seemingly seem·ing adj. Apparent; ostensible. n. Outward appearance; semblance. seem  ing·ly adv. unshakable conviction among investors that they should buy on dips or market declines drove the widely watched Dow up 3.1 percent to 7,674.4. That's a mere 41 points shy of where it was before its 554-point free fall Oct. 27, which prompted dark warnings of world financial upheaval and a coming bear market. ``The herd mentality Herd mentality describes how people are influenced by their peers to adopt certain behaviors, follow trends, and/or purchase items. Examples of the herd mentality include the early adopters of high technology products such as cell phones and iPods, as well as stock market trends, is alive and well,'' said David H. Thompson, director of funds management at BankBoston Corp. ``Asia triggered last week's collapse and now that Asia is back, we're back.'' Even market optimists said they were a little shaken by the swiftness of the turnaround, wondering aloud whether individual investors truly appreciate the risks of buying stocks. ``There's such a culture of equities in this country at this point that everybody wants the market to go up. We've become equity cheerleaders Notable cheerleaders
Even with the economy growing at a healthy 3.5 percent clip and most companies' profits continuing to beat predictions, ``it worries me to see things snap back quite this fast,'' Winters said. ``I would like to see people a little more scared,'' he said. LOCAL MOVERS Top 5 percentage movers in the Daily News/Bloomberg Index: COMPANY MONDAY CHANGE % CLOSE 1. Semtech Corp. 51 +4 7/16 9.53 Newbury Park 2. Amgen Inc. 52 1/2 +3 1/4 6.60 Thousand Oaks Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. 3. Eltron 31 +1 7/8 6.44 International / Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. 4. Cheesecake 33 1/2+2 6.35 Factory / Calabasas 5. Syncor 16 3/4 +1 6.35 International / Woodland Hills CAPTION(S): Box BOX: LOCAL MOVERS (see text) |
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