MARKET HOPS ON A ROLLER COASTER.Byline: Phil Serafino Bloomberg News U.S. stocks rose Wednesday in a roller-coaster session that at one point took 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. 10 percent below its July record, driving investors to conclude that prices are reasonable relative to earnings prospects. ``There are some incredible buys out there,'' said Jim Glickenhaus, a partner at Glickenhaus & Co., which oversees $6 billion. Glickenhaus & Co. has been buying shares of Chrysler Corp., Ford Motor Co. and Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. The Dow average rose 59.47 points, or 0.7 percent, to 8546.78, rebounding in the last 38 minutes of the session from a 125-point drop. On Tuesday the Dow tumbled 299 points, its biggest decline since the Oct. 27 rout that closed U.S. trading. Procter & Gamble Co. led the gainers, rising $3.8125 to $81.5625 after expanding a $1 billion buyback program. The Standard & Poor's 500 Index rose 9.29 points, or 0.9 percent, to 1081.41. The Nasdaq Composite Index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed gained 2.33 points, or 0.1 percent, to 1787.97. It was the second-busiest trading day ever on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , with 852 million shares changing hands, topping Tuesday's 828 million. Even though the major indexes gained, this year's divergence between large and small stocks persisted, showing that the market's woes may not be over. Declining stocks led advancers by a 3-to-2 ratio on the NYSE NYSE See: New York Stock Exchange . Only 40 issues reached 52-week highs on U.S. exchanges, while 1,214 dropped to 52-week lows. The Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. of small stocks fell 2.94 points to 398.69, coming within a point of a 20 percent drop from its trading high of 492.28, set April 21. A 20 percent decline is the common definition of a bear market. Even after today's rebound, the Dow average is still down 8.5 percent from its July 17 record of 9337.97. It is up 8.1 percent for the year. Gains were limited because ``some people are saying to themselves, I've made 100 percent in the market in the last three years, and I've had enough,'' Glickenhaus said. Market strategist Abby Joseph Cohen Abby Joseph Cohen (CFA) (born 1952 in Queens, New York) is an American economist and financial analyst on Wall Street. She is a partner and chief U.S. investment strategist at Goldman Sachs. , co-chairman of the investment policy committee at Goldman, Sachs & Co., made a bullish call before the market opened, saying recent declines left shares ``undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. .'' Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , whose forecasts have proved correct in the past, also said the Dow industrials could ``easily surpass'' 9,300 by the end of the year. Edward Kerschner, PaineWebber Inc.'s chief investment officer, also issued a positive forecast, predicting that stocks could rise 20 percent or more in the next 12 to 18 months. Concerns about inflation and deteriorating earnings ``seem overblown o·ver·blown v. Past participle of overblow. adj. 1. a. Done to excess; overdone: overblown decorations. b. ,'' he said. Other investors said stocks are still too high, given that Asia's recession shows no signs of bottoming and the U.S. economy is slowing. ``It's going to be ugly for the next several months,'' said Charles Henderson, chief investment officer at the Chicago Trust Co., which manages $9 billion. Stocks have been struggling for weeks. The average stock on the NYSE is down 28.1 percent from its 52-week high and down 9.2 percent for the year, according to Salomon Smith Barney Inc. TRACKING THE DOW Wednesday's Dow Jones industrial average at 15-minute intervals: Tuesday's close: 8,487.31 Open: 8,497.61 Wednesday's close: 8,546.78 Change: + 59.47 SOURCE: Bridge Telerate CAPTION(S): Chart CHART: TRACKING THE DOW (see text) Associated Press |
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