Dow Rallies to 14-Month High

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Last updated at: (Beijing Time) Tuesday, August 19, 2003

Dow Rallies to 14-Month High

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U.S. stocks rose on Monday, with the Dow Jones Industrial Average ending at a 14-month high, as rosy news from big retailers like Wal-Mart Stores Inc. WMT.N bolstered investors' hopes that the economy and corporate profits are improving.

Signs of improvement in the economy, corporate profits and retail sales are luring investors into stocks, said Erik Gustafson, senior vice president and portfolio manager at Columbia Management Group.

Traders were breathing a sigh of relief that the economy appears to have emerged from the darkness of last week's blackout largely unscathed.

Wal-Mart said August sales in its U.S. stores may beat its forecast and show the biggest gain in 14 months. Lowe's Cos. Inc. LOW.N , the No. 2 U.S. home improvement retailer, posted earnings that blew past analysts' forecasts, and the company raised its profit forecast for the year.

The Dow Jones industrial average .DJI jumped 90.76 points, or 0.97 percent, to 9,412.45, its highest close since June of last year. The broader Standard & Poor's 500 Index .SPX rose 9.07 points, or 0.92 percent, to 999.74, its highest close in about a month. The technology-laced Nasdaq Composite Index .IXIC climbed 37.48 points, or 2.2 percent, to a one-month closing high of 1,739.49.

Trading volumes were modest, however, with many investors on vacation during the last weeks of summer. About 1.1 billion shares were traded on the New York Stock Exchange and about 1.5 billion were traded on Nasdaq.

Souece: Agencies

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