NEW YORK (AP) Bargain-hunting and news of an unsolicited bid for AT&Ts cable TV business helped revive blue chip and technology stocks Monday, pushing the major indexes higher after a weeklong slump. The gains were mod-erate, though, reflecting investors unwillingness to make any big moves ahead of upcoming second-quarter earnings reports.
A lot of fearPeople are waiting because theyre worried. Theres a lot of fear there could be more slowness in the economy, said Ronald J. Hill, investment strategist at Brown Brothers Harriman & Co.
The Dow Jones industrial average closed up 46.72 at 10,299.40, according to pre-liminary calculations, its first advance in a week.
The broader market was also higher, with the NAS-DAQ composite index rising 22.55 to 2,026.71, and the Standard & Poors 500 index gaining 8.19 to 1,198.78.
AT&Ts price was adjust-ed at the start of Mondays session when its wireless unit was spun off. AT&T Wireless ended the session lower, at $16.56.
Tech stocks helpSome light bargain-hunt-ing in technology stocks after last weeks selloff also helped. EMC rose 72 cents to $22.32, while Advanced Micro Devices gained 40 cents to $21.20. Warnings from both companies helped precipitate the Dows 227-point decline Friday.
Analysts put little stake in the gains, however, noting that investors remain rattled after warnings from more than 720 companies that sec-ond-quarter results will fall below expectations.
They say that before many investors will make a substantial commitment to the market, they must see real proof that the economy and company earnings are indeed turning around. That means better earnings and more concrete predictions of when business will improve.
What starts to wear on the psyche of the market, are all these warnings about business not getting any better. That gets people questioning whether the recovery is coming, said Charles White, portfolio manager for Avatar Associates.
Indeed, earnings warnings stressed the market again Monday. NCR, a maker of cash registers, tumbled $6.07 to $38.70 after announcing it will miss second-quarter earnings expectations by as much as 22 cents a share.
Still, there is some optimism that second-quarter earnings wont be as bad as feared, especially since so many companies have lowered their forecasts and their stocks have already sold off in response.
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