New York — A better-than-expected consumer confidence report sent stocks climbing Tuesday on hopes that Americans' spending could revive company profits earlier than anticipated. The Dow Jones industrials picked up 260 points, their third straight triple-digit gain.
But analysts were doubtful the rally would last, saying the market remains nervous about the broader economy's prospects amid other, weaker economic data.
A better-than-expected consumer confidence report lifted markets. The Dow Jones industrials picked up 260 points Tuesday for their third straight triple-digit gain. Specialist Arthur Mogavero, at back center, conducts trading in shares of Alza Corp. on the floor of the New York Stock Exchange.
A better-than-expected consumer confidence report lifted markets. The Dow Jones industrials picked up 260 points Tuesday for their third straight triple-digit gain. Specialist Arthur Mogavero, at back center, conducts trading in shares of Alza Corp. on the floor of the New York Stock Exchange.
An earnings warning from Nortel Networks after the market closed added to the likelihood that stocks would give back some of their gains.
The Dow ended the regular trading session up 260.01 at 9,947.54, a 2.7 percent gain. It has risen 558.06 since Thursday's close, making back more than a third of the 1,468 points the blue chips tumbled during 10 tumultuous trading days that ended Thursday.
Broader indicators also were stronger Tuesday. The Nasdaq composite index was up 53.77 at 1,972.26, a 2.8 percent increase, while the Standard & Poor's 500 index rose 29.48 to 1,182.17, a 2.6 percent increase.
"We're continuing to bounce back from the low trading levels we saw last week," said Robert Harrington, head of listed trading at UBS Warburg. "The question now is of sustainability. When do earnings start to improve? Will it be a third or fourth-quarter story?"
Nortel shares dropped $1.76 to $15, or 10 percent in extended trading as it warned about earnings and announced it would add 5,000 job cuts to its previously announced 10,000 cuts.
Losses in chip stocks already had limited technology's overall gains Tuesday. Wall Street worried that the sub-sector would suffer in the weak economic environment punished stocks including PMC-Sierra, which lost 86 cents to $31.40.
But investors did buy Microsoft, up $2.19 at $58.25, and IBM, up $4.10 to $99.50.
Tuesday's advances came after the Conference Board reported its Consumer Confidence Index shot up to 117 from a revised 109.2 in February.
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