New York Wall Street showed it can tolerate bad earnings news Wednesday, rallying sharply despite Motorola's announcement of more losses and job cuts. The Dow Jones industrials, which surged 188 points, have now won back more than 1,000 of the 1,369 points lost after the Sept. 11 terrorist attacks.
Analysts cautioned that the buying did not signal any kind of fundamental market turnaround but rather was an extension of a rebound.
"There definitely is some buying going on here. But there is also a sense of tenuousness in the air," said Scott Bleier, chief investment strategist at Prime Charter Ltd. "We are about to go back to the pre-Sept. 11 levels that we broke down from and that's likely to meet with some pretty significant resistance."
The Dow closed up 188.42 at 9,240.86, a gain of 1,005 from its close of 8,235.81 on Sept. 21, the end of the first week of trading after the attacks.
All three major indexes are now within striking distance of their pre-attack levels, but market watchers said it's too early to know if investors are feeling less worried about the weak economy and U.S. military action against terrorists or just bargain hunting.
"The bullish scenario here is that people are pretty resilient and will adapt to this new world," said Robert Harrington, head of trading at UBS Warburg.
On Wednesday, Motorola advanced 19 cents to $16.91, overcoming news that the company was cutting another 7,000 jobs. Other tech stocks moved higher, too. Microsoft was up 95 cents at $55.51, a recovery from Tuesday's decline.
Among blue chips, American Express rose 52 cents to $29.52 on a court ruling that Visa and Mastercard will no longer be able to bar member banks from issuing credit cards from rivals.