Posted on 08/16/2002 10:14:00 PM PDT by Libloather
Dow Ends Down 40; Nasdaq Rises 16
Fri Aug 16,10:26 PM ET
By AMY BALDWIN, AP Business Writer
NEW YORK (AP) - Turning cautious after Wall Street's big two-day rally, investors left stocks mixed Friday, taking some profits in blue chip issues and doing some buying in the tech sector. Still, the major stock indicators all scored their second straight weekly advance, an achievement not seen in five months.
"The bottoming process is in hand," said Larry Wachtel, market analyst at Prudential Securities, of the market's two-week gains.
The Dow Jones industrial average closed down 40.08, or 0.5 percent, at 8,778.06. The loss was attributable largely to profit taking following the Dow's two-day gain of 335.75.
Broader market indexes finished mixed. The Nasdaq composite index rose 16.00, or 1.2 percent, to 1,361.01, having advanced 75.73 in the previous two sessions. The Standard & Poor's 500 index fell 1.48, or 0.2 percent, to 928.77, following a two-day gain of 46.04.
The market's three major gauges claimed their second straight weekly advance, a feat they last accomplished in the two-week period ended March 8. The Nasdaq was the week's biggest winner, surging 4.2 percent. The S&P had a weekly advance of 2.2 percent, while the Dow gained 0.4 percent.
Market observers attributed the two-week winning streak to signs that the market found a bottom in late July. The advance also reflected investors' relief that most of the nation's biggest companies were able to comply with a government deadline Wednesday to certify their financial results. Although the final count has yet to be completed, hundreds of CEOs affirmed their companies' numbers with few delays or restatements.
"The market is snapping back now, showing more resiliency," Wachtel said. "This is what is known as a proving out of the bottoming phase. You prove it out over time, just as you did in '87 and '74. Months went by before you were sure it was the bottom."
Wachtel said stock prices are finally appearing attractive to investors, and that investments that had been more in favor, such as bonds and money markets, are becoming less attractive.
"Stocks relative to everything else look reasonable," Wachtel said. "You have institutional investors saying, 'Too many bonds, not enough stocks,' and individuals saying, "I am not sure abut stocks, but how long can I live on 1 percent (in CDs or money markets).'"
While analysts are pleased by recent rallies, they say it will take time to rebuild investors' faith in the market and the economy after two years of bear markets, and in companies following a string of accounting scandals.
"What we're going to have to look for are signs of improvements in the economy. Investors are going to be looking for a period of time to pass without significant negative developments," said Kevin Caron, market strategist, Ryan, Beck & Co., LLC.
Disappointing economic findings, including weaker-than-expected consumer sentiment, contributed to Friday's lackluster tone on Wall Street.
The University of Michigan's consumer sentiment index for mid-August stood at 87.9, weaker than the 89.8 reading analysts were anticipating, according to Dow Jones Newswires.
And, the Commerce Department ( news - web sites) said housing construction in July fell 2.7 percent, the second straight monthly decline and weaker than the 0.5 percent increase some economists were forecasting.
On a positive note, the Labor Department ( news - web sites) reported that consumer inflation inched up 0.1 percent in July, lower than the 0.2 percent rise that analysts were expecting.
Among Friday's winners, Target rose 50 cents to $35.54, the day after reporting a 27 percent increase in second-quarter profits.
Technology got a lift from Texas Instruments, rising $1.69 to $21.99 after reconfirming its third-quarter earnings outlook.
And, Dell Computer advanced 39 cents to $27.53 the day after it reported a 27 percent increase in second-quarter profits.
As for decliners, Citigroup fell 94 cents to $34.90 on a report in The Wall Street Journal saying the National Association of Securities Dealers is looking into whether the firm's Salomon Smith Barney unit gave some clients shares of initial public offerings at below-market prices.
American Eagle Outfitters tumbled 98 cents to $14.79 after Morgan Stanley downgraded the stock.
Advancing issues outnumbered decliners nearly 5 to 4 on the New York Stock Exchange ( news - web sites). Consolidated volume was light at 1.55 billion shares, below 1.82 billion on Thursday.
The Russell 2000 index, the barometer of smaller company stocks, rose 5.24, or 1.3 percent, to 395.97.
Overseas, Japan's Nikkei stock average finished Friday up 0.1 percent. In Europe, France's CAC-40 finished off 0.03 percent, Britain's FTSE 100 inched up 0.1 percent, and Germany's DAX index rose 0.5 percent.
Democratic National Committee Chairman Terry McAuliffe Remarks to the Arkansas Democratic Party Convention Little Rock, Arkansas August 17th, 2002
Friday August 16, 8:20 pm Eastern Time
Press Release
SOURCE: Democratic National Committee
ADVANCE FOR RELEASE AT 7:00 A.M. EDT, SATURDAY, AUG. 17/
LITTLE ROCK, Ark., Aug. 17 /PRNewswire/ -- The following is a transcript of remarks by Democratic National Committee Chairman Terry McAuliffe to the Arkansas Democratic Party Convention, Little Rock, Arkansas, as prepared for delivery:
"Thank you, thank you for inviting me to be with one of the most enthusiastic party organizations, in one of the most important states in the elections this fall. Ron Oliver, you have done a tremendous job organizing and motivating Arkansas Democrats as we approach the final lap of this campaign season.
"For too long, the DNC ignored Southern states. Folks, those days are over. The Democratic National Committee is standing shoulder-to-shoulder with Southern Democrats, and the Democratic tide is rising throughout the South. You know, today you can drive from the Mississippi Delta all the way to the Statue of Liberty and every state you pass through will have a Democratic governor! And we're going to add Arkansas to that list. And you know what -- you can't find a route to the White House that doesn't take you along that very same road.
"My friends, the days of the DNC ignoring the South are over!
"You can feel the excitement in this room today. And you can read all about it in the newspaper stories and the polling results that all point to one thing: Arkansas Democrats are ready for big wins November 5th.
"This year, when control of the Senate can turn on a single seat, Arkansas Democrats are ready to send Mark Pryor, one of the best friends working Arkansans ever had to Washington. When Mark Pryor joins Blanche Lincoln he'll give this state two voices fighting together for Arkansas families for the first time since 1996. Remember the good old days when you were represented by two great senators, Dale Bumpers and David Pryor. Well folks, those days are coming back!
"This year, Democrats are prepared to win back the House of Representatives and Arkansas Democrats are ready to lead the effort. By sending Marion Berry, Vic Snyder and Mike Ross back with record margins and a mandate to save Social Security, pass prescription drug legislation, and get this economy going again.
"This year, when the Democratic Party is ready to control the majority of the nation's governorships for the first time since 1994, Arkansas Democrats are ready to put Jimmie Lou Fisher in the Governor's Mansion. We need to get some straight talk and honest government out of Little Rock. Jimmie Lou will do that.
"And this year, when you elect the first African American ever to statewide office and make Ron Sheffield the Lt. Governor of this great state you will prove that Democrats don't just talk about diversity, it is a fundamental value.
How does this sound:
Charles David, Secretary of State
Russ Winfield, State Treasurer
Jim Woods, Auditor
Mark Wilcox, Land Commissioner
"We need to take the enthusiasm here in this room, and put it onto the streets as a top-notch field organization that turns out every Democrat in every precinct in this state.
"All the pieces are now in place for historic Democratic victories. We have the superior candidates. We have the issues on our side.
"Now we need you.
"Your hard work will decide if the United States Senate is controlled by people like Tim Hutchinson, an almost wholly-owned subsidiary of the global pharmaceutical industry.
"Hutchinson thinks prescription drug benefits means benefits for drug companies -- he voted against a Democratic plan that would have given every Arkansan real benefits. He also introduced a law protecting drug-company profits with a bogus, industry-run plan. If he weren't so ineffective as a Senator, he'd be a danger to every senior in the state.
"Think about the Governor's race, and Mike Huckabee's exaggerated sense of his own glory.
"A few weeks ago, Mike Huckabee claimed he had a 20 point lead. He also claimed he had an education plan. It turns out that both of them only existed in his head. Polls show Jimmie Lou Fisher within single digits in the governor's race. The gap is closing. And when Jimmie Lou releases her education agenda next month her momentum is only going to grow.
"Why? Her plan isn't a press release. Her plan isn't four years late.
"Her plan doesn't come from someone who's made a career slashing millions out of the Arkansas education budget. Huckabee's plan -- the aptly named -- 'Next Step' program is little more than an election year prop by someone who's next step is out of the Governor's mansion and back into private life where he belongs.
"Arkansas will elect Jimmie Lou in 2002.
"Think about Ron Sheffield. At a time when the Bush administration has made job security and a weak economy America's greatest concern, he has a chance to make history, and, more than that, he can take back the state's second highest office for people who know what it's like to be part of a working family in tough times.
"But we've seen before, here in Arkansas and in other races across the country, that strong organizations, important issues and great candidates aren't always enough. Too often, Democrats had the talent, and the tenacity to win, but came up short because we lacked the technology to fight our battles at the highest levels.
"That has changed. During my campaign for Chairman, I pledged to get the tools and resources needed to elect Democrats to office into the hands of party organizations across the country.
"And this fall, we're going to see the results of those efforts, here in Arkansas and in races across the country.
"I'm working with State Chair Ron Oliver, the Arkansas Democrats and all the state Democratic parties to modernize voter files. In Arkansas alone we have corrected almost four hundred thousand voter addresses and saved the party more than two hundred thousand dollars in mailing costs in the last eighteen months.
"We've dramatically increased our small donor base, so that our fundraising now derives its strength from the grass roots just as the rest of our Party does.
"And for the first time in the history of the Democratic Party, I'm proud to announce that the DNC is finally debt-free. While George Bush is running up deficits in Washington, I'm paying the bills.
"We've pumped new life into our political programs, strengthened our relationships with key constituencies, including African-Americans, seniors, Hispanics, organized labor, and rural communities.
"We've also built a 21st century technological infrastructure; we're no longer stuck in the horse-and-buggy era while Republicans use space age technology to peddle their Stone Age ideas. Eighteen months ago, we didn't have enough e-mail addresses to fill a modern football stadium.
"Today, we can, with the push of a button, send information instantly to one million Democratic activists.
"The investments have been made. The machinery is in place. Now it's time to crank it up. Every one of us knows why this election is so important, and why so many eyes from across the country are focused on the races here.
"Ten years ago, Bill Clinton came to Washington promising to "put people first" and for eight years the people of Arkansas and America enjoyed an unmatched period of growth, prosperity and progress. More people owned a home than ever before. More people had jobs than ever before.
"Seven million people climbed out of poverty, 35 million people used the Family and Medical Leave Act. Crime was down, welfare was down and the budget deficit was down so far it turned into a surplus.
"Democratic leadership put people first and the whole country benefited.
"George Bush had a chance to build on that legacy, to create jobs and opportunity. In fact, we gave him one hell of a head start.
"George Bush inherited the strongest economy in the nation's history and the first federal budget surplus in a generation, and George Bush fumbled it away ... since he's taken office, 1.6 million Americans have lost their jobs, and the deficit has now climbed to $150 billion.
"The President's response? A so-called economic stimulus package that saved Enron $250 million in taxes.
"And this week, he gathered the only 240 people left in America who believe his economic vision is the right course for America, for a cheerleading session in Waco.
"Compounding the growing unease about the economy is the President's indifference to corporate scandal and its cost to American workers.
"For the last nine months, we've watched as several giants of capitalism collapsed under the weight of their own dishonesty, tarnishing the reputations of the thousands of good companies and honest executives who do create jobs, who do generate growth, who do obey the law. And each time a company went under, not only did thousands of Americans see their jobs disappear ... but thousands more saw their retirement dreams shattered.
"But President Bush was unwilling to spend political capital to make the necessary corporate reforms. But even worse, his own past leaves him unable to lead on this issue. How can he restore confidence to Wall Street when he has engaged in the same practices he condemns today ... when his own Vice President's former company is under investigation ... when he's appointed Harvey Pitt, a walking conflict of interest, to chair the SEC?
"When it comes to corporate accountability, it's not just that George Bush won't lead ... he can't lead.
"And, at a time when every American is feeling the strain of economic uncertainty, the Bush Administration -- hand in hand with Republican legislators like Tim Hutchinson -- has launched an assault on the retirement security of older Americans.
"With prescription drug prices rising at three times the rate of inflation, with one senior in four spending more than $4000 a year on prescription medication, he proposed a plan that would completely ignore the needs of 94 percent of all seniors. Then he sided with House Republicans as they pushed a plan written by drug company lobbyists.
"When his budget office's Enron-style -- or should I say Halliburton-style accounting tricks could no longer hide the huge budget deficit he'd run up, he raided the Medicare and Social Security Trust Funds to pay for his misguided tax cut.
"And just two weeks ago, the President re-affirmed his commitment to investing Social Security funds in the same stock market his speeches keep pushing down.
"A sick economy, a plague of corporate scandals, and growing insecurity among America's seniors -- George Bush hit the trifecta, alright.
"Americans have had two years to see the difference between the Bush promise and the Bush performance. They see the difference, and they need a change. And with your help -- with our great candidates, with our new technology, with our issues, and with the Democratic Party driving an overwhelming turnout here in Arkansas -- the American people will get the change, and the leadership they deserve.
"Ten summers ago, when you sent Bill Clinton to New York City, to accept our party's presidential nomination, he said: "George Bush, if you won't use your power to help America, step aside. I will." A decade later, it's a different George Bush, but the same message: Mr. President, you haven't used your power to restore economic growth ... to enhance retirement security ... to improve health care ... to invest in education ... to protect our environment. So step aside. Because Democrats will lead.
"That leadership starts today.
"Thank you very much."
Would he be able to spot a bottom even if it belonged to Jennifer Lopez?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.