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Markets & Stocks
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Stocks edge higher
Buying in some blue chips lifts markets ahead of ISM index; weak tech reports slow Nasdaq.
February 3, 2003: 9:48 AM EST

NEW YORK (CNN/Money) - Buying of selected blue chips gave U.S. stocks a lift early Monday ahead of a widely awaited manufacturing report, while sluggish earnings restrained the tech sector.

The Columbia shuttle tragedy did not seem to have much impact on market action, although some companies in the aerospace and defense defense got knocked lower. The New York Stock Exchange will observe 2 minutes of silence at 11 a.m. ET to pay respect to the memories of the seven astronauts who were killed Saturday.

At about 9:45 a.m. ET, the Nasdaq composite (up 1.51 to 1322.42, Charts), Dow Jones industrial average (up 37.71 to 8091.52, Charts) and the Standard & Poor's 500 index (up 3.23 to 858.93, Charts) all rose modestly.

Gains in some of the harder-hit technology shares, particularly the chips, fostered the early gains, with Rambus (RMBS: up $0.50 to $16.00, Research, Estimates) showing the strongest gains. A Lehman Bros. upgrade of sector mate R.F. Micro Devices (RFMD: up $0.39 to $6.01, Research, Estimates) also gave a lift to that stock. But weakness in the telecom sector after Ericsson's (ERICY: down $0.75 to $7.38, Research, Estimates) weak quarterly earnings report and forecast restrained the tech sector.

Investors were also focused on the Institute for Supply Management's January manufacturing index, due out at 10 a.m. ET. The ISM index probably fell to 53.0 from 55.2 the prior month, according to economists surveyed by Briefing.com. A reading above 50 points to growth in manufacturing.

Also impacting trading, the Bush administration introduced its 2004 budget, which showed large projected deficits for this year and fiscal 2004, which starts Oct. 1.

Talk that there may an oversupply of oil in the second quarter pushed oil futures down, with Brent crude for March delivery losing 42 cents to $30.68. OPEC has covered the production lost from the Venezuelan strike and has not yet to announce a slowdown in production.

The decline in oil prices and the slide in bond prices are positives for stocks, as they often coincide with investors taking money out of commodities and putting it into equities.

Also helping stock action: the dollar rose versus the euro and the yen, as war fears got pushed a bit into the background. In an opinion piece in the Wall Street Journal, Secretary of State Colin Powell said that the U.S. will not back down. On Wednesday, he is scheduled to present Washington's case before the United Nations Security Council. Meanwhile U.N. weapons inspectors have accepted Iraqi officials' offer to return to Baghdad Feb. 8 for more talks.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.