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Stocks at year highs after saddams capture Original Source Link: (May no longer be active)
http://www.forbes.com/markets/newswire/2003/12/15/rtr1181218.htmlhttp://www.forbes.com/markets/newswire/2003/12/15/rtr1181218.html
U.S. stocks at year highs after Saddam capture
Reuters, 12.15.03, 12:11 PM ET
By Bill Rigby
NEW YORK, Dec 15 (Reuters) - U.S. stocks set 2003 highs on Monday as investors welcomed the capture of former Iraqi President Saddam Hussein and anticipated a surge in consumer confidence before the holiday period.
The blue-chip Dow Jones industrial average <.DJI> and broader Standard & Poor's 500 Index <.SPX> both hit levels not seen since late May 2002, with the Dow holding well above the psychologically key 10,000 mark.
"Some individual investors who had been unwilling to return to the stock market may now seriously entertain the possibility of buying stocks now that the Dow is above 10,000 and Saddam has been captured," said Frederic Dickson, chief market strategist at fund firm D.A. Davidson & Co.
Saddam's capture could register in the shopping malls in the weeks before Christmas, some investors said.
"His capture will give consumers an upbeat feeling, which is very important heading into the holidays," said Phil Flynn, vice president and senior market analyst of Alaron Trading Corp.
The Dow industrials were up 66.59 points, or 0.66 percent, at 10,108.75. The S&P 500 rose 4.71 points, or 0.44 percent, to 1,078.85. The technology-heavy Nasdaq Composite Index <.IXIC> was up 7.90 points, or 0.41 percent, at 1,956.90.
Prices of "safe haven" U.S. Treasury bonds fell as American investors gained in confidence, while the U.S. dollar trimmed earlier gains against the euro. Gold futures stabilized after losses as the dollar rose.
Crude oil prices recouped early losses as traders said the capture of the deposed Iraqi leader did not appear to deter further violence in Iraq, which threatens oil output.
Leading the S&P 500 higher was energy company El Paso Corp. (nyse: EP - news - people), which said it planned to reduce debt by nearly one-third and sell as much as $3.9 billion in assets by the end of 2005. Its shares were up 60 cents, or 9 percent, at $7.35.
Wal-Mart Stores Inc. (nyse: WMT - news - people) put a lid on the Dow's gains as the United States' biggest retailer gave a chillier outlook for December sales as more people delayed holiday shopping or bought gift cards that do not immediately count toward revenue. Its shares fell 87 cents, or 1.7 percent, to $51.63.
Shares of Toys R Us Inc. (nyse: TOY - news - people), the No. 2 toy retailer, jumped 67 cents, or 6.2 percent, to $11.68 after a report in Barron's newspaper said the stock was undervalued.
Truckmaker Navistar International Corp. (nyse: NAV - news - people) forecast a larger-than-expected first-quarter loss, but impressed investors with ambitious long-term growth plans. Its shares rose $2.13, or 4.9 percent, to $45.91.
Bank Union Planters Corp. (nyse: UPC - news - people) said fourth-quarter mortgage-banking revenues will drop by more than one-half from the third quarter as the once red-hot business cools. Its shares dropped $3.30, or 9.7 percent, to $30.70. (Additional reporting by Doris Frankel and Denise Duclaux)
Copyright 2003, Reuters News Service
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