Dow soars nearly 170, helped by tech rally

AP Business WriterNEW YORK (AP) -- An upgrade of Applied Materials and a forecast of possible improvement in the job market incited another round of bargain hunting Monday, lifting technology stocks and propelling the Dow Jones industrials more than 150 points higher.

It was the second triple-digit gain for the Dow in four sessions, but analysts were skeptical that the momentum would last. The advance followed a losing week for the major indexes, suggesting that the was merely rebounding as investors searched for good deals rather than shaking off the malaise that has weighed on trading for more than a month.

Volume was also light, an indication that many investors were staying away.

"We are still working off what is technically an oversold market, and a good news story can cause a decent rally," said Barry Hyman, chief investment strategist at Ehrenkrantz King Nussbaum. "That's what happened last week and it could happen this week. As far as sustainability, though, we'll have to see."

The Dow closed up 169.74, or 1.7 percent, at 10,109.66, according to preliminary calculations.

Broader indicators fared even better. The tech-focused Nasdaq composite index rose 51.69, or 3.2 percent, to 1,652.54. The Standard & Poor's 500 index was up 19.57, or 1.9 percent, at 1,074.56.

Wall Street got a lift from a Manpower survey showing that businesses expect to hire more employees in the third quarter of this year, particularly in manufacturing. Manpower is the nation's largest staffing company.

Applied Materials rose $1.88, or 7.9 percent, to $25.88 on a Merrill Lynch upgrade the day before the semiconductor services and products company reports earnings. Goldman Sachs also raised its estimates for the company.

The buying spread across the tech sector. Microsoft climbed $2.64 to $52.69, while Intel advanced $1.51 to $28.52.

Financial stocks also fared well. American Express advanced $1.50 to $43, while Citigroup rose 94 cents at $44.24 despite a Wall Street Journal article that questioned its finances.

Among retailers, Lands' End surged $10.71, or 21 percent, to $61.73 on word that Sears, Roebuck was buying the catalog-retailer for about $1.9 billion. Sears rose 19 cents to $52.

Wall Street was also waiting for a Commerce Department report due Tuesday on April retail sales. Stores released their own figures last week, and many were disappointing.

The advance was reminiscent of trading last Wednesday, when stronger-than-expected results from Cisco Systems sent the Dow up 305 and the Nasdaq 122 -- the market's best showing since September. The enthusiasm had faded by week's end, however, as investors decided not to risk losing their gains and cashed in their wins.

That type of skepticism that has pressured Wall Street since early April. Investors have generally been selling on frustration over mediocre first-quarter earnings and unimpressive outlooks. Although the market has occasionally bubbled up, the trend has been primarily lower, with stock prices falling on uncertainty about the timing and robustness of a business recovery.

Analysts say upbeat earnings and forecasts are the most likely catalysts for a lasting turnaround. But that might not happen for months. While some retailers report results this month, the next big batch of earnings reports aren't due until July.

"No one is calling this market cheap and when you're in a period where earnings have yet to kick in, that adds to the uncertainty and volatility," said Matt Brown, head of equity management at Wilmington Trust.

Advancing issues led decliners more than 3 to 2 on the New York Stock Exchange, where volume was light at 1.08 billion shares, compared with 1.18 billion Friday.

The Russell 2000 index rose 6.99, or 1.4 percent, to 499.72.

Overseas, Japan's Nikkei stock average fell 1.7 percent. In Europe, Germany's DAX index advanced 2.1 percent, Britain's FTSE 100 climbed 0.7 percent, and France's CAC-40 gained 1.1 percent.

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