- The Washington Times - Saturday, December 7, 2002

NEW YORK (AP) The Dow Jones Industrial Average's eight-week winning streak ended yesterday, although Wall Street managed a modest gain following news that President Bush had shaken up his economic team.
The announcement that Treasury Secretary Paul H. O'Neill and White House adviser Lawrence Lindsey had resigned lifted the market from an early slump caused by a disappointing unemployment report. Analysts said the shuffle offered hope of a fresh approach to bolstering the economy.
"The market doesn't like O'Neill," said Scott Wren, equity strategist for A.G. Edwards & Sons. Investors are hoping to see a replacement "who's going to be more in tune with the global economy in terms of what makes it tick," he said.
The Dow climbed 22 points, or 0.3 percent, to close at 8,646, after a five-day loss of 308 points. The blue chips were down 121 in early trading yesterday before recovering.
The broader market also finished higher. The Standard & Poor's 500 index rose 5.7, or 0.6 percent, to 912, while the Nasdaq Composite Index gained 11.7, or 0.8 percent, to close at 1,422.
For the week, the Dow fell 2.8 percent, snapping its eight-week winning streak. The Nasdaq dropped 3.8 percent and the S&P; 500 lost 2.6 percent, ending three straight weeks of gains.
Analysts say the market's recent declines are not surprising after eight weeks of blue-chip gains. They believe many investors are cashing in some profits on worries about corporate profits and a war with Iraq but that they will eventually bid stocks higher on hopes of a year-end rally.
"You had two straight months of pretty much 20 percent upside on the averages, and that's not sustainable," said Tony Cecin, director of institutional trading at US Bancorp Piper Jaffray in Minneapolis.
Gainers included J.P. Morgan Chase, which climbed 82 cents, to $24.43, and Philip Morris, which rose 59 cents, to $39.95.
Intel fell 25 cents, to $18.71 despite raising its fourth-quarter revenue forecast on stronger sales of its microprocessors.
IBM dropped 74 cents, to $82.32 after announcing it would buy Rational Software for $2.1 billion in cash. Salomon Smith Barney downgraded IBM to "in-line" from "outperform," citing the high price of its stock. Rational rose $2.12, to $10.29.
Advancing issues outnumbered decliners more than 8 to 5 on the New York Stock Exchange. Consolidated volume was light at 1.58 billion shares, slightly lower than the 1.59 billion traded Thursday.
The Russell 2000 index, which tracks smaller-company stocks, rose 2.27, to 396.72.
Overseas, Japan's Nikkei stock average finished 0.6 percent lower Friday. In Europe, France's CAC-40 rose 0.9 percent, while Britain's FTSE 100 dropped 0.5 percent and Germany's DAX fell 0.5 percent.

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