- The Washington Times - Wednesday, February 26, 2003

NEW YORK (AP) Wall Street shrugged off a discouraging consumer confidence report yesterday and sent stocks modestly higher as investors placed bets after several days of declines.
But trading was choppy amid continued fears about war and the economy. The Dow Jones Industrial Average fell as much as 138 points to a new four-year low before staging a late-day rally on bargain hunting.
Analysts downplayed the comeback.
"I'd be hard-pressed to say we're in a brave new world," said Bryan Piskorowski, market commentator at Prudential Securities. "The market the last few days has been underloved and oversold, so we were due for a bounce."
The Dow rose 51.26, or 0.7 percent, to close at 7,909.50, having declined 159 points Monday, its biggest one-day loss in nearly a month.
The broader market also finished higher. The Nasdaq Composite Index gained 6.60, or 0.5 percent, to 1,328.98. The Standard & Poor's 500 index rose 5.99, or 0.7 percent, to 838.57.
The New York-based Conference Board said its Consumer Confidence Index plummeted to 64.0 in February from a revised 78.8 in January. The reading fell far below analysts' estimate of 77.0 and is the lowest since the index hit 60.5 in October 1993.
An encouraging housing report, meanwhile, helped lift the market.
The National Association of Realtors reported that existing-home sales surged to a record monthly high in January at a seasonally adjusted annual rate of 6.09 million. That represented a strong 3 percent gain from the level in December and defied analysts' expectations of a decrease.
Analysts say they expect trading to be uneven in the coming weeks as investors worry about threats of war and terrorism. While stocks have fallen recently to four-month lows, Wall Street also has seen gains on bargain hunting.
Yesterday, Iraqi Deputy Prime Minister Tariq Aziz said no decision had been made on an order by the United Nations for Baghdad to destroy banned weapons a day after Iraqi leader Saddam Hussein indicated in a CBS interview that he will refuse to obey it.
The United States, Britain and Spain are pushing for a U.N. Security Council vote against Iraq shortly after a March 7 report from chief inspectors Hans Blix and Mohamed ElBaradei; France, Germany and Russia have circulated a counterproposal for disarmament.
North Korea, meanwhile, launched a missile Monday, but it crashed into the sea between the Korean Peninsula and Japan. U.S. officials later downplayed the launch as an innocuous test.
H&R; Block climbed $1.31 to $38.51 after the biggest tax preparer in the country reported quarterly earnings that beat expectations of analysts.
Home-improvement retailer Home Depot rose 66 cents to $22.84 after reporting fourth-quarter profits that beat Wall Street's estimates by 3 cents a share.
Losers included DuPont, which declined 57 cents to $36.30, and Honeywell International, which lost 39 cents to $23.
American Eagle Outfitters dropped 40 cents to $14.86 after the clothing retailer reported fourth-quarter profits that beat estimates by a penny; it, however, also cautioned that February same-store sales, those from stores open at least a year, might be lower than expected because of the severe winter.
Advancing issues outnumbered decliners about 4-to-3 on the New York Stock Exchange. Volume was light at 1.47 billion shares, compared with the 1.22 billion traded Monday.
The Russell 2000 index, which tracks smaller-company stocks, rose 2.98, or 0.8 percent, to 361.2.


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