The Associated Press
Bob Gault, a trader in the S&P 500 futures pit at the Chicago Mercantile Exchange, signals a trade late in the trading day Monday. The Dow shot up more than 200 points Monday for the second straight session.

Good news kindles rally

Blue chip, tech shares lead way in second torrid day of trading

LISA SINGHANIA THE ASSOCIATED PRESS

NEW YORK -- Showing a determination to buy not seen in months, investors bid stocks sharply higher Monday with a broad advance that propelled the Dow Jones industrials up more than 200 points for a second straight session.

The rally reflected a growing consensus among investors that an economic recovery is beginning. Blue chip and technology stocks soared despite an earnings warning from tech bellwether Oracle.

But analysts remained cautious.

"Today there's no denying that the sentiment in the market is that a recovery is at hand, and that investors are willing to put money to work," said Charles White, portfolio manager at Avatar Associates. "The danger is that ... we're not as strong as people believe."

Market action

The Dow closed up 217.96, or 2.1 percent, at 10,586.82, its best finish since July 19, when the average was 10,610.00. The Dow has advanced 479.93 since Friday, its biggest two-session point gain since December 2000.

Broader stock indicators also advanced. The tech-focused Nasdaq composite index gained 56.58, or 3.1 percent, to 1,859.32, recouping much of its recent losses but still below where it started the year.

The Standard & Poor's 500 index advanced 22.06, or nearly 2.0 percent, to 1,153.84, barely above its 2002 debut.

It was the second straight rally on momentum created by a barrage of good economic news last week, including strengthening manufacturing numbers and positive comments from Federal Reserve Chairman Alan Greenspan. Analysts also say Wall Street's mood is improving. Investors are looking for reasons to buy -- rather than to sell, as had been in the case in previous weeks amid accounting scandals at Enron and other companies.

Among blue chips, J.P. Morgan rose $2.84 to $32.50. General Motors advanced $3.73 to $58.70.

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