October 27, 2002	Sunday	Sha’aban 20,1423

NEW YORK, Oct 26: Stocks staged a late rally on Friday, propelling the market to its third straight week of gains, as investors snatched up companies like Intel Corp and Merck & Co. on growing hopes for a lasting turnaround on Wall Street.

We have gotten to the point now where we are buying on the dips instead of selling on the rallies. People don’t want to miss this, said Todd Leone, head of listed trading at S.G. Cowen. There’s a lot of money still on the sidelines, and I think we could get a sustained rally for the end of the year. That’s what people are talking about.

Computer chip leader Intel and drug maker Merck helped drive the blue-chip Dow higher as the market shrugged off earlier lethargy in a late-afternoon comeback. But the session still had its sore spots with Cigna Corp. tanking 38 per cent after the third-largest US health insurer slashed profit estimates.

According to the latest figures, the blue-chip Dow Jones Industrial average climbed 126.65 points, or 1.52 per cent, to 8,443.99, after dipping earlier in the session. The broad Standard & Poor’s 500 rose 15.15 points, or 1.72 per cent, to 897.65. The technology-loaded Nasdaq Composite index jumped 32.42 points, or 2.50 per cent, to 1,331.13.

Stocks got off to a weak start after a government report showed orders on costly and long-lasting durable goods posted their largest drop in 10 months in September. But the market recovered and then chugged higher after a separate report showed the housing market is still buoyant as homeowners take advantage of interest rates at 40-year lows.

In general, earnings numbers are proving to be better than expected, said Owen Fitzpatrick, head of the US equity group at Deutsche Bank Private Banking, which oversees $7 billion.—Reuters