NEW YORK, Oct. 4 (UPI) -- Stock prices on the New York Stock Exchange and the Nasdaq Stock Market were higher in moderate trading at midday Thursday, lifted by an encouraging announcement from Dell Computer, which helped investors shrug off weakness on the labor front.
The blue-chip Dow Jones industrial average, which surged 173.19 points Wednesday, was ahead 36.10 points to 9,159.80.
The tech-heavy Nasdaq composite index, which jumped 88.48 points in the previous session, was ahead 50.85 points to 1,631.66.
The broader New York Stock Exchange composite index was ahead 2.90 to 559.05, while the Standard & Poor's 500 index was ahead 9.22 to 1,081.50.
The American Stock Exchange composite index was ahead 5.73 points to 827.26 while the Wilshire Smallcap Index was ahead 11.61 to 643.19.
Big Board volume rose to an estimated 657.30 million shares from 578.80 million shares changing hands during the same period Wednesday.
Analysts said stocks pushed higher after Dell Computer Corp. reaffirmed its third-quarter earnings guidance, saying it was winning new customers at a rapid rate and successfully managing its operating expenses.
The computer maker said back in mid-August that it was targeting earnings of 15 cents to 16 cents a share on revenue of $7.2 billion to $7.6 billion for the third quarter ending Nov. 2.
The company said it now has reaffirmed its mid-August targets of earnings of 15 cents to 16 cents a share on revenue of $7.2 billion to $7.6 billion.
Analysts on Wall Street that track the company had been expecting Dell to post a net income of 15 cents a share, according to Thomson Financial/First Call.
Analysts were expecting Dell to post revenues of $7.27 billion for the third quarter.
But, analysts said the Dow Jones industrial average seesawed amid uncertainty about the economic outlook and the continued threat of terrorism.
On the economic front, the Labor Department said new claims for state unemployment benefits during the week ended Sept. 29 climbed by 71,000 to a seasonally adjusted annual rate 528,000 -- their highest level in nine years.
Economists on Wall Street were expecting first time claims to rise by 16,000 during the week.
The rise in claims was the highest level since 539,000 were recorded back during the week ended July 25, 1992.
The latest rise was a result of the Sept. 11 terrorists attacks in New York and Washington and due in part to layoffs in the airline, tourism and other travel-related businesses.
And, in another report on the labor market outplacement firm Challenger, Gray & Christmas said the number of layoff announcements by U.S. companies rose to their highest monthly level this year during September compared with the previous month, signaling the recent attacks on the United States may have thwarted the possibility of a near-term recovery for the flagging U.S. economy.
The firm said corporate America slashed 248,332 jobs in September, 77 percent more than in August when companies announced 140,019 layoffs.
The number job cuts were also more than four times greater than during the same month last year.
Eighty-one percent of the September job cut announcements took place after the hijacked plane attacks on the World Trade Center and the Pentagon on Sept. 11, Challenger, Gray & Christmas said.
The Challenger Gray report comes just as analysts await the government's closely watched U.S. employment report for September, which the Labor Department is scheduled to release on Friday.
Most economists on Wall Street are expecting non-farm payrolls to decline by 100,000 during the month after falling by 42,000 in August while the unemployment rate is expected to rise to 5.0 percent from 4.9 percent in August.
Mickey D. Levy, Chief Economist at Bank of America Securities said, "Tomorrow's employment report, which will not reflect post-September 11 conditions, is forecast to show a 100,000 decline in nonfarm payrolls but a modest dip in the unemployment rate to 4.8 percent, a partial retracement of its surge in August.
"The sharp increases in job layoffs since September 11 and weakened economy, which will limit new hires, points toward very large declines in payrolls in coming months and a quick jump in the unemployment rate. We anticipate the unemployment rate will rise to 5.75 percent and perhaps a little higher, and not recede through most of 2002, even as the economy rebounds," Levy said.
Meanwhile, U.S. Treasury prices headed lower despite the weekly jobless claims report and concerns over a suspected terrorist attack in Russia.
The 30-year bond slipped 10/32 to 100 29/32. Its yield, which moves in the opposite direction of its price, rose to 5.31 percent from 5.29 percent late Wednesday.
In Europe, stocks closed higher in London, Frankfurt and Paris in moderate trading, lifted by strength in technology, telecom, media and software issues.
The London International Stock Exchange's blue-chip FTSE-100 index gained 148.1 points, or 3.03 percent, to 5,029.9. The blue-chip German DAX index rose 107.99 points, or 2.43 percent, to 4,544.65 and the French CAC-40 index jumped 161.36 points, or 4.01 percent, to 4,185.61.
Analysts said stocks also were supported by the Bank of England decision to lower its benchmark interest rate for a second time in three weeks to help avert recession after terrorist attacks on the U.S. eroded confidence among consumers and executives worldwide.
The central bank reduced the securities repurchase rate by a quarter point to 4.5 percent, taking the amount charged on loans to commercial banks to the lowest level since 1964.
Earlier in Asia, prices on the Tokyo Stock Exchange ended higher in moderate trading, lifted by strength in technology stocks following Wednesday's gains on Wall Street.
Japan's blue-chip Nikkei Average of 225 selective issues, which lost 212.33 points Wednesday, rose 281.25 points, or 2.83 percent, to 10,205.48, just off its best level of 10,215.89 and well below its low of 10,038.61.
Analysts said stocks rose on buying of technology issues, which were supported by Wall Street's gains on Wednesday.
Wall Street's rally came after President George W. Bush proposed a stimulus plan of between $60 billion and $75 billion to avert a steep recession triggered in part by the terror attacks.
But, analysts added the Nikkei 225 index ran into resistance around the 10,200 level, roughly the same level seen before the terrorist attacks.
Elsewhere in Asia, prices on the Hong Kong Stock Exchange ended sharply higher in busy trading as the uptick in U.S. service sector activity and hopes for a stimulus package helped dispel gloom over the outlook for the U.S. economy.
The blue-chip Hang Seng Index jumped 389.25 points, or 3.93 percent, to 10,286.39 -- just off its best level of the session of 10,293.64.
Meanwhile, prices also ended higher on the South Korean Stock Exchange as the Korean market traded for the first time this week after three days of public holidays. The key Kospi composite index rose 20.96 points, or 4.37 percent, to 500.64, lifted by strength in technology stocks.
Elsewhere in Asia, prices ended higher on the Taiwan Stock Exchange as investors brushed aside concerns over possible U.S. military strikes against Afghanistan. The Weighted Index, which fell 45.86 points Wednesday, rebounded 47.40 points, or 1.38 percent, to 3,493.66. The key index dropped to its lowest level since Jan. 30, 1993 on Wednesday.
Elsewhere around the region, prices ended slightly higher on the Australian Stock Exchange. The blue-chip All Ordinaries Index rose 6.00 points, or 0.20 percent, to 3,067.50.
