Stocks Will End Losing Streak
Dow, Nasdaq, S&P Are Poised
For First Annual Gains Since '99;
Markets Show Their Resilience
By E.S. BrowningStaff Reporter of The Wall Street Journal
Dec. 30, 2003 11:05 pm ET
In another sign of year-end resilience, stocks pushed broadly higher Tuesday despite some mediocre economic news, with the Nasdaq Composite Index finishing above 2000 for a second day, at a new two-year high.
With just one trading day left in 2003, all three major stock indexes now are poised for their first annual gains since 1999, after three painful years following the popping of the tech-stock bubble in 2000. In fact, this year's gains are far larger than average and, in many cases, rival the gains posted in the banner year 1999.
The Dow Jones Industrial Average, for example, is only a hair below its 25.22% gain of 1999. The Nasdaq is poised for its third-strongest yearly gain since the index was launched in 1971, exceeded only by the 57% in 1991 and 86% in 1999.
Tuesday's overall stock gains were mild at best, and the 30-stock Dow average, unlike most indexes, actually fell slightly on the day. But the broader market's ability to rise despite the disappointing news was seen as a sign that investors don't want to fight the current rally.
"There has been a steady bull market for the last nine months and I don't think anything is going to change now unless there is some geopolitical event or other event that makes that change," said Warren Epstein, head trader at New York brokerage firm Kabrik Trading. "The market will continue to have to prove itself as far as the economy goes, and so far it has been able to do that."