Bush move rallies stocks

US blue-chip stocks rallied at mid-session yesterday as optimism regarding President Bush's intervention in the West Coast port dispute overcame continuing concerns about the economy and possible military action in Iraq.

Around 12.40 pm ET, the Dow Jones industrial average rose 66.17 to 7594.57, while the Standard & Poor's 500, up 3.48 to 804.06 and the Nasdaq composite, up 1.45 to 1141.35, were just above the breakeven point.

Just as the markets were opening, administration officials said Bush will appoint a board of inquiry to determine the economic impact of the port lockout, which has lasted more than a week.

Blue chips rallied on the news. But initial enthusiasm faded and the negativity that has led to six straight weeks of stock losses returned.

“We had a little surprise with the Bush announcement right away and that gave us a little hope, but the market is still faced with all the same problems that have hurt us for weeks,” said Peter Cardillo, director of research at Global Partners Securities.