Positive results fuel rally

INVESTOR euphoria enveloped the marketplace at midday yesterday after positive results from Citigroup, General Motors and Johnson & Johnson fuelled the Dow above 8,000 and the broader market to a fourth straight session advance.

Around 11.50am ET, the Dow Jones industrial average (up 287.42 to 8164.82) surged 3.6% and was on target for its first close above 8,000 since September 18. The Nasdaq composite (up 51.83 to 1272.36) advanced 4.2% and the Standard & Poor’s 500 index (up 31.30 to 872.74) rose 3.6%.

Some market watchers said the rally warrants a “bigger picture” analysis, given the fear factors of a weak economy and a possible war with Iraq still exist.

“This is a rubber band stretch that could snap back,” said Larry Wachtel, market analyst.

"The market has been oversold for so long that of course we'll get an inordinate response to any good news.”

On the New York Stock Exchange, advancers trounced decliners nearly 7-to-2 as 782 million shares traded. On the Nasdaq, advancers beat decliners 11-to-3 as 849 million shares changed hands.