US bargain hunters drive down prices

Bargain hunters have driven up stock prices in the US, with the Dow Jones industrial average rising 79.72 to close at 9,878.78.

But it still posted its worst first quarter ever in terms of points - down 908.07 - and its 10th-worst in terms of percentage loss.

The Nasdaq finished up 19.69 at 1,840.26, while the Standard & Poor's 500 index gained 12.38 to close at 1,160.33. The Russell 2000 index rose 9.00 to 450.53.

The Dow posted its worst first quarter ever in terms of points - down 908.07 - and its 10th-worst in terms of percentage loss.

The 8.4% decline for the first three months of 2001 is its worst first-quarter performance since 1978.

On Friday, the market indicators put together their gains gradually as investors traded cautiously, partly on expectations that earnings will suffer all year, and partly because of a report by the Purchasing Management Association of Chicago.

The group reported that its index of business activity in the Midwest fell to 35.0 in March, its lowest level since March 1982. Any number below 50 indicates business in the manufacturing sector is contracting.

Analysts had expected a reading of 43.5, slightly higher than the 43.2 level reported for February. The Chicago survey is watched closely for clues to the index of the National Association of Purchasing Management, which will be released Monday.

Blue chips have fallen hard in the last two weeks - with the Dow briefly landing in bear market territory last week - as investors saw signs that the ill effects of the slowing economy have hurt more than just the technology sector.

Advancing issues outpaced decliners 2 to 1 on the New York Stock Exchange where volume was 1.27 million shares, compared with 1.23 million on Thursday.