Stocks Climb on Techs, Ahead of Data

Thursday February 21, 9:47 am ET
By Joe Bel Bruno,
AP Business Writer.

Wall Street Moves Higher on Strong Tech Gains, Ahead of Economic Data


NEW YORK (AP) -- Wall Street extended its rally in early trading Thursday as traders placed bets that further economic data will allow the Federal Reserve to cut interest rates at its March meeting.

Investors, who shrugged off inflation concerns to send stocks broadly higher Wednesday, are awaiting two key reports due out at 10 a.m. EST. The hope is that both are upbeat enough to reassure investors that the U.S. economy isn't falling into a recession, yet show enough weakness to motivate central bankers to implement further rate cuts when they meet March 18.


The Conference Board's gauge of leading economic indicators is expected to show a slight dip last month. The report is designed to predict where the U.S. economy is headed in the next three to six months.

Meanwhile, the Philadelphia Federal Reserve's February manufacturing index is expected to rebound from January's six-year low while still showing declining business activity.

Traders are already pricing in another interest rate cut -- perhaps by up to 50 basis points -- after minutes from the Fed's last policy-setting meeting indicated central bankers will remain vigilant. The Fed forecast slower growth and continued risks to the economy from housing and credit markets.

In the first hour of trading, the Dow Jones industrial average rose 50.88, or 0.41 percent, to 12,478.14.

Broader indexes also moved higher. The Standard & Poor's 500 index added 5.13, or 0.38 percent, to 1,365.16, while the Nasdaq composite rose 19.40, or 0.83 percent, 2,346.50.