US Markets 2 - Moderate market rise as investors play it safe
TAPE: EF02/0631
IN_TIME: 22:13:35
DURATION: 2:30
SOURCES: APTN/NYSE/NASDAQ/ABC
RESTRICTIONS:
DATELINE: New York - 26 July 2002
SHOTLIST:
NYSE
1. Wide shot, New York Stock Exchange trading floor
2. Med shot, closing bell NYSE
3. Close up, NYSE sign
NASDAQ
4.Wide shot, interior, NASDAQ trading board
6. Med shot, NASDAQ trading board ticker symbols (Imclone, Intel)
7. Pan right, Tyco to Motorola on NASDAQ trading board
8. Wide shot, exterior, NASDAQ building
ABC file
9. Med shot, Adelphia Communications CEO John Rigas taken away in handcuffs, Timothy Rigas taken away, Michael Rigas taken away
APTN
10. SOUNDBITE (English) Walter Murphy, Senior Market Analyst, Merrill Lynch:
"I think most of the market's reaction was just the fact that it was so, so, so, so, so sold out. In need of a bounce, markets don't go down for ten weeks in a row without having some sort of at least natural reaction. I believe it was a market move, I don't believe it was an event driven move."
NYSE
11. Cutaway, NYSE trading floor
APTN
12. SOUNDBITE (English) Walter Murphy, Senior Market Analyst, Merrill Lynch:
" The techinical condition of the market now is as good as it has been at any other recovery attempt this year. That's a good thing, the momentum is oversold, the sentiment is excessively bearish, that's a good thing. So I think the pre-conditions for a good rally are in place."
13. Wide shot, people on street in Times Square
14. Med shot, people on the street in Times Square
15.SOUNDBITE (English) Joel Kronfeld, Larchmont, New York:
"I think that American companies have value and that with accounting scandals and all the problems there cycles and if you read the last twenty years, you're going to see this goes up and down."
16. SOUNDBITE (English) John McPartland, Queens, New York:
"I think it's going to come pretty soon. I think it's more or less at the bottom now, I'm staying put, I'm not doing anything, taking my money out or anything like that."
17. Tilt up, exterior, NASDAQ building
STORYLINE:
Wall Street finished a tumultuous week on an upbeat note on Friday, with stocks posting a solid advance and raising hopes that after more than two months of selling, the worst of the market's decline might be over.
The gain helped the Dow Jones industrials achieve their biggest weekly advance in 10 weeks.
The week, which saw the Dow make its second largest one-day point gain, also marked the first time since July 1-5 that the Dow, the Nasdaq composite index and the Standard & Poor's 500 index all had two winning sessions.
The Dow closed up 78.08, or nearly 1 percent, at 8,264.39. The blue chips ended the week up 3 percent, their best showing since they rose 4.2 percent the week of May 17.
The market's other major indexes also advanced Friday. The Nasdaq rose 22.03, or 1.8 percent, to 1,262.11. The S&P 500 advanced 14.16, or 1.7 percent, 852.84.
But the week was mixed for the broad market with the Nasdaq falling 4.3 percent and the S&P 500 rising 0.6 percent. The three indexes have not all had a weekly gain since May 17.
The week also contained some substantial progress toward rebuilding sentiment for investors, among them the arrest of the founding members of Adelphia Communication's Rigas family on Wednesday, for alledgedly dipping into the company's till.
House and Senate negotiators on Wednesday agreed on legislation that would create tougher penalties for corporate fraud.
But some analysts say despite the government crackdown, the market was due for a rally anyway.
Analysts said investors - both individual and institutional -are beginning to feel more at ease after driving prices to five-year lows over the past 10 weeks.
But investors are still tentative as the market's steep declines are still fresh.
Investors are expected in the coming weeks to do more buying, enticed by lower stock prices after more than two month of heavy selling brought issues to values not seen since 1997.