They say the stock market hates uncertainty. But despite a big heap of uncertainty piling up late Thursday, Wall Street posted solid gains in mid-afternoon trading as traders focused instead on some upbeat earnings reports.
Meanwhile, Amazon.com, which soared to a record high a day earlier on one analyst's sunny-bright price forecast, lost some wind from its sails as other analysts weighed in with more sober assessments.
The Wired Index was up 11.33 points at 485.61, and the Dow Jones Industrial Average was 50.21 higher at 8840.81. The Nasdaq Composite Index rose 22.41 to 2031.77, and the S&P 500 was up 10.87 at 1172.81.
Investors shrugged off the bombs raining down on Baghdad and the looming prospect of President Clinton's impeachment. Of greater interest was the welcome arrival of positive earnings reports following a wave of profit warnings from leading Blue Chips.
Chase Manhattan (CMB) sent spirits soaring with its announcement that fourth-quarter earnings likely will exceed the US$1.07 expected by analysts. The bank even went so far as to tease investors with a hint that record quarterly earnings are "possible." Chase's stock advanced $4.56 to $68.06.
For its part, FedEx (FDX) was up $4.56 at $76.56 as it posted quarterly net income of $1.23 a share, easily topping the $1.06 anticipated by the Street. However, the company said its prolonged contract negotiations with Federal Express pilots will take a toll on upcoming results.
Also from the earnings front, software maker Adobe Systems (ADBE) climbed $5.87, or 15.4 percent, to $44 after reporting quarterly profit of 76 cents a share. Analysts had been looking for 64 cents.
Amazon.com (AMZN), which went ballistic Wednesday after a CIBC Oppenheimer analyst predicted the stock would hit $400 within a year, got some come-uppance as the stock was downgraded by Wheat First Union to "hold" from "outperform." Separately, Merrill Lynch reiterated a near-term "reduce" for Amazon's shares (plus a long-term "neutral"), and Needham & Co. reiterated a "hold" rating. Amazon slipped $4 to $285.
However, the company did provide a lift to EarthLink Network (ELNK), which advanced $2.81 to $63.81 on news that Amazon will be the exclusive book retailer for the Internet service provider's home page and personal start pages. Among other Net notables, Yahoo (YHOO) gained $5.87 to $211, and America Online (AOL) was $3.06 higher at $99.25.
Internet software developer Artificial Life (ALIF) staged a stealth IPO, sneaking onto the market with 1.4 million shares initially priced at $8.50 apiece. Within hours, the stock was up $14.88, or 186 percent, at $22.88. So what else is new?
Another big mover was S3 (SIII), a maker of multimedia cards for computers, which jumped $1.43, or 28 percent, to $6.47 after inking a 10-year, cross-licensing pact with Intel (INTC). The chipmaker also will purchase an undisclosed amount of S3 shares. Intel rose $2 to $116.13.
Elsewhere in tech, Dell Computer (DELL) gained $1.25 to $65.31, and International Business Machines (IBM) was $4.12 higher at $168.50. Microsoft (MSFT) rose 62 cents to $134.38, and Cisco Systems (CSCO) was up $1.62 at $84.31.
