Stocks Set to Jump After Saddam Capture

Stocks were set to rise sharply at Monday's open as investors welcome the capture of former Iraqi president Saddam Hussein.

Dec. 15, 2003
By Bill Rigby

NEW YORK (Reuters) - Stocks were set to rise sharply at Monday's open as investors welcome the capture of former Iraqi president Saddam Hussein.
 
A spike in share prices would carry the blue-chip Dow Jones industrial average to new highs for the year, holding it above the psychologically key 10,000 mark, which it closed above on Thursday for the first time in nearly 19 months.

Futures contracts on U.S. blue-chip stocks were trading up about 1 percent early on Monday, and futures on the technology-dominated Nasdaq 100 were up about 1.5 percent, indicating a higher open.

"It's going to be pretty monstrous," said Peter Dunay, chief market strategist at brokerage Wall Street Access. "I think we could easily see 5 percent gains on the Dow this week, as it boosts consumer confidence. This will really build on its own momentum."

U.S. blue-chip stocks rose to new highs for the year on Friday, helped by good economic data and comments from the Federal Reserve playing down the threat of inflation.

The Dow Jones industrial average closed up 34 points, or 0.34 percent, at 10,042.16, its highest close since May 24, 2002. The broader Standard & Poor's 500 Index added 2.93 points, or 0.27 percent, to close at 1,074.14, its highest finish since May 28, 2002.

The technology-heavy Nasdaq Composite Index ended up 6.68 points, or 0.34 percent, at 1,949.00, below the key 2,000 mark it broke through briefly the week before.

"The markets are pretty joyous right now because of the capture of Saddam Hussein," said Phil Flynn, vice president and senior market analyst with Alaron Trading Corp. "His capture will give consumers an upbeat feeling, which is very important heading into the holidays."

Overseas stock markets traded higher on Monday, prompted by the news of Hussein's capture. Tokyo's Nikkei average rose more than 3 percent to close at a five-week high.

Stocks to watch on Monday include Dial Corp., after Germany's Henkel said on Monday it would buy the soap and detergent maker for $2.9 billion, or $28.75 a share, in cash. Dial shares closed at $25.88 in Friday New York Stock Exchange trade.

On the technology side, Oracle Corp., the world's second-biggest software maker, is expected to post slightly higher quarterly earnings when it reports results on Monday after the bell.

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