20000324

Stocks rally

NEW YORK: U.S. stocks rallied at midday on Thursday on speculation that Microsoft Corp., a Dow Jones industrial component that is also listed on the Nasdaq market, was wrapping up settlement talks with the U.S. government in its antitrust case.

The Dow Jones industrial average .DJI jumped 126 points, or 1.16 percent, to 10,993, after stumbling at the opening. Microsoft's rise accounted for more than a third of the 30-stock index's gain.

Microsoft jumped 6-3/4 to 110, making it the top mover on the Nasdaq and biggest points gainer in the Dow, after people familiar with the situation said the talks are nearing either a settlement or resumption of the trial.

The central bank on Tuesday raised borrowing costs as expected by 25 basis points but warned of future interest-rate increases, possibly at its next meeting in mid-May.

The technology-heavy Nasdaq composite index .was up 71.15 points, or 1.47 percent, at 4,920.94, a day after it scored its fifth-largest points gain ever. The 30-year U.S. Treasury bond gained 30/32, with the yield falling to 5.90 percent from Wednesday's close of 5.96 percent.

The stronger bond market gave banking stocks a lift with the Philadelphia Stock Exchange's bank index up 0.81 percent.

On the New York Stock Exchange, advancers were beating decliners 7 to 6 with about 480 million shares changing hands. There were 58 stocks hitting new highs and 21 hitting new lows.-Reuters

Cotton easier

NEW YORK: Cotton futures slightly easier due to bouts of speculative sales with trade support seen near the lows at midsession on Thursday.

May cotton declines 0.41 to 59.45 cents a lb at 1130 EST, trading 59.80-59.15 cents. New crop December off 0.30 to 61.40 cents.

Analysts peg resistance in May cotton at 61 cents whilst support is seen at 59 cents.-Reuters