Stocks notched small gains in late morning trading on today as investors regained some confidence after last week's attack on the world's financial center stoked fears of a global recession and tossed the market near three-year lows.
Investors had dumped stocks and triggered the biggest point loss ever for the Dow on Monday, the first day of trading after the terror attacks shuttered markets for the longest period since the Great Depression.
But the loss did not make the top 10 percentage drops and amounted to less than one-third of the harrowing slump on Black Monday, Oct. 19, 1987 -bringing some sense of relief to traders who expected a worse rout.
The frantic selling appeared to have subsided, but companies hit hard by the attacks -like airplane supplier Boeing Co. and financial services giant American Express Co. -- slid. Tech stocks gained after Oracle Corp. said its quarterly earnings would match the year-ago period, offering hope the software maker's business is stabilizing.
The Nasdaq Composite Index rose 9.56 points, or 0.61 percent, to 1,589.11. The tech-rich index sank almost 7 percent to its lowest level since mid-October 1998 on Monday.
The Dow Jones Industrial average gained 20.89 points, or 0.23 percent, to 8,941.59, after a more than 7 percent drop on Monday that tossed the blue-chip gauge to its lowest close since late 1998.
The Standard & Poor's 500 index added 2.97 points, or 0.29 percent, to 1,041.74. The broad market gauge hit its lowest finish since mid-October 1998 a day ago.
Investors, still mourning the more than 5,000 people feared dead in the tragedy, are just beginning to think of how the attacks will pressure already weak corporate earnings.
Web gear giant Cisco Systems Inc., up 48 cents at $14.48, and chip leader Intel Corp., up 68 cents at $24.27, led technology stocks higher as investors snapped up battered shares.
But Boeing, down $2.11 to $33.69, continued Monday's slide amid fears airline industry suppliers will axe workers and slash research spending as air travel shrivels.
A slew of other companies admitted that the attacks will slam their results, while some stood by financial targets.
Oracle added 30 cents at $11.31. The business software maker said its earnings will match those from a year earlier even as software license sales are hurt by business disruptions following last week's attacks.
EBay Inc. jumped $1.91 to $51.31. The online auction retailer said it is comfortable with earnings and revenue estimates -- expectations it said includes the business impact of the air attacks.
American Express Co. fell $2.26 to $27.99, pressuring the Dow. The company warned its profit would be below Wall Street estimates, because the attacks would create additional economic and market weakness throughout the travel and financial services industry.
PepsiCo Inc. added $1.45 to $49.35. The soda, snack food and cereal maker said on Monday it will buy up to $2 billion worth of its stock. PepsiCo joined dozens of U.S. companies to initiate or increase repurchase programs after last week's terror attacks.
The Standard & Poor's airlines index bounced more than 7 percent after Monday's stunning drop amid fears the travel business will shrivel.