Analysts Wary Despite Dow's Gain of 32
The nation's financial markets rebounded today from a two-day selling binge brought on by the stall in talks on eliminating the federal budget deficit, but analysts said they expected future trouble from the economy and the Washington debate.</br></br>The Dow Jones industrial average rose 32.16 points to close at 5065.10, boosted in part by investors buying semiconductor stocks and expressing new confidence in financial service and software companies.</br></br>The Dow plunged 165 points, more than 3 percent, Tuesday and Wednesday because of bad news from some technology companies and reports that the long-anticipated deficit reduction agreement in Washington might be beyond reach.</br></br>Marshall Acuff, portfolio strategist at Smith Barney Inc., said it was no surprise that "there would be some rebound after the pounding the markets took the last two days, but beyond that I'm not sure there is much to get excited about."</br></br>Analysts cited continued indications of a sluggish economy and disappointing fourth-quarter corporate earnings reports as rough spots for traders and investors in the next several weeks. They said they expected the market would continue to bounce up and down in reaction to statements from Washington on how the budget talks are faring.