WallStreet 16 Sep 2005

WallStreet investors threw caution to the winds overnight and bought rightacross the boards. They brushed aside the worst consumer confidence figure since1992 that should have knocked equities sideways. Instead all the indices surged higher but not enough to wipe outdeficit registered earlier in the week.
On the week the Dow lost a meagre 37 points while the S&P 500shed 4, the Nasdaq composite down 15 and the 100 index off 8. Overnight the Dow was up 83, the S&P 500 10, the Nasdaq composite14 and 100 index up 11.
Analysts suggest the answer is in a series of corporate upgradesmaking stocks more attractive. They are factoring in a perception that companies will do evenbetter as President George W. Bush renews his pledge to rebuild the GulfCoast after Hurricane Katrina.
It brightened the outlook for the economy and corporate profits.
Companies such as Louisiana-Pacific Corp. that stand to benefitfrom the reconstruction helped lead the gains.
Adobe Systems Inc., the world's biggest maker of graphic-designsoftware, climbed as profit beat analysts' estimates.
It tended to offset the September consumer sentiment indexplunge to 76.9 from August's 89.1 in a post-Katrina reading from theUniversity of Michigan.
US consumer confidence fell to the lowest since 1992 afterHurricane Katrina devastated the Gulf Coast and pushed gasoline prices toa record high, raising concern that Americans may curtail spending. But The US current-account gap narrowed in the second quarter,but the deficit of $195.7 billion was still the second largest ever. Analysts forecast for a deficit of $193.0 billion. The Commerce Department revised the first quarter gap to a record$198.7 billion versus a $195.1 billion deficit initially reported. Better news came from another fall in the price of October crudeoil, down $1.75 to $63 barrel on the New York Mercantile Exchange. The US dollar traded mixed while the Aussie dipped 24 points toUS76.71c. In metals gold was the star performer, climbing another $4 to$459.50 oz on the COMEX spot month, making a gain of more than $13 overthe last three trading days