Wall Street ends week down

NEW YORK — Investors took some chances on blue chip stocks Friday, picking up bargains after the Dow Jones industrials' nearly 900 point drop over the past two weeks. But the buying wasn't enough to save Wall Street from its third straight weekly decline, a slide not seen in nearly four months, or from heavy losses for the month.

Analysts attributed the day's gains to investors seeking lower-priced stocks rather than improving sentiment about the market or the economy, especially since the news on both fronts was mixed Friday. The blue chip advance came despite investors' ongoing concerns that a war with Iraq would derail what's already been feeble economic progress.

"Is there anything that has significantly changed that justifies or is driving this rally?" said Hugh Johnson, chief investment officer at First Albany Corp. "And, my answer to that question is, 'No.' "

The Dow closed up 108.68, or 1.4 percent, at 8,053.81. For the week, the Dow lost 1 percent.

The broader market was mixed with technology issues slipping on signs of further weakness in the chip sector. The Nasdaq composite index fell 1.44, or 0.1 percent, to 1,320.91. The Standard & Poor's 500 index rose 11.09, or 1.3 percent, to 855.70. For the week, the Nasdaq fell 1.6 percent and the S&P lost 0.7 percent.

All three indexes endured declines in eight of the previous 11 sessions. Over that period, the Dow plummeted 897.49. And, despite Friday's surge, the indexes suffered their third straight weekly losses, which hasn't happened in almost four months, or since the period that ended Oct. 4.

Likewise, it was a bad month for Wall Street. For January, the Dow fell 3.5 percent, the Nasdaq declined 1.1 percent and the S&P lost 2.7 percent.

Analysts were dubious that any buying would be long-lasting. Investors have been refusing to commit to stocks before knowing whether there will be a war with Iraq.

While the market typically begins to lift after military action is undertaken, and more so if it is successful, analysts warn investors not to count on that happening this time given the already dismal state of earnings and the economy.

"What happens if we go to war, win the war and the market keeps going down?" said Gary Kaltbaum, market technician for Investors' Edge Partners in Orlando, Fla. "I just think (stock) valuations are too high and earnings are still pretty bad."

Friday's economic news was mixed.