Shares of companies with products that can be used to protect people from biological or chemical attacks gained.
Cepheid Inc, a maker of systems that detect disease-causing agents, rose US$2.31 to US$7.78. The stock is more than five-times higher than before Sept. 11. Cepheid's GeneXpert, which should be introduced this quarter, detects contamination in a variety of substances, including blood.
Nanogen Inc soared US$1.05, or 14 percent, to US$8.61. The biomedical equipment maker earlier this week said it received a grant from the US Army for $1.5 million to aid its development of miniaturized electronic devices for detecting biological warfare agents in human blood samples.
Investors bought shares of companies whose earnings prospects are improving.
Juniper Networks Inc advanced US$4.42 to US$21.06. The No. 2 maker of gear to direct Web traffic gave a fourth-quarter forecast that beat estimates.
Its larger rival Cisco Systems Inc, the world's biggest computer-networking company, gained 49 cents to US$16.95 and Ciena Corp, a maker of fiber-optic equipment, rose US$1.89 to US$17.13.
"People are looking for a recovery sometime next year," said Joseph DeMarco, a trader at HSBC Asset Management Inc, adding that investors are "starting to feel more confident [and are] looking for places to put their money."
DoubleClick Inc climbed US$0.65 to US$8.14. The online advertising company said it would have a narrower-than-expected fourth-quarter loss, excluding non-cash and one-time charges, as it cut jobs to reduce expenses.
Network Associates Inc advanced US$0.38 to US$18.38. The software maker said fourth-quarter profit, excluding non-cash and one-time charges, would top estimates.
Storage Technology Corp gained US$2.03 to US$15.08. The maker of computer data-storage systems said it expects third-quarter profit to exceed analysts' forecasts because cost-cutting.
NRG Energy Inc gained US$0.93 to US$19.05 after the owner and operator of power generators reported third-quarter profit that beat estimates as it acquired and built more power plants.
TheraSense Inc rose US$5.92 to US$24.92 after the developer of a less painful way for diabetics to test their blood sugar raised US$114 million in an initial stock sale, the second IPO since Sept. 11.
All three major US stock indexes hit their low for the year on Sept. 21, the end of the first week of trading in US stocks following the terrorist attacks. Some investors said those levels may not be their low point for the year.
"We could test the lows again," said Patrizio Merciai, chief strategist at Lombard Odier in Geneva, Switzerland, which manages US$60 billion. "All the data until the end of the year will be pretty awful, and we have to discount that."
The Russell 2000 Index of smaller stocks dropped 2.45, or 0.6 percent, to 428.59. The Wilshire 5000 Total Market Index, the broadest measure of US shares, declined 59.92, or 0.6 percent, to 10,049.12, indicating the market value of US stocks declined US$68.9 billion. Since the attacks, the value of US stocks has dropped US$63.6 billion.
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