The stock market closed out a horrendous October, its worst month in 21 years, with a big advance Friday as more investors took chances on stocks turned into bargains by waves of intense selling. The advance - which gave the market its first back-to-back gains in more than a month - raised hopes that Wall Street has indeed found a bottom. October marked the Dow's worst percentage loss since 1987. But the 11.3 percent gain for the week gave the Dow its best weekly performance since Oct. 11, 1974. The Dow Jones industrials rose 144 points on the day but ended the month down 14.1 percent, while the broader Standard & Poor's 500 index lost 16.9 percent during October as the stock market fell victim to investors' anguish over frozen credit markets and what looked like an inevitable recession. The Dow was up 11.3 percent, while the S&P 500 index rose 10.5 percent - a sign of stability that followed a growing sense that the series of government moves to unlock the credit markets would indeed help the economy move toward recovery. The Dow rose 144.32, or 1.57 percent, to 9,325.01 after rising as much as 274 and falling 62. Broader stock indicators also advanced. The S&P 500 index rose 14.66, or 1.54 percent, to 958.75, while the Nasdaq composite index rose 22.43, or 1.32 percent, to 1,720.95. The Russell 2000 index of smaller companies rose 23.34, or 4.54 percent, to 537.52. Advancing issues outnumbered decliners by about 5 to 2 on the New York Stock Exchange, where volume came to a moderate 1.57 billion shares. Lighter volume can raise questions about the conviction behind the market's moves. Japan's benchmark stock index closed down 5 percent as investors shrugged off an interest rate cut by the central bank and instead unloaded shares for quick profits ahead of a long weekend. Tokyo markets will be closed Monday for a national holiday. The Nikkei 225 index lost 452.78 points to close at 8,576.98 points after soaring 10 percent Thursday. Britain's FTSE 100 index edged up 16.07 points, or 0.4 percent, to 4,307.72 despite a 20 percent plunge in the share price of telecommunications company BT PLC after it issued a profit warning. South Korea's benchmark stock index extended gains as foreign investors stayed net buyers for a third straight day. The South Korean won slipped against the US dollar. The Korea Composite Stock price Index rose 28.34 points, or 2.6 percent, to close at 1,113.06, the Kospi's fourth gain this week. Chinese shares fell as worries resurfaced about weakening corporate earnings and the prospect of slowing growth. The benchmark Shanghai Composite Index was down 2 percent, or 34.82 points, to 1,728.79. The index ended the month down nearly one-quarter, or 565 points, from where it started. The smaller Shenzhen Composite Index dropped 1.4 percent to 470.91. Philippine shares soared for the third day as lower US interest rates boosted investors' appetite for bargain stocks. The Philippine Stock Exchange index rose 86.16 points, or 4.62 percent, at 1,951.09. The index has advanced 14.47 percent in the last three days.
