Wall Street: Thursday close

WALL Street finished the first quarter with a mixed showing despite new data showing the US economy looking stronger by the day. The Dow Jones Industrial Average surrendered 22.97 points or 0.2% to 10,403.94. The Nasdaq Index rose 18.61 points or 1% to 1845.36.

For the quarter, the Dow climbed 3%, while the Nasdaq slid 6.6%. US markets will be closed on Friday for Good Friday.

The University of Michigan's consumer confidence index rose to 95.7 in March, the highest level since December 2000 and up from 90.7 in February. The Commerce Department said fourth-quarter gross domestic product grew at 1.7%, the fastest pace in a year. And the Chicago Purchasing Managers' Index, an indicator of strength in the industrial sector, came at 55.7 versus 53.1 in February.

All the numbers were above or at the high end of economists' expectations and added to the picture of a economy emerging from recession rapidly with the potential to grow at up to 4% to 6% in the current quarter. Investors have been buying economically-sensitive shares in the belief that the improving economy will bolster profits, which have sagged for the last five quarters.

Boeing, one of the biggest gainers on the quarter, continued its updraft, gaining 92 cents or 1.7% to $48.25. General Motors, also among the biggest winners in the Dow over the past three months, added 12 cents to $60.45.

Analysts said the new data fed into the theory that eventually an improving economy would pass its benefits to sectors hammered in the past two years. Telecoms suppliers were among the biggest winners, with Lucent surging 39 cents or 9% to $4.73, Nortel Networks jumping 27 cents or 6.4% to $4.49 and Motorola leaping 45 cents or 3.3% to $14.20. Telecoms joined in the rally, with AT&T up 25 cents or 1.6% to $15.70.

Some techs were lifted by the better sentiment. Microsoft, off 10% in the first quarter, rose 87 cents or 1.5% to $60.31, Intel was steady at $30.46 and IBM, among the worst performers in the Dow since 1 January, climbed 61 cents or 0.6% to $104. Sun Microsystems recovered 15 cents or 1.7% to $8.82. Cisco Systems rose 59 cents or 3.6% to $16.93.

A lawsuit questioning management tactics in the shareholder vote on Hewlett-Packard's proposed merger with Compaq Computer filed by Walter Hewlett, a son of H-P's co-founder, held H-P shares to near the flat line at $17.94. Compaq fell 15 cents or 1.4% to $10.45. H-P shares tumbled 17% in the first quarter largely due to investor concern at the Compaq deal.

Media shares were generally higher, with News Corp. ahead 48 cents or 1.7% to $28.38 despite confirming a write-off on its investment in Gemstar-TV Guide. Walt Disney was up 19 cents or 0.8% to $23.08.