Dow gains for sixth day in a row for first time since August 2000

www.cbc.ca 03:05 PM EST Mar 20

TORONTO (CP) - With the zero-hour for a war in Iraq approaching, the closely watched Dow average of blue-chip stocks rose Wednesday to close up for a sixth session in a row - something that hasn't happened since August 2000.

Most North American stock markets and gained on reports that U.S. planes attacked several artillery batteries in southern Iraq. Hopes for a short war also fired up the U.S. dollar, in turn driving the Canadian currency lower by 0.37 of a cent to 67.45 cents US.

As the greenback rose, the euro fell to $1.0562 US, down from $1.0621.

But generally the tone on stock markets Wednesday was of caution ahead of the expiry of the U.S. ultimatum to Saddam Hussein, even as U.S. forces began moving through the Kuwaiti desert towards Iraq.

In New York, the Dow industrial average gained 71.22 points to 8,265.45. The Dow has racked up more than 700 points in the last six sessions as investors bet any war will be short.

"It has sort of slowed down in intensity from what we've seen in the last couple of days, but the equity markets are proving remarkably resilient here," said Scott Kinnear, economist with MMS in Toronto.

Toronto's S&P/TSX composite index moved 14.87 points higher to 6,453.48. The junior TSX Venture Exchange was up 1.02 points at 1,063.02.

The Nasdaq lost 3.47 points to 1,397.08 while the S&P 500 was ahead 7.57 at 874.02.

Generally, stock markets have been driven higher since the middle of last week as investors looked to the rally that followed the start of the 1991 Persian Gulf War and hoped that history would repeat itself.

"The general feeling out there is that there will be a quick war so you don't necessarily want to wait for the start of the war because by that time it will be too late," Kinnear said.

But there are plenty of reasons for caution, including the possibility of torched oil fields, use of biological weapons and terrorist attacks.

In corporate news, shares in DuPont Canada soared $4.35 to $21.59 after its U.S. parent offered $1.4 billion to shareholders to take the firm private. The two companies announced that DuPont will offer $21 a share to buy the 24 per cent of DuPont Canada stock it doesn't already own.

Softness on the Nasdaq came after software maker Oracle Corp. reported a cautious outlook for a recovery in technology spending late Tuesday.

The company posted a 12 per cent rise in fiscal third-quarter profit and said revenue grew modestly, helped by growth in sales of software upgrades to existing customers.

But the company said revenue from new software licences and sales of its flagship database product line each fell four per cent. Its shares were down 94 cents to $11.31 US.

Lowered fears about a shortage of oil as a result of a new war in the Persian Gulf took crude prices beneath $30 US a barrel. Futures lost another $1.79 to $29.88 US a barrel on top of Tuesday's $3.25 US plunge.

While U.S. crude inventories remain uncomfortably low, OPEC producers other than Iraq and strife-torn Venezuela have been increasing production for weeks.

Much of that oil is now in storage or in tankers on the high seas, say oil analysts.