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Factory Sector Stabilizing,
NAPM Survey Suggests
1The National Association of Purchasing Management's activity index shot up to 47.9 in August from July's 43.6. The surge gives hope factories' slide is near bottom, or at least their performance is deteriorating more slowly. It was the 13th straight monthly reading below 50, showing contraction in the sector. But the production index poked above 50 -- indicating expansion -- for the first time in nine months. New orders also broke above 50, its first success in 13 months. The prices paid index plunged, showing inflation is nowhere in sight. More on A11
Early Rally Takes Powder;
Slide Of Nasdaq Resumes
2The Dow, up 232 points or 2.3% intraday, settled for a more modest 0.5% gain. The S&P 500 fared worse, turning an early jump into a 0.1% loss. The Nasdaq shed 1.9% as tech investors seemed unimpressed with Hewlett-Packard's planned $25 billion takeover of Compaq Computer. Volume expanded on the Nasdaq and NYSE vs. Friday's light pre-holiday trading. Fiber-optic network and component makers, IBD's two bottom-ranked groups, tanked again. More on A16
HP Aims To Buy Compaq,