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Investor's Business Daily

| January 05, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Factory Activity At 20-Year High

1The ISM manufacturing index climbed 3.4 points to 66.2 in Dec., well above the boom-bust 50 mark. Economists had expected a small drop. The new orders index shot up to its highest level since 1950. Inventories declined for the 34th time in 35 months. The employment index hit a four-year high, suggesting factory hiring may finally resume. More on this page, A2

Bond Yields Soar On ISM Data

2The surprisingly strong manufacturing report raised fears that the Federal Reserve may raise interest rates sooner than previously expected, sparking a sell-off in Treasuries. The yield on the 10-year Treasury note jumped 12 basis points to 4.37%, the highest close in a month, in a holiday-shortened session and week. More on A19

Mixed Trade Caps Holiday Week

3 The Nasdaq rose 0.2% in slightly lower trade. The S&P 600 added 0.2%. But the Dow sank 0.4%, the S&P 500 0.3% in higher trade. But NYSE volume was below average. China-related stocks soared. The Nasdaq climbed 1.7% in the holiday-shortened week, the S&P 500 1.1%, the Dow 0.8%, the S&P 600 0.4%. More on this page, B2

U.S. To Visit Korea Nuclear Site

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