US blue chip stocks rose for an eighth straight day today despite a warning from the White House that the war in Iraq could be a "lengthy, dangerous engagement". After two hours of trade, the Dow Jones was up 74.86 points to 8,361.46, while the Nasdaq edged up 4.22 points to 1,406.99, though both were off earlier highs. Analysts in New York said that while last week's gains could be largely explained by short covering, institutional investors are now rejoining the market, hoping to get their cash in at the bottom of the cycle. If the industrial average holds onto today's gains, it will be its first eight session streak since November 1996, when it rallied for 10 straight days.
In Iraq today, US and UK troops have taken a number of key locations but are reported to have encountered heavy resistance at a major crossing point on the route to Baghdad. However, reports that the coalition forces may be in Baghdad in three or four days have helped the market sustain its current run. On the Dow, 22 of its 30 stocks headed higher, with industrials Caterpillar and Du Pont spearheading the gains, up 2.5pc. General Electric rose 1.6pc, while chip maker Intel added 2.1pc. //www.fxcentre.com