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Wall Street takes a pause
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June 18, 1999: 10:20 a.m. ET
Stocks open mixed as investors adjust positions before weekend
By Staff Writer Malina Poshtova Zang
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NEW YORK (CNNfn) - U.S. stock markets were mixed early Friday as investors took a pause after two straight days of solid gains on Wall Street and adjusted their market positions ahead of the weekend, confident that an expected interest rate increase already is factored in and won't rattle stocks too much.
Shortly after 10 a.m. the Dow Jones industrial average was 27.23 points higher at 10,868.86. On the New York Stock Exchange, advances led declines by a small margin of 1,271 to 1,148 as 292 million shares changed hands.
The Nasdaq Composite eased 9.19 to 2,534.96 and the S&P 500 index lost 1.80 to 1,338.10.
The bond market was nearly unchanged after its strong rally Thursday, as most investors took a breather and appeared comfortable with the thought of a limited Federal Reserve interest rate increase, a scenario that Fed Chairman Alan Greenspan hinted at in his congressional testimony. The benchmark 30-year Treasury bond was up 1/32 of a point in price, for a yield of 5.96 percent.
The dollar enjoyed a wild ride, rising sharply against the yen overnight after several world central banks were said to have intervened in the market, buying euros against yen. Only the European Central Bank confirmed it had done so at the request of the Bank of Japan. As a result, the dollar eased against the euro.
Taking it in stride
Having absorbed and adjusted to the idea of a limited interest rate increase, the stock market appeared set for a breather Friday, after two straight days of gains.
Blue chip issues posted moderate advances, while the rest of the market, especially the technology sector, put in a mixed performance.
Among the day's top newsmakers, shares of razor maker Gillette (G) tumbled 5-1/2, or more than 11 percent, to 41-13/16 after late Thursday the company said its second-quarter earnings per share likely will fall 20 percent below last year's.
Gillette's warning, however, failed to rattle the broader market, as most investors found themselves content simply to square their positions ahead of the weekend.
Joining Gillette in the losers' corner, chip maker Intel (INTC) shed 2-15/16 to 55-1/16 after Mark Edelstone, analyst at Morgan Stanley Dean Witter, cut his ratings on the company to "market outperform" from "strong buy," and slashed his earnings projections for Intel for both 1999 and 2000.
On the sunny side of Wall Street, software maker Adobe (ADBE) rallied 5 to 78-7/8 after reporting second-quarter earnings that beat market estimates. 
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