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Stocks get mixed finale
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June 25, 1999: 4:56 p.m. ET
Blue chips end slightly higher, others nearly unchanged; eyes on rates
By Staff Writers Malina Poshtova Zang and Robert Scott Martin
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NEW YORK (CNNfn) - U.S. stock markets made their way to a mixed close Friday as investors opted for caution ahead of a week that is widely expected to bring in a Federal Reserve interest rate increase.
A small rally in the morning gave way to profit taking in the afternoon, despite modest declines in bond yields and economic data that was largely ignored.
A report showing that gross domestic product grew at an annualized rate of 4.3 percent in the first quarter, although slightly above expectations, seemed to stir few jitters in the market. Wall Street has been on an interest rate watch for weeks, as data have showed strong growth and a possible slight pickup in inflationary pressures.
The Federal Reserve is holding a two-day policy meeting Tuesday and Wednesday and is expected to raise its key short-term rate, the fed funds rate, at least a quarter of a percentage point.
The Dow Jones industrial average rose 17.73 points to end the week at 10,552.56. On the New York Stock Exchange, declines barely led advances 1,494 to 1,455 as a weak 615 million shares changed hands the lightest trading volume so far this year. The Dow retreated 2.79 percent this week, trimming its gain for the year to 14.93 percent.
Profit taking was more intense in the technology-heavy Nasdaq Composite, which fell 1.34 points to 2,552.65. The S&P 500 index finished nearly unchanged, down 0.47 at 1,315.31. The Nasdaq scaled back 0.42 percent this week, slightly reducing its gain for the year to 16.42 percent. The S&P shed 2.05 percent for the week, its gain for the year dropping to 7.00 percent.
The bond market finished slightly higher. The benchmark 30-year Treasury bond rose 4/32 of a point in price, for a yield of 6.15 percent.
The dollar eased against both the yen and the euro.
Rate fixation
In the stock market, investors kept in mind the possibility of higher interest rates and watched the latest earnings pre-announcements ahead of the second-quarter corporate reporting season.
On the earnings front, shares of Campbell Soup (CPB), the world's largest soup maker, lost 5/16 to 42-1/8 after the company said fiscal fourth-quarter profit per share would fall as much as 10 cents below the 38 cents Wall Street had bet on. Campbell also announced the launch of a global restructuring program, aimed at streamlining costs.
Also making news Friday, shares of aerospace powerhouse Lockheed Martin (LMT) jumped 11/16 to 35-7/8 after the Wall Street Journal reported the company is looking to sell as much as $1 billion of its assets and is searching for a strategic telecommunications partner as part of a strategic review of its operations.
Finally, in the day's news of failed deals, shares of drug developer Parexel (PRXL) tumbled 3-15/16 to 13, a loss of more than 23 percent, after the company and would-be partner Covance (CVD), another drug development firm, called off their $526 million merger, citing the interest of shareholders. Covance shares gained 3-7/16, or almost 16 percent, to 25.
Parexel's stock plunged 21 percent Thursday amid speculation in the market that the planned corporate union was in trouble.
(Click here for a look at today's list of CNNfn's market movers.)
(Click here for today's CNNfn technology stocks report) 
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