Mixed start on Wall Street
Major stock gauges split, with Nasdaq the weakest; selloff in chips, higher bond yields, GM, AIG all factor.
NEW YORK (CNNMoney.com) - Stocks were mixed Friday morning, as investors considered weakness in technology, a rise in bond yields, and discouraging corporate news from Dow 30 stocks AIG and General Motors. The Dow Jones industrial average (up 19.22 to 11,272.46, Charts) and the Standard & Poor's 500 (up 2.45 to 1,307.78, Charts) index both added a few points in the early going.
The Nasdaq composite (up 0.05 to 2,299.61, Charts) was little changed, with the influential semiconductor sector weighing. A selloff in chips had sent the Nasdaq lower Thursday, but the Dow industrials and S&P 500 both managed to close at their highest points since May 2001. Investors dealt with a similarly mixed market Friday morning. Among stock movers, General Motors (down $0.77 to $21.45, Research) lost more than 3 percent after saying late Thursday that its 2005 loss was $2 billion more than previously stated. The automaker and Dow component also said it would delay filing its annual report, and would have to restate some results going back to 2000 due to accounting errors. (Full Story). Fellow Dow component American International Group (Research) inched lower after reporting quarterly earnings late Thursday that fell from a year ago and missed estimates. The insurer saw a steep drop in profit due to a $1.64 billion charge it took to settle claims of fraud and bid rigging. February industrial production rose a less-than-expected 0.7 percent, according to a morning report. Capacity utilization rose 81.2 percent, just short of forecasts. The preliminary March reading on consumer sentiment from the University of Michigan matched the February reading at 86.7. Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.67 percent from 4.64 percent late Thursday. Bond prices have been rallying for several days, and likely suffered some profit taking Friday. Bond prices and yields move in opposite directions. U.S. light crude oil for April delivery fell 9 cents to $63.49 a barrel in electronic trading. COMEX gold for April delivery rose 60 cents to $556 an ounce. In global trade, major Asian markets ended higher and European markets rose at midday. ______________ Click here for the latest business news. |
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