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Wall St.'s mixed bag
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November 10, 1999: 10:25 a.m. ET
Dow down, Nasdaq up; core rate of producer price report concerns investors
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NEW YORK (CNNfn) - U.S. stocks were mixed in early trading Wednesday, with blue chips declining after the October wholesale inflation report gave a mixed picture to investors regarding whether inflation remained under control. But the tech-heavy Nasdaq index showed signs of rebounding from Tuesday's decline.
Shortly before 10 a.m. ET, the Dow Jones industrial average fell 33.72 points to 10,583.60. Losers beat gainers 1,340 to 745 as trading volume on the New York Stock Exchange reached 80 million shares.
The Nasdaq composite rose 31.45 to 3,156.49 and the S&P 500 index edged up 4.41 to 1,369.69.
Treasury prices fell sharply after the Producer Price Index report. The benchmark 30-year bond lost 15/32 of a point in price, raising its yield to 6.10 percent from 6.07 late Tuesday.
The dollar was virtually flat against both the yen and the euro.
Inflation news provides a mixed picture
The Producer Price Index (PPI), which measures inflation at the wholesale level, sent a mixed message to investors about whether inflation remained in check in the economy. Overall PPI fell 0.1 percent in October. However, the core rate, which excludes volatile food and energy prices rose 0.3 percent, reflecting an increase in car prices, the Labor Department said Wednesday.
The core rate increase appeared to dampen enthusiasm on Wall Street, with investors now concerned the Federal Reserve may increase short-term interest rates at its monetary policy meeting next Tuesday.
Nevertheless, there was some buying. Among the top gainers, NextCard (NXCD), an Internet-based consumer credit provider, soared 14-1/8, or nearly 45 percent, to 45-3/4 after the company said it will launch a credit card in a joint venture with online retailer Amazon.com (AMZN). Amazon advanced 1-5/16 to 72-1/8.
Technology shares regained momentum after slumping on Tuesday. Bellwether Cisco Systems (CSCO) rebounded, rising 3-13/16 to 78-1/16. The company late Tuesday posted first-quarter operating profit of 837 million, or 24 cents per diluted share, up from $561 million, or 17 cents, in the year-earlier period. The world's largest maker of Internet equipment beat earnings tracker First Call Corp. forecasts of 23 cents. The stock fell during regular trading hours Tuesday.
Investors continued to closely watch Microsoft (MSFT), the world's largest software company, after a U.S. judge late Friday issued a harsh findings of fact in the landmark antitrust case against the company.
Microsoft's online travel unit, Expedia (EXPE), is a new member of the Nasdaq. Goldman Sachs and Morgan Stanley Dean Witter underwrote the $72.8 million offering of 5.2 million shares at $14 each. Microsoft slipped 15/16 to 87-15/16 and Expedia was not yet trading.
In addition, Microsoft's shareholder meeting was scheduled this morning in Bellevue, Wash.
But the biggest IPO of the day is New York Stock Exchange newcomer United Parcel Service (UPS). The company, one of the package delivery leaders, priced its shares at $50 a piece late Tuesday, setting the value of the IPO at a record $5.5 billion. The stock was not trading early Wednesday.
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