|
U.S. blue chips retreat
|
 |
November 10, 1999: 5:24 p.m. ET
Mixed inflation data weighs on market, but Nasdaq manages another record
By Staff Writer Jill Bebar
|
NEW YORK (CNNfn) - U.S. blue chips slipped Wednesday after mixed data on wholesale inflation raised fresh concern about higher interest rates. But the tech-oriented Nasdaq recovered from Tuesday's loss to advance to a new record close.
The Nasdaq composite index rose 30.91 points, or nearly 1 percent, to 3,155.95, its eighth record close in nine sessions.
The Dow Jones industrial average slipped 19.58 points to 10,597.74, while the S&P 500 index edged up 8.18 to 1,373.46.
Losers beat gainers 1,674 to 1,371 as trading volume on the New York Stock Exchange reached an active 985 million shares.
Treasury prices ended the day lower, also pressured by the Producer Price Index report. The benchmark 30-year bond lost 6/32 of a point in price, raising its yield to 6.08 percent from 6.07 percent late Tuesday.
The dollar fell against both the yen and the euro.
Inflation news provides a mixed picture
The Producer Price Index, which measures inflation at the wholesale level, sent a mixed message to investors on whether inflation remains in check in the economy. Overall, the 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, according to the Labor Department.
The core rate increase appeared to dampen enthusiasm on Wall Street, with investors concerned the Federal Reserve may increase short-term interest rates at its monetary policy meeting next Tuesday.
Although some lingering anxiety about the core rate may continue as the Fed meeting approaches, Terence Gabriel, strategist at IDEA global.com, said the markets already have priced in a rate hike.
"The market is no longer obsessed with every little wiggle in the Dow. There is a movement into relative strength sectors such as semiconductors and Internet-related stocks," he said.
Cisco boosts techs
Technology shares regained momentum after slumping Tuesday, bolstered by a strong earnings report from bellwether Cisco Systems (CSCO). Cisco gained 5-1/4 to 79-1/2 after 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.'s forecasts of 23 cents. The stock fell during regular trading hours Tuesday.
Following the earnings report, SG Cowen raised its earnings projection for Cisco and Warburg Dillon Read maintained its "buy" rating on the stock.
Also gaining was Compaq Computer (CPQ). The world's No. 1 personal computer maker rose 1-1/16 to 21-13/16 after it unveiled a new Internet computer, the iPaq.
Investors continued to closely watch Microsoft (MSFT), the world's largest software company, after a U.S. judge late Friday issued harsh findings of fact in the landmark antitrust case against the company.
Microsoft Chairman Bill Gates addressed shareholders' questions about the lawsuit at the company's annual shareholder meeting . He said the company is "willing to go a long way to address the government's concerns" but insisted that any resolution must leave Microsoft free to add whatever functions to its products that it wishes. The stock slipped 1-3/4 to 87-1/8.
Hot IPOs
Several companies made a strong showing on their first day of trade. Microsoft's online travel unit, Expedia (EXPE), is a new member of the Nasdaq. Goldman Sachs and Morgan Stanley Dean Witter were the lead underwriters in the $72.8 million initial public offering of 5.2 million shares at $14 each. Expedia jumped to 53-7/16.
But the biggest IPO is New York Stock Exchange newcomer United Parcel Service (UPS). The company, the package delivery leader, priced its shares at $50 apiece late Tuesday, setting the value of the IPO at a record $5.5 billion. The stock rose sharply to 68.
Among the day's top gainers, NextCard (NXCD), an Internet-based consumer credit provider, soared 9-3/8, or nearly 30 percent, to 41 after the company said it will launch a credit card in a joint venture with online retailer Amazon.com (AMZN). Amazon advanced 1-3/16 to 72.
But Waste Management (WMI) suffered, tumbling 2-3/16, or more than 12 percent, to 15-9/16 after the trash-hauling firm reported a sharp third-quarter loss Tuesday.
(Click here for a look at today's CNNfn hot stocks.)
(Click here for a look at today's CNNfn technology stocks.)
|
|
|
|
|
 |
|
