Magazine article American Banker

Tech Stocks Trail Ever-Rising Dow

Magazine article American Banker

Tech Stocks Trail Ever-Rising Dow

Article excerpt

Bank technology stocks remained mixed last week, as investors' search for longer-term investments led to purchases of more conservative shares.

But the market in general soared on the Federal Reserve's decision to leave interest rates alone, and on economic reports suggesting continued economic growth with low inflation.

The Dow Jones industrial average gained another 128.21 points for the week, and closed Friday at 6,348.03. In the last month, the Dow has risen nearly 6%.

The S&P 500 gained 6.82 points, closing at 737.62, while the Nasdaq composite, where many technology companies are traded, rose 4.29 points, to close at 1,261.79.

In general, bank technology stocks did not fare as well. About half of the companies on American Banker's technology stock list registered share price losses in the last week.

Richard K. Weingarten, an analyst with Montgomery Securities in San Francisco, attributed at least some of the lackluster performance to individual investor selloffs triggered by the coming end of the tax year.

Many of these companies will rebound in January when the "selling pressure is off," he said.

First Data Corp. was one of the financial technology firms registering a gain last week. The company's stock rose $1.875 for the week, closing at $83.625.

In news affecting the company, First Data's Telecheck Services unit, a check acceptance company, said it has bought Southern Telecheck Inc. for an undisclosed sum. Metairie. La.-based Southern Telecheck serves about 2,800 merchants. …

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