Newspaper article THE JOURNAL RECORD

Stock Barometers Close Mixed

Newspaper article THE JOURNAL RECORD

Stock Barometers Close Mixed

Article excerpt

NEW YORK (AP) -- Wall Street's rally stalled Wednesday as investors cashed in some of their profits from two days of big gains. But the technology sector still managed to advance for a third straight day, an achievement not seen since early April.

Analysts said the market was tentative following mixed economic news -- a rise in consumer prices and an increase in industrial production. Investors are wary of sending stocks much higher, particularly after the Dow Jones industrials surged a total of 358 points on Monday and Tuesday.

"The evidence mounts that we are on the recovery side of things, and the economists are bullish. But we aren't going to have a big rally until we get some confirmation of earnings and revenue growth," said Philip Dow, managing director of equity strategy at Dain Rauscher Wessels in Minneapolis.

The Dow closed down 54.46, or 0.5 percent, at 10,243.68.

The broader market was mixed. The Nasdaq Composite index rose 6.51, or 0.4 percent, to 1,725.56, after a two-day gain of 118.20. The Nasdaq hadn't had three consecutive wins since a four-day rally March 26 through April 1.

The Standard & Poor's 500 index fell 6.21, or 0.6 percent, to 1,091.07, after rising 42.29 Monday and Tuesday.

Many analysts believe the market's recent selloff climaxed last week when the major indexes closed at levels not seen since early October. In the short run, they expect the indexes to trade within a narrow range.

"I don't think we are quite through with the down days, but I think we are at the end of the decline," said Al Mirman, strategist at V Finance in Sarasota, Fla.

Mirman added that the market can't keep rising at the intense pace of Monday and Tuesday because technical factors -- short- covering and lower prices -- were the catalysts rather than a change in fundamentals like earnings growth. …

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