Newspaper article THE JOURNAL RECORD

Profit-Taking Deflates Stocks; Dow Stays above 6,000 Level

Newspaper article THE JOURNAL RECORD

Profit-Taking Deflates Stocks; Dow Stays above 6,000 Level

Article excerpt

NEW YORK (AP) -- The Dow Jones industrial average see-sawed sharply Tuesday, ending slightly lower, as investors alternated between excitement over good earnings news and profit-taking on the Dow's historic close above 6,000 on Monday.

Most stock measures also fell, but the technology-rich Nasdaq market managed a small gain, padding Monday's record finish as Intel's profit report spurred more enthusiasm for computer-related shares.

The Dow fell 5.22 to 6,004.78, rebounding from a nearly 40-point deficit that followed an early 34-point gain. On Monday, the famed blue-chip barometer notched its first close above 6,000, strolling to a 40-point gain in light holiday trading. Some big deals -- an $8.4 billion rail merger between CSX and Conrail and a $1.5 billion takeover by Warren Buffett's Berkshire Hathaway -- spiced up the session, but trading was dominated by the first barrage of third-quarter earnings reports, which were largely encouraging. Analysts had expected robust results from Intel, which last month said demand for its computer chips would drive third-quarter profits above expectations. But the final tally, reported late Monday, even outstripped Wall Street's revised estimates. Intel is closely watched because its microprocessors run about three quarters of all personal computers, making its results a barometer for demand in all PC- related industries. General Motors, meanwhile, followed through on Monday's strong showing by Chrysler, beating forecasts with a third-quarter profit that nearly doubled last year's earnings for the period. And GM wasn't the only Dow component with positive earnings news. Caterpillar, the Dow's biggest gainer, and Eastman Kodak both exceeded expectations with their third-quarter profits. Analysts said the market's initial burst higher triggered a wave of computer-driven trading to secure profits on the market's record- setting advance. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.