Newspaper article THE JOURNAL RECORD

S&P, NASDAQ Decline; DJIA Up Slightly

Newspaper article THE JOURNAL RECORD

S&P, NASDAQ Decline; DJIA Up Slightly

Article excerpt

NEW YORK (Bloomberg) -- U.S. stocks fell Monday, led by computer- related companies including America Online, on concern the No. 1 online service company will cut subscription fees to stay competitive.

"People are questioning whether AOL can maintain its pricing model," said Ted Bridges, who manages $1.5 billion for Bridges Investment Counsel in Omaha. "If you have a lot of Internet service providers giving access for free, how can you justify AOL's (subscription) price?"

The Standard & Poor's 500 Index dropped 7.53, or 0.6 percent, to 1,344.13, led by Intel, AOL and Microsoft. The Nasdaq Composite Index, dominated by computer-related shares, retreated from Friday's record, sliding 42.28, or 1.5 percent, to 2,844.78.

Computer-related stocks "have been outperforming so many other things it's only normal (to see a decline) after the gains we've had," said Charles Henderson, chief investment officer at Chicago Trust, which oversees $10 billion and includes Cisco Systems, Microsoft and Sun Microsystems among its core holdings.

The Dow Jones Industrial Average rose 1.90 to 11,030.33, with International Paper posting the biggest gain. Three stocks fell for every two that rose on the New York Stock Exchange.

Stocks weren't helped by a decline in the dollar. The yen rose to a three-year high of 106.57 against the U.S. currency on expectations investors will shift more funds into Japanese stocks to bet on an economic rebound.

As the dollar weakens, investors risk losing any profits through currency depreciation.

`'The weaker dollar just makes assets a little less attractive, and there may be a little money floating off to Japanese investments," said Jim Herrick, managing director at Robert W. Baird & Co. in Milwaukee. Tokyo's Topix Index is up 51 percent in dollar terms year to date, compared with 9 percent for the S&P 500. …

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