Newspaper article THE JOURNAL RECORD

Stocks End Mixed amid Interest Rate Concerns

Newspaper article THE JOURNAL RECORD

Stocks End Mixed amid Interest Rate Concerns

Article excerpt

NEW YORK (AP) -- Stocks drifted to a mixed finish in the quietest session of the year Monday as investors worried about interest rates and took profits from a modest rally on Friday. Technology stocks fell.

The Nasdaq Composite index fell 147.44 to close at 3,669.38 and the Dow Jones Industrial Average rose 25.77 to close at 10,603.63.

Broader stock indicators were mostly lower. The Standard & Poor's 500 fell 8.46 to 1,424.17.

Traders said the most significant action in the market came from investors selling stocks to capture short-term gains from a solid rally Friday, when the Dow rose 165 points and the Nasdaq rose 96.

Technology stocks, which led Friday's gains, were mostly lower Monday. Hewlett-Packard fell 1.0625 to 135.6875 and Intel dropped 5.75 to 117.5.

Sun Microsystems fell 5.125 to 85.375 and PMC-Sierra fell 12.5 to 167.5.

Cisco dropped 5 to 62.75 after an article in Barron's said the company's stunning growth rate could slow if Cisco stops acquiring companies at a rapid rate.

Beyond the technology sector, investors stayed resolutely on the sidelines, pondering the May 16 meeting of the Federal Reserve, which is expected to raise interest rates for the sixth time since last June.

Many economists expect the Fed to raise rates by as much as a half-percentage point. The last five rate increases have come in a series of modest, quarter-percentage point hikes.

"The momentum in the economy gives the Fed ample reason to boost rates" by a half-point, said Joseph T. Keating, chief investment officer for the Kent Funds in Grand Rapids, Mich.

While some Wall Street analysts believe investors would welcome a sharper increase as a sign that the Fed is finally nearing the end of its cycle of rate increases, the uncertainty has contributed to a sharp drop in trading activity in the past few sessions. …

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