Dow closes higher, tech stocks fall again
By Michael J. Martinez
Associated Press
NEW YORK — Stocks were mixed today as investors sought a direction for the market after a major selloff the day before. The Dow closed higher, while technology stocks fell for a third straight session.
Investors wrestled with how to view yesterday's 141-point drop in the Dow Jones industrial average — as a buying opportunity or a sign of a market correction — and how the Federal Reserve's changing stance on interest rates would factor in.
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"The market is on a precarious perch right now," said Bryan Piskorowski, of Wachovia Securities. "Fundamentals are definitely robust, but there's always the question of how robust they'll be down the road."
According to preliminary estimates, the Dow was up 41.92, or 0.4 percent, at 10,510.29 in heavy trading as investors searched for bargains after the selloff.
Broader stock indicators were mixed. The Standard & Poor's 500 index was up 5.63, or 0.5 percent, at 1,134.11, and the Nasdaq composite index finished down 9.14, or 0.4 percent, at 2,068.23. The Nasdaq has lost 85.60, or 4 percent, since Monday's close.
Many on Wall Street hoped the Fed's interest rate statement was an excuse to lock in profits rather than the beginning of a larger selling trend.
But trading volatility persisted.
"It's the craziness of expectations," said Peter Dunay of Wall Street Access. "If there is a pullback, it will temper expectations and let the economy, which is pretty strong, catch up to the expectations."
New economic data from the government did not provide a clear picture of the pace and health of the recovery. First-time jobless claims for the week fell by 1,000 to the lowest level since the end of December. However, wages and benefits grew by only 0.7 percent, the lowest monthly rise in a year. Wall Street was looking ahead to tomorrow's gross domestic product figures and next week's January payroll data for a better read on the overall economy.
Exxon Mobil Corp. posted a record yearly profit and beat analysts' estimates for the fourth quarter by 10 cents per share.
Eli Lilly & Co.'s earnings matched analysts' expectations with a 1 percent growth in profits from a year ago.
Verizon Communications Inc., burdened with nearly $3 billion in one-time expenses due to voluntary job buyouts, nonetheless beat Wall Street expectations by 2 cents per share.
Halliburton Co. announced that it took a $1.1 billion charge related to asbestos lawsuits. The firm beat analysts' estimates by 2 cents per share without the one-time expenses.
Declining issues outnumbered advancers by 3 to 2 on the New York Stock Exchange. Preliminary volume was 1.84 billion shares traded, compared with 1.64 million shares yesterday.
The Russell 2000 index of smaller companies was down 4.05, or 0.7 percent, at 579.86.
Japan's Nikkei stock average fell 0.7 percent. Britain's FTSE 100 and Germany's DAX were down 1.3 percent. France's CAC-40 finished 1.2 percent lower.
