أبو وليد
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- التسجيل
- 9 نوفمبر 2001
- المشاركات
- 147
Gains, Shares Fall Back as Investors Cash In
By SHERRI DAY
espite posting solid gains in early trading, stocks lost ground yesterday as investors cashed in on the market's recent run-up and pondered whether the market had advanced too far too fast.
"It's been a pretty good run since the beginning of the year, as the news that has come out has been better, but investors are sitting back saying, `Does it warrant the run we've had?' " said Erick Maronak, research director at NewBridge Partners. "More than anything, it's probably just a breather."
The Dow Jones industrial average fell 56.46 points, or 0.6 percent, to close at 10,094.09. The technology- weighted Nasdaq composite index fell 10.85 points, or 0.5 percent, to 2,044.89. The broader Standard & Poor's 500-stock index lost 5.57 points, or 0.5 percent, to 1,155.14.
For much of the day, investor sentiment was buoyed by positive comments from Cisco Systems (news/quote) and Oracle. Cisco said late Tuesday that it expected to expand its market share and acquire 8 to 12 small companies. Executives at Oracle also predicted on Tuesday that the worst was over and that it would meet earlier guidance for the third and fourth fiscal quarters.
The announcements helped send the Nasdaq composite index up more than 2 percent yesterday morning and spilled over into a solid, broad- based rally, with the Dow Jones industrial average at one point gaining more than 100 points.
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But the news from Oracle and Cisco was not enough to overshadow continuing concerns about corporate profits and the overall health of the economy. Analysts said investors were still weighing AOL Time Warner (news/quote)'s announcement that it would take a charge of $40 billion to $60 billion, as well as negative earnings reports from companies like Alcoa (news/quote).
Cisco Systems, which had risen more than 3 percent during the day, closed down 10 cents, to $20.85. Oracle gained 98 cents, to $16.73.
Avaya (news/quote), a communications equipment maker, was one of the day's big losers, dropping $2.12, to $10.35, on the Big Board. The company shocked Wall Street by warning that it expected to post an operating loss of 8 cents to 10 cents a share for its first fiscal quarter.
Analysts had been expecting the company to report a profit of 7 cents a share, according to Thomson Financial/First Call.
Shares of Merrill Lynch (news/quote) gained $1.55, to $57.99, after the brokerage firm said it would take an after-tax charge of $1.7 billion against its fourth-quarter earnings to offset the cost of about 9,000 job cuts.
The company also forecast fourth- quarter earnings of 48 cents to 50 cents a share, excluding the charge. Analysts had expected the company to post earnings of 41 cents to 58 cents a share.
Treasury Prices Rise
By Reuters
Treasury bond prices rose slightly yesterday in a session dominated by investor interest in higher-yielding corporate debt and stocks.
DaimlerChrysler (news/quote) offered nearly $3 billion in investment-grade bonds yesterday, while Freddie Mac (news/quote) started a record $7 billion sale of 10-year notes. Those offerings followed $14 billion of corporate and agency debt sales on Tuesday.
The 10-year Treasury note rose 832, to a price of 992332. The note's yield, which moves in the opposite direction from the price, fell to 5.04 percent from 5.07 percent on Tuesday. The price of the 30-year Treasury bond rose 1332, to 981132. The bond's yield fell to 5.49 percent from 5.52 percent on Tuesday.
Results of yesterday's Treasury auction of 10-year inflation notes:
By SHERRI DAY
espite posting solid gains in early trading, stocks lost ground yesterday as investors cashed in on the market's recent run-up and pondered whether the market had advanced too far too fast.
"It's been a pretty good run since the beginning of the year, as the news that has come out has been better, but investors are sitting back saying, `Does it warrant the run we've had?' " said Erick Maronak, research director at NewBridge Partners. "More than anything, it's probably just a breather."
The Dow Jones industrial average fell 56.46 points, or 0.6 percent, to close at 10,094.09. The technology- weighted Nasdaq composite index fell 10.85 points, or 0.5 percent, to 2,044.89. The broader Standard & Poor's 500-stock index lost 5.57 points, or 0.5 percent, to 1,155.14.
For much of the day, investor sentiment was buoyed by positive comments from Cisco Systems (news/quote) and Oracle. Cisco said late Tuesday that it expected to expand its market share and acquire 8 to 12 small companies. Executives at Oracle also predicted on Tuesday that the worst was over and that it would meet earlier guidance for the third and fourth fiscal quarters.
The announcements helped send the Nasdaq composite index up more than 2 percent yesterday morning and spilled over into a solid, broad- based rally, with the Dow Jones industrial average at one point gaining more than 100 points.
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But the news from Oracle and Cisco was not enough to overshadow continuing concerns about corporate profits and the overall health of the economy. Analysts said investors were still weighing AOL Time Warner (news/quote)'s announcement that it would take a charge of $40 billion to $60 billion, as well as negative earnings reports from companies like Alcoa (news/quote).
Cisco Systems, which had risen more than 3 percent during the day, closed down 10 cents, to $20.85. Oracle gained 98 cents, to $16.73.
Avaya (news/quote), a communications equipment maker, was one of the day's big losers, dropping $2.12, to $10.35, on the Big Board. The company shocked Wall Street by warning that it expected to post an operating loss of 8 cents to 10 cents a share for its first fiscal quarter.
Analysts had been expecting the company to report a profit of 7 cents a share, according to Thomson Financial/First Call.
Shares of Merrill Lynch (news/quote) gained $1.55, to $57.99, after the brokerage firm said it would take an after-tax charge of $1.7 billion against its fourth-quarter earnings to offset the cost of about 9,000 job cuts.
The company also forecast fourth- quarter earnings of 48 cents to 50 cents a share, excluding the charge. Analysts had expected the company to post earnings of 41 cents to 58 cents a share.
Treasury Prices Rise
By Reuters
Treasury bond prices rose slightly yesterday in a session dominated by investor interest in higher-yielding corporate debt and stocks.
DaimlerChrysler (news/quote) offered nearly $3 billion in investment-grade bonds yesterday, while Freddie Mac (news/quote) started a record $7 billion sale of 10-year notes. Those offerings followed $14 billion of corporate and agency debt sales on Tuesday.
The 10-year Treasury note rose 832, to a price of 992332. The note's yield, which moves in the opposite direction from the price, fell to 5.04 percent from 5.07 percent on Tuesday. The price of the 30-year Treasury bond rose 1332, to 981132. The bond's yield fell to 5.49 percent from 5.52 percent on Tuesday.
Results of yesterday's Treasury auction of 10-year inflation notes: