NEW YORK -- U.S. stocks were mixed today after a rally sparked by a Federal Reserve rate cut fizzled. Hewlett-Packard Co. declined after warning of lower earnings, offsetting a rally in brokerages such as Merrill Lynch & Co. Dow off 24.97
The rate cut is "good for the market in that lower rates mean less competition from the fixed-income markets for investors' dollars," said Joe Stocke, a senior portfolio manager at Meridian Investment Co., a unit of First Union Corp. that oversees $2.5 billion.
The Dow closed 24.97 lower at 8,986.28, with Hewlett-Packard accounting for the entire loss. The Dow rose as much as 91 points after the Fed announcement, rebounding from an 82-point drop. The Standard & Poor's 500 index rose 3.46 to 1,139.32. The Nasdaq composite index gained 16.84 to 1878.52.
Advancers barely outnumbered decliners on the New York Stock Exchange -- with 1,493 up, 1,494 down and 551 unchanged -- while Nasdaq decliners led by a 5-to-4 margin.
NYSE volume totaled 699.03 million shares, up from 610.09 million yesterday.
The NYSE composite index rose 0.74 to 561.02, and the American Stock Exchange composite index fell 0.83 to 666.89.
The Russell 2000 index of smaller companies fell 0.99 to 389.43.
The 30-year Treasury bond slipped 2/32 to 99 10/32, with the yield rising to 5.30 percent.
Hewlett-Packard, the No. 3 computer maker, dropped $6.06 to $60.06 after warning that first-quarter earnings may fall and fiscal 1999 sales won't meet forecasts as it struggles with increased competition and weakness in Asia and Latin America.