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NEW YORK -- New economic reports calmed inflation fears today, sending blue chip stocks higher. But technology stocks fell in a round of profit-taking after a rally yesterday. Dow gains 85
Associated Press
The Dow Jones industrial average rose 84.97 to close at 10,606.95. The Nasdaq composite index fell 81.47, or 2.2 percent, to 3,685.52, giving back most of its 103.99-point gain yesterday. The Standard & Poor's 500 index was up 7.27 to 1,438.10. Advancers beat decliners by a 7-to-5 margin, with 1,675 up, 1,179 down and 474 unchanged on the New York Stock Exchange, where volume came to 922.33 million shares, down from yesterday's 930.22 million. The NYSE composite index rose 7.33 to 647.96; the American Stock Exchange composite index gained 5.48 to 911.92; but the Russell 2000 index fell 2.87 to 497.77. The 30-year Treasury bond rose 26/32, or $8.12 per $1,000 face amount; its yield fell 5 basis points to 5.73 percent, the lowest level in 3 months.
Investors closely examined three reports issued today to get a better idea of economic growth, inflation and whether the Federal Reserve will raise interest rates when it meets at the end of August. In the first report, the National Association of Purchasing Management said activity in the nation's industrial sector was unchanged in July. Analysts had expected a small increase. Meanwhile, the Commerce Department reported that construction spending fell 1.7 percent in June. Analysts had also forecast a small increase in that figure. A third report found stronger-than-expected consumer spending, and that the gain outstripped American workers' income gains.