Tech stocks gain,
but Dow falters
NEW YORK >> Technology stocks boosted by Texas Instruments Inc.'s solid earnings report led Wall Street moderately higher yesterday, but the Dow Jones industrials lagged behind, held back by disappointing news from AT&T Corp.
Analysts said earnings reports didn't give the market a more significant advance because, while third-quarter profits have generally been strong, investors have already pushed stocks higher in anticipation of robust results. Earnings are reflected in many companies' share prices, said Jack Caffrey, equities strategist at J.P. Morgan Private Bank.
The Dow Jones industrial average fell 30.30, or 0.3 percent, to 9,747.64. The Nasdaq composite index was up 15.76, or 0.8 percent, at 1,940.90. The Standard & Poor's 500 index was up 1.35, or 0.1 percent, at 1,046.03.
Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was moderate, with 1.44 billion shares traded, compared to 1.18 billion Monday.
The Russell 2000 index was up 5.17, or 1 percent, at 525.53. The NYSE composite index rose 7.31, or 0.1 percent, to 5,937.99. The American Stock Exchange composite index fell 1.00, or 0.1 percent, to 1,019.28.
The Treasury's two-year note was unchanged at 99 1832, with its yield remaining at 1.85 percent. The 10-year note gained 732 to 99 532, with its yield falling 3 basis points to 4.35 percent.
Texas Instruments' third-quarter profits more than doubled on rising sales in the semiconductor market, beating analysts' forecast by 2 cents a share. The chip maker rose $1.61, or 6.3 percent, to close at $27.28.
AT&T dropped $1.07, or 5.1 percent, to $20 after the company released disappointing third-quarter results. While profits nearly doubled compared to a weak showing a year ago, revenues fell 8.1 percent as Bell rivals and cell phones gained a growing share of the long distance market. Officials also revealed that AT&T employees overstated profits by $125 million in 2001 and 2002 to cover up an accounting mistake.
Eastman Kodak Co. was up 52 cents, or 2.3 percent, at $23.64, after a group of shareholders said they would ask the company to reconsider a plan to sharply reduce its dividend as it makes aggressive strides into the digital camera market, stepping back from its traditional film business.
After the close, Amazon.com Inc. posted third-quarter profits that beat analyst estimates by a penny. The online retailer, which fell 24 cents to $59.35 in the regular session, fell $1.05 in after-hours trading to $58.30.
Amgen Inc. also announced earnings after the close. The biotech company reversed a third-quarter loss largely on strong sales of its anemia-fighting drugs, beating analyst expectations by 2 cents a share. Amgen, which rose $1.76 in regular trading to $63.65, dipped 6 cents in extended dealings.