Advertisement - Click to support our sponsors.
Nasdaq hits record;
Associated Press
Dow falls 138.06NEW YORK -- Blue-chip stocks fell steeply today amid worries that rising interest rates will ultimately cut into corporate earnings, while signs of strong growth from leading technology companies boosted the Nasdaq further into record territory.
The Dow Jones industrial average fell 138.06 to close at 11,351.30. The blue-chip index pitched wildly today, rising as much as 68 points in early trading and plunging as much as 214 at midday. The Nasdaq composite index rose 38.23 to 4,189.52, extending the record high reached just yesterday. The Standard & Poor's 500 index dropped 10.33 to 1,445.57. Decliners led advancers on the New York Stock Exchange with 1,816 down, 1,216 up and 485 unchanged. Volume came to 1.10 billion shares vs. 1.06 billion yesterday. The NYSE composite index fell 4.86 to 640.51, the American Stock Exchange composite index rose 9.04 to 899.61 and the Russell 2000 index of smaller companies gained 7.26 to 527.28.
The 30-year Treasury bond fell 11/32 to 92 3/32, with its yield rising to 6.74 percent.
IBM Corp., which sent a chill through the tech sector last fall when it said sales had slumped due to Y2K worries, easily beat forecasts after a solid earnings report yesterday. The stock rose $2.37 to $121.87. Apple Computer Inc. soared $6.94 to $113.50 after also reporting strong earnings. Alcoa Inc. dropped $4.75 to $73.37 as the company announced plans to restart primary aluminum production to meet growing global demand.