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Dow rises 66
Associated PressNEW YORK - Stocks moved in divergent directions today, with blue-chip issues rising after a closely watched inflation gauge rose less than expected. Technology stocks slumped, led by industry leaders like Qualcomm and Intel.
The Dow Jones industrial average rose 66.11 to close at 10,687.95. The Standard & Poor's 500 index edged up 1.10 to 1,470.54, but the Nasdaq composite index fell 53.65, or 1.4 percent, at 3,797.41.
Trading was choppy as investors reallocated money from technology stocks to industrial names that have been neglected in recent weeks. Analysts said the choppiness betrayed an absence of conviction which is preventing market averages from making significant gains. "The market has been plagued by a lack of leadership," said Ricky Harrington, analyst at Wachovia Securities in Charlotte, N.C. "That is becoming a problem for the market."
Advancers beat decliners by a roughly 4-to-3 margin on the New York Stock Exchange, with 1,674 up, 1,255 down and 481 unchanged. NYSE volume totaled 929 million shares vs. 914.12 million yesterday.
The NYSE composite index rose 3.10 to 656.73; the American Stock Exchange composite index slipped 3.33 to 943.22; and the Russell 2000 index sank 4.08 points to 509.67.
The price on the Treasury's 10-year note climbed a point, or $5 per $1,000 face amount; its yield dropped 7 basis points to 6.07 percent. The two-year note rose 3/32 point as its yield fell 6 basis points to 6.42 percent. The 30-year bond rose 18/32 point, while its yield fell 4 basis points to 5.91 percent.
Most stocks rose after the Labor Department said the Consumer Price Index inched up 0.1 percent in May. Many analysts had expected an increase of 0.2 percent.
Seagram shot up $7.25 to $60.25 after confirming that it is in merger talks with French conglomerate Vivendi SA and its pay-television unit Canal Plus.