NEW YORK -- Wall Street reversed direction today as investors resumed buying tech stocks and blue chips gave up some of their recent gaines.
Dow off 8.43
The Dow Jones industrial average fell 8.43 to close at 10,957.42. Despite a strong boost from its tech components, the Dow couldn't keep in positive territory late in today's session. The Nasdaq composite index rose 21.28 to 2,664.49, but the Standard & Poor's 500 index, which has a smaller percentage of tech stocks than the Nasdaq, fell 2.05 to 1,352.26. Advancers led decliners 8 to 7 on the New York Stock Exchange, with 1,662 up, 1,401 down and 210 unchanged. Volume was 1.05 billion shares, compared with 1.01 billion yesterday. The Russell 2000 index advanced 5.02 to 505.76. The NYSE composite index slipped 1.34 to 662.26; and the American Stock Exchange composite index rose 7.16 to 936.60.
The 10-year Treasury note's price fell 5/32 point, while its yield rose to 5.19 percent from 5.17 percent late yesterday. The 30-year bonds fell 7/32 point and yielded 5.50, up from 5.49 yesterday.
Investors seemed to tune out corporate earnings to shop for bargain-priced tech stocks. Tech stocks rose as investors put aside worries that the slowing economy stands to pinch profits the most.
Today's trading reflected a recent trend in which investors have been alternating throughout the day between safer blue chips and riskier tech stocks. Analysts expect investors will continue to waffle between techs and blue chips, making no big commitments either way until the economy improves or the Federal Reserve lower rates for a third time this year. "This is a little pause in a window in which the market is probably going to be in limbo and not make much progress," said Ricky Harrington, technical analyst for Wachovia Securities.