NEW YORK >> Stock prices managed to make some solid gains today despite another choppy session in which investors were torn between buying cheaper stocks and shying away from the uncertainty of the high-tech sector. Stocks rally despite
By Amy Baldwin
tech downgrades
Associated Press"We have been swinging from great emotions on both sides in the last two weeks," said Steven Goldman, market strategist for Weeden & Co. of the market's recent triple-digit rallies and tumbles. "Emotions are running high."
Analysts' downgrades of Intel and Texas Instruments reminded investors that many companies continue to struggle with slumping demand and the weak economy. However, investors drew some encouragement from a positive earnings announcement from Amazon .com.
The market's major indicators alternated between gains and losses throughout today's session, continuing the volatility that marked last week's trading. The Dow Jones industrial average ended the day up 54.06 at 9,845.15 but lost much of an earlier 141-point advance. On Friday, the Dow fell 127 points, just a day after the blue chips had gained 402. The Nasdaq composite index rose 25.35 to 1,745.71 while the Standard & Poor's 500 rose 9.16 to 1,137.59.
Advancers outnumbered decliners nearly 2 to 1 on the New York Stock Exchange, with 1,951 up, 1,113 down and 215 unchanged. Volume was a relatively light 1.2 billion, matching the 1.21 billion on Friday.
The NYSE composite index rose 4.66 to 587.69, the American Stock Exchange composite index gained 11.46 to 871.02 and the Russell 2000 index, which measures the performance of smaller companies stocks, rose 7.01 to 441.67. The Treasury's 10-year note fell 932 to 100 1832; its yield rose 4 basis points to 4.92 percent. the 30-year bond fell 1532 to 98 732; its yield rose 3 basis points to 5.50 percent.
As it wobbled today, the market focused on the tech sector after Intel was downgraded by Salomon Smith Barney and Texas Instruments' rating was reduced by Lehman Brothers. Intel fell 43 cents to $23.20, while Texas Instruments dropped 75 cents to $27.51.
However, the market also got a lift from Amazon, which climbed nearly 34 percent, or $2.81, to $11.18 after announcing it expects to report a smaller loss and higher sales for the first quarter. Amazon said it expects to lose 22 cents a share, an improvement over the first three months of last year when it lost 35 cents a share. Other Internet shares rose, including Yahoo!, up 83 cents at $15.64.
"We're working through a process in which stock prices turn in better performances. It's a process, not a one-day event," said Kevin Caron, associate strategist at Gruntal & Co.
Analysts have been saying the market will continue to fluctuate as investors grapple with bleak first-quarter earnings announcements and the likelihood that the slumping economy isn't expected to bounce back until sometime next year.
In Japan, the Nikkei stock skidded 4.1 percent.