Closing Market Report

Star-Bulletin news services

Monday, June 4, 2001

Stocks rise but
investors stay cautious

By Lisa Singhania
Associated Press

NEW YORK >> Caution asserted itself on Wall Street today as investors, still nursing doubts about when the economy will improve, bought stocks but made few major commitments.

Blue chips managed a moderate rally on gains in a handful of energy and technology issues, but the overall market was less robust in an unusually quiet and choppy session.

The Dow Jones industrial average closed up 71.24 at 11,061.65. Broader indicators recorded more modest advances. The Standard & Poor's 500 index rose 6.44 to 1,267.11, and the Nasdaq composite index advanced 6.49 to 2,155.93.

It was the third straight gain for all three indexes, but analysts weren't impressed. The advances amounted to less than 1 percent on each indicator. Advancers led decliners nearly 2 to 1 on the NYSE, with 1,976 up, 1,097 down and 210 unchanged. Volume was the second lightest of the year at 835.38 million shares vs. 937 million on Friday.

The NYSE composite index gained 3.70 to 646.51, the American Stock Exchange composite index rose 1.59 to 946.82 and the Russell 2000 index was up 5.60 at 507.32. The Treasury's 10-year note rose 5/32 to 97 14/32; its yield fell 2 basis points to 5.34 percent. The 30-year bond rose 6/32 to 95 1/2; its yield fell 1 basis oint to 5.69 percent.

"Overall, what you're seeing here is a rally in a few high-priced Dow stocks, but not any kind of a broader, more powerful move on the larger market," said Richard Dickson, technical analyst at Hilliard Lyons. "I think investors are still confused about the earnings outlook and what's going on with technology. There are not a lot of compelling reasons to buy, but there are a lot of reasons to be cautious."

That reluctance spilled over to the technology sector, making for a mixed session. IBM rose 75 cents to $113.64, while Intel fell 24 cents to $28.50 on worries the chip maker will issue an earnings warning at a mid-quarter update scheduled Thursday.

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