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Stocks mostly lower
despite upbeat earnings
By Hope Yen NEW YORK >> Wall Street dipped lower today as investors played it safe and cashed in some gains from last week's rally despite encouraging earnings from 3M and Merck.
Associated PressAnalysts said many traders were waiting and watching in advance of a rush of earnings news due out this week. Volume also was light following the long weekend; U.S. markets were closed Friday for the Easter holidays, and many traders took today off as well.
"We had a nice rally last week, so now we're seeing a little bit of profit-taking," said Todd Leone, managing director of equity trading at SG Cowen Securities. "It's more of a market not going in a straight line up anymore. Investors are trying to figure out which way to go."
Advancing issues outnumbered decliners 5 to 4 on the New York Stock Exchange.
The Dow Jones industrial average closed down 8.75, or 0.1 percent, at 8,328.90, having gained 1.6 percent last week. Earlier in the day, the blue chips rose as much as 60 points.
The broader market was mixed. The Nasdaq composite index dropped 1.13, or 0.1 percent, to 1,424.37, following a weekly advance of 4.9 percent. The Standard & Poor's 500 index lost 1.57, or 0.2 percent, to 892.01, after climbing 2.9 percent. But the Russell 2000 index rose 1.60, or 0.4 percent, to 385.30. It gained 3.3 percent last week.
The price of the Treasury's 10-year note was down 3/16 point, while its yield rose to 3.98 percent from 3.96 percent late Thursday. The price of two-year Treasury notes was unchanged, but their yield fell to 1.67 percent from 1.68 percent late Thursday.
Charles White, vice chairman and portfolio strategist at Avatar Associates, said some investors were avoiding making major purchases until key reports Friday on the nation's gross domestic product and consumer confidence.
"Investors are looking for some indication that sustainable economic growth is coming," he said. "Earnings are OK, but most of the guidance (on future quarters) offers no visibility. ... And there's nothing really meaningful coming out on the economy until the end of the week."
Meanwhile, a report today forecasting a drop in economic activity pressured the market. The New York-based Conference Board said its Index of Leading Economic Indicators fell by 0.2 percent last month to 110.6. The result was in line with analysts' expectations.
Dow component 3M fell 15 cents to $129.83 after the diversified manufacturer reported first-quarter earnings that beat Wall Street's estimates; it also reaffirmed its outlook for the year.
Southwest Airlines fell 36 cents to $15.16 despite reporting first-quarter earnings that met Wall Street expectations.
Gainers included Dow component Merck, which rose $1.07 to $56.96, after the pharmaceutical company posted quarterly profits that were in line with analysts' expectations.
Overseas, Japan's Nikkei stock average finished 1.2 percent higher. The European markets remained closed today for the Easter holidays.
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