Star-Bulletin news services
Stocks finish mixed
despite strong data
NEW YORK >> Wall Street had a muted reaction to upbeat reports on consumer confidence and the gross domestic product yesterday, closing narrowly mixed as investors stayed cautious after Monday's big rally.
Analysts said many investors had anticipated the good news in the previous session, when the Dow Jones industrial average rose 119 points.
"Bottom line, the economy's overall health is playing a greater role for the time being in determining the market's direction," said Joseph Keating, chief investment officer at AmSouth Asset Management. "All the economic data since August point to the fact the economy is strong."
The Dow closed up 16.15, or 0.2 percent, at 9,763.94. Broader market measures finished mixed. The Nasdaq composite index fell 4.10, or 0.2 percent, to 1,943.04 after Monday's advance of 53 points, or nearly 3 percent, the biggest gain for that measure in almost five months.
The Standard & Poor's 500-stock index gained 1.81, or 0.2 percent, to 1,053.89, following an advance of 16.80.
Advancing issues outnumbered decliners 9 to 4 on the New York Stock Exchange. Consolidated volume was light at 1.72 billion shares, but slightly higher than the 1.67 billion traded Monday. The Russell 2000 index, a barometer of smaller company stocks, rose 3.67, or 0.7 percent, to 543.18.
The NYSE composite index gained 17.10, or 0.3 percent, to 6,033.19. The American Stock Exchange composite index rose 8.81, or 0.8 percent, to 1,080.96.
The Treasury's two-year note gained 332 to 99 1932, with its yield rising 6 basis points to 1.83 percent. The 10-year note advanced 1 2/32 to 100 1732, with its yield falling 5 basis points to 4.18 percent.
The Commerce Department said the economy grew at an 8.2 percent annual rate in the third quarter, the fastest pace in nearly two decades. Yesterday's revised gross domestic product was a percentage point higher than the 7.2 percent growth rate estimated a month ago.
Separately, the New York-based Conference Board reported that slow but steady improvements in the job market helped push consumer confidence in November to its highest level in more than a year.
Industrial issues, whose fortunes are closely tied to the twists and turns of the economy, were among the Dow's stronger components: Heavy equipment maker Caterpillar Inc. advanced $1.70 to $75.04, and chemical maker DuPont Co. rose 59 cents at $40.55.
Drug stocks sagged amid news that the Senate gave final congressional approval to sweeping changes for Medicare. The $395 billion measure includes a new prescription drug benefit for 40 million older and disabled Americans. Merck & Co. fell 67 cents to $41.42, and Johnson & Johnson lost 79 cents at $50.69.
Citigroup rose 14 cents to $46.88 after the bank announced a deal to buy a consumer finance business from Washington Mutual Inc. for $1.25 billion.
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