Star-Bulletin news services
Dow crosses 10,000,
then fades at finish
NEW YORK >> The Dow Jones industrials broke through the 10,000 barrier for all of one minute yesterday, reaching a significant milestone in Wall Street's remarkable recovery from the bear market before retreating on profit-taking.
Stocks moved higher as investors picked up shares on anticipation the Federal Reserve will keep interest rates low for some time. But by the time the Fed issued its decision in the afternoon to leave rates unchanged, investors were looking to lock in some gains, analysts said.
The index of 30 blue-chip stocks moved past its milestone shortly after trading began. It was the first time since May 31, 2002, that the Dow had been above 10,000 and marked a solid comeback from the five-year low of 7,286.27 on Oct. 9, 2002.
A cheer went up on the floor of the New York Stock Exchange to greet the Dow's achievement yesterday, an expression of traders' relief that Wall Street has maintained its upward path. Last week, the Nasdaq composite index crossed 2,000 for the first time in nearly two years.
"This rally is coincident with the fact the market had a stellar performance this year, because it correctly predicted the recovery in the economy," said Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co.
The Dow pushed up 37.85 to hit 10,003.12 before pulling back and closing at 9,923.42, down 41.85, or 0.4 percent. In the previous session, the blue- chip average climbed 102.59.
The Nasdaq fell 40.53, or 2.1 percent, at 1,908.32. The Standard & Poor's 500 index declined 9.12, or 0.9 percent, to 1,060.18.
Declining issues outnumbered advancers about 8 to 5 on the NYSE. Consolidated volume was moderate at 1.86 billion shares, compared with 1.52 billion traded Monday.
The Russell 2000 index fell 8.50, or 1.6 percent, to 534.54. The NYSE composite index fell 29.00, or 0.5 percent, to 6,137.17. The American Stock Exchange composite index lost 5.69, or 0.5 percent, to 1,124.57.
The Treasury's two-year note slipped 332 to 99 2732, with its yield rising 6 basis points to 1.96 percent. The 10-year note fell2 1/32 to 99 632, with its yield gaining 8 basis points to 4.35 percent.
As expected, the Fed voted to keep short-term interest rates at a 45-year low. In its statement, the Fed said it believes rates could be maintained "for a considerable period," allaying investor concerns about a rate hike in the near future.
Kroger Co. declined 58 cents to $17.31 after the supermarket giant reported third-quarter earnings that fell below expectations.
Texas Instruments fell 75 cents to $27.49 after the tech company raised its fourth-quarter outlook, citing strong growth.
But General Motors Corp. gained $1.27 to $48.41 after Goldman Sachs raised the automaker's stock rating to "outperform" from "in-line," citing improvements in the company's pension plan.
STOCK QUOTES/CHARTS/DATA
