Dow Gains but Nasdaq Slips
Tuesday, July 11th 2000, 12:00 am
By: News On 6
NEW YORK (AP) â€” Blue chip stocks moved higher Tuesday following an upbeat speech on productivity and the New Economy from Federal Reserve Chairman Alan Greenspan.
The Dow Jones industrial average was up 59.05 to 10,705.63 in afternoon trading.
The Nasdaq composite index fell 28.72 to 3,951.57 as tech stocks pulled back from a rally earlier in the day. The Standard & Poor's 500 index edged up 0.17 points to 1,475.79.
In a speech to the National Governors' Association, Greenspan repeated his view that the explosion in the use of computers and other high-tech devices has boosted America's productivity, the amount of output for each hour of work. Increased productivity has been a primary contributor to the nation's long economic expansion.
Greenspan didn't give any indication about whether the Fed would raise interest rates at its August meeting. Investors have been hoping the the Fed may be finished raising rates for now following its six increases over the past year.
Yahoo shares slumped, losing $7.063 to $102.944, although the Internet bellwether was expected to announce strong earnings later in the day. Other Internet companies followed Yahoo lower, including America Online, down $1.875 at $53.875; and Amazon, down $2.125 at $32.944.
Overall, trading was quiet as the corporate earnings season got under way, but so far the announcements have been encouraging.
Aluminum maker Alcoa reported stronger-than-expected earnings Monday, and International Paper followed suit with its own strong earnings report Tuesday. Shares of Alcoa were up $1.938 at $31.938, and IP shares were up $2.438 at $34.688.
Motorcycle maker Harley-Davidson also reports its second-quarter earnings Tuesday.
Advancing issues edged ahead of declining issues on the New York Stock Exchange, where volume came to 785.54 million shares.
The Russell 2000 index fell 1.30 to 529.53.