Dow Gains 57 As Nasdaq Slips 19
Monday, July 10th 2000, 12:00 am
By: News On 6
NEW YORK (AP) â€” Stocks were mixed in late afternoon trading Monday as investors traded cautiously ahead of a rush of corporate earnings reports expected later this week.
In late afternoon on Wall Street, the Dow Jones industrial average was up 57.63 at 10,693.61, while the Nasdaq composite index was down 19.10 at 4,004.10.
The Standard & Poor's 500 index was up 3.06 at 1,481.96.
Investors were still digesting a positive jobs report from the government on Friday. The report gave the latest evidence that the U.S. economy is slowing in response to the Federal Reserve's six interest rate increases since last June.
A slowing economy signals steadier interest rates but also the potential for weaker corporate profits.
Most economists now expect the Fed to leave rates unchanged for the next few months. While that's good news for investors who were unnerved earlier this year by the Fed's actions, there is still a great deal of concern in the market that the cumulative effect of the rate hikes will be a drop in corporate profits.
``Everybody is kind of waiting and watching until corporate earnings announcements hit full stride the end of this week,'' said Alan Ackerman, senior vice president at Fahnestock & Co.
The first Dow component to report profits, Alcoa, reported higher-than-expected earnings. Shares of the aluminum producer rose $2.125 to $29.75.
Yahoo!, expected to release its earnings report on Tuesday, fell $6.50 to $110.
Lehman Brothers upgraded its rating of computer chip maker Applied MicroDevices, which rose $3.313 to $85.313.
Advancing issues outnumbered decliners by a five to three margin on the New York Stock Exchange, where volume came to 3531.75 million shares, down from Monday's pace.
The Russell 2000 index rose 3.72 to 531.94.