Stocks End the Week on a Steady Note
U.S. stocks closed little changed Friday, ending a week of some disappointing earnings announcements and the introduction of 33 newly public companies.
Boosted most by General Electric and Walt Disney, the Dow Jones industrial average rose 4.07 points to 5872.92 on Friday, ending the week 15.54 points, or 0.26%, lower. The blue-chip index made a record high close of 5895.74 on Monday. GE rose 1 1/8 to 91 1/2 on reports of an upgrade by Goldman, Sachs & Co. Disney rose 1 to 63.
The Dow stayed in a 94-point range for the last five days, declining to follow through on rapid price increases earlier this month that had pushed stocks to records. Among broader indexes in the past five trading days, the Standard & Poor’s 500 index was off 0.83 point, or 0.12%, from its record of last Friday.
The Nasdaq composite index rose 2.07 points to 1,230.05, drawing nearer to its June 5 record high of 1,249.15. The index was up 10.36 points on the week.
Since the stock market tumble in July and recovery in August, “the public is beginning to get back into the market, and the pros are providing as much stock as they’d like,” said Art Stockton, chief investment officer at $1-billion Stockton Trust in Scottsdale, Ariz.
Investor enthusiasm explains the $35-billion record amount of money raised in initial public offerings so far this year. New stocks compete with existing issues for investors’ dollars, so a great number of IPOs can sometimes keep the stock market from advancing.
The yield on the 30-year Treasury bond rose to 6.91%, up from 6.88% on Thursday.
Next week, Wall Street faces a slew of economic reports, including ones from the National Assn. of Purchasing Management, for September; August new-home sales and leading indicators; and September employment data.
“Stocks are straggling on fears of a slowdown in the fourth quarter. But as in the past, there’s the usual difficulty for the market in reaching the next plateau, in this case 6,000” for the Dow, said Peggy Farley of Amas Securities.
Among market highlights:
* PepsiCo, down 2 1/8 at 28 1/8, was the New York Stock Exchange’s most active. The activity following Thursday’s announcement that the company is overhauling its international soft drink operations and considering selling some U.S. restaurants. Analysts said the price drop reflects concern about how long it will take for the plan to produce results.
* Technology issues put in a mixed performance amid some profit taking on another strong week. Microsoft rose 2 3/8 to 134 3/8, but investors became worried when the company posted a warning after the close of trading that its profit margins may be smaller next year.
* Ogden, with aviation, entertainment and power generation businesses, dropped 1 1/2 to 20 on a warning of lower third-quarter earnings.
* Integrated Device Technology declined 1 5/8 to 9 1/4. The semiconductor maker said it expects a loss in its fiscal second quarter.
* Mackie Designs dropped 1 1/2 to 8. The maker of audio recording equipment expects third-quarter earnings will be “materially” less than forecasts because of a delay in introducing a new product.
Market Roundup, D4
