Stocks Close Broadly Lower; Bond Yields Up
U.S. stocks gave back early gains to close broadly lower in a choppy session Wednesday. The Dow industrials erased a 65-point gain, while Nasdaq finally succumbed to profit-taking after a string of record-setting rallies.
The Nasdaq composite index dipped 0.84 point to 3586.08. The Dow Jones industrial average lost 38.53 points, or 0.4%, to 11,068.12 and the Standard & Poor’s 500 index eased 5.29 points, or 0.3%, to 1,403.88.
Blue chips struggled to find direction for most of the day as the bond market progressively weakened. The benchmark 30-year Treasury yield rose to 6.23%, from 6.20% the day before.
The S&P; 500 fell as investors sold its new member Yahoo after a five-day, 64% surge in the shares triggered by the announcement of its addition to the index. Yahoo tumbled $28.38 to $319.63, one big reason Nasdaq snapped a four-day record streak.
“We have had an extraordinary year,” said Michelle Clayman, chief investment officer of New Amsterdam Partners. “I don’t think it’s surprising we are taking a pause.”
Though the composite slipped from record terrain, Nasdaq set a volume record as 1.67 billion shares were traded, based on preliminary figures.
The Nasdaq index, two-thirds computer and telecommunications shares, is up 64% in 1999, on course for the biggest annual gain in its 28-year history.
Among the highlights:
* Ericsson’s American depositary receipts rose $5.44 to $64.13 after the Swedish cellular phone maker formed an alliance with Microsoft to develop products that let users access the Internet on the go. Microsoft fell $1.25 to $91.75.
In another wireless venture, Amazon.com and Sprint PCS said they agreed to allow online shopping through Sprint wireless telephones. Amazon.com rose $2.50 to $88.56. Sprint PCS rose $5.19 to $99.50.
* Internet Capital Group leaped $43.31 to $213.31 after it said it will receive $50 million from AT&T; and an additional $40 million from a Kuwaiti investment company that it will use to repay debt and make more investments in business-to-business Internet companies.
* Linux fever sent several stocks higher. Corel jumped $5.63 to $28.31 and Perle Systems vaulted $8.88 to $13.69, while new issue Andover.net (ticker: ANDN) blitzed $45.38 to $63.38.
* Other debuts included Agency.com (ACOM), up $50 to $76, NetRatings (NTRT), up $11 to $28, and Preview Systems (PRVW), up $62.75 to $83.75.
* Newspaper shares were the biggest gainers in the S&P; 500. New York Times rose $4.13 to $45.88 after it said it expects advertising revenue to grow 5% to 7% next year.
Tribune gained $4.06 to $52.69 after saying it expects earnings per share to grow 10% to 15% next year. Gannett climbed $3.13 to $77.59, Knight Ridder added $1.44 to $56.38, Washington Post rose $10.13 to $566.88 and Times Mirror Co., which publishes the Los Angeles Times, gained $2.63 to $66.63.
Market Roundup, C11
