Stocks Gain Slightly; Bond Yields Steady
Major stock indexes managed modest gains Tuesday after two days of losses, but on Nasdaq falling stocks still outnumbered winners.
In the bond market, yields were little changed, not showing much reaction to Federal Reserve Chairman Alan Greenspan’s latest comments on the economy, which analysts said sounded a lot like last week’s comments.
In commodities trading, oil prices dipped below $28 a barrel.
On Wall Street, stocks pulled up from morning losses to leave most major indexes up for the day.
The Nasdaq composite gained 48 points, or 1.2%, to 4,029.57. On Monday the index fell 2.7% to its lowest since July 11.
The Dow industrials eked out a 14.85-point gain to 10,699.97.
Winners had a small edge over losers on the New York Stock Exchange, but losers topped winners by 21 to 18 on Nasdaq.
Some major tech stocks rebounded after heavy selling in recent days tied to disappointing second-quarter earnings reports and worries about personal computer sales.
Apple Computer, which fell from nearly $59 two weeks ago to $48.69 by Monday, gained $1.38 to $50.06 on Tuesday.
Beaten-down AT&T; added 69 cents to $34 after reporting earnings that topped expectations.
Investors provided a rousing reception for Internet-commerce software firm Blue Martini (ticker symbol: BLUE), which soared $34.78 to $54.78 on its first day of trading.
But one of the hotter sectors recently--biotech stocks--took a pounding after Chiron said it stopped developing an experimental arthritis medicine after two studies failed to show benefits from the treatment. Chiron plunged $7.23 to $42.44. The Amex biotech stock index slumped 5.5%.
In the bond market, the 10-year Treasury note yield was unchanged at 6.03%. Fed Chairman Greenspan, testifying before a House committee, indicated there were a number of signs the economy was slowing in the spring, but said it was too early to say whether this was a permanent slowdown that would keep inflation in check, or merely a pause.
The Fed next meets Aug. 22.
In commodities markets oil continued its slide, with near-term futures in New York falling 7 cents to $27.95 a barrel on expectations for rising crude supplies.
Gasoline futures rose for the first time in five sessions on reports that a gasoline-making unit at a Tosco Corp. refinery had shut down unexpectedly, signaling reduced supplies to Northeast markets.
Among Tuesday’s highlights:
* Tech stocks showing strength included Applied Materials, up $4 to $84.50; Sun Microsystems, up $8.56 to a record $109; and Intel, up $2.88 to $140.88.
* In the Internet sector, Yahoo rose $5.44 to $138, Lycos added $2.81 to $59.69 and Redback Networks rose $10.56 to $141.06.
But Akamai Technologies, which posted a wider second-quarter loss Monday, fell $22.88 to $85 after the seller of a service that speeds Internet data said it will increase spending.
* In the drug sector, Pfizer, the world’s No. 1 drug maker, dropped $3.75 to $44 after its report Monday that second-quarter sales fell short of expectations.
But Pharmacia jumped $2.63 to $55.63 after it said profit from continuing operations in the second quarter rose 20%, matching forecasts.
* Biotech stocks falling with Chiron included Human Genome Sciences, down $15.19 to $144.88; Celera Genomics, down $5.19 to $104.81; and Biogen, down $2.81 to $57.69. The genome stocks also were hurt by Affymetrix, which slumped $31.69 to $162.81. The maker of synthetic DNA used by researchers reported a greater-than-expected loss in the second quarter as selling and administrative expenses almost doubled.
* Brokerage stocks continued to rally on takeover speculation. Merrill Lynch rose $3.31 to $131.81, Bear Stearns gained $5.63 to $55.38 and Lehman Bros. rose $3.44 to $121.09.
Market Roundup: C8-C9
