Stocks Are Mixed for Day, Up for Month

Wall Street ended January on a mixed note Friday after the release of disappointing gross domestic product figures.

Key indexes were off modestly, though rising stocks slightly outnumbered losers on the New York Stock Exchange and Nasdaq.

The 4% annual growth rate in the fourth-quarter GDP report showed an expanding economy, but the number was lower than the 4.8% analysts expected.

The Dow Jones industrial average slipped 22.22 points, or 0.2%, to close at 10,488.07. It was the second straight week of losses for the Dow, which was down 80.22 points, or 0.8%, for the week.

Broader stock indicators also fell. The Standard & Poor’s 500 index eased 2.98 points, or 0.3%, to 1,131.13, and for the week was down nearly 1%, snapping a nine-week stretch of gains.

The Nasdaq composite was down 2.08 points, or 0.1%, to 2,066.15 on Friday and shed 2.7% for the week, its second straight decline.

Bond traders, however, were somewhat cheered by the news that the economy was growing more slowly than expected. The price of the benchmark 10-year Treasury note rose slightly, with the yield falling to 4.13% from 4.17% on Thursday.

“The bond market took the GDP number positively,” said Gary Thayer, economist at A.G. Edwards & Sons in St. Louis. “It had expected stronger growth, and some people may now be reminded that the [Federal Reserve] will not be quick to raise rates.”

For the month, stocks eked out modest gains, extending the market’s 2003 run.

January started with a surge in buying throughout the market amid high expectations for the latest round of corporate earnings reports. But investor enthusiasm slumped Wednesday, when the Fed appeared to signal that it might tighten credit sooner than later.

The resulting sell-off put a big dent in the year-to-date gains. For the month, the Dow rose 0.3%, Nasdaq rose 3.1% and the S&P; climbed 1.7%.

January’s overall gain is good news to those who believe in the “January barometer.” The barometer holds that a January rise in the S&P; will make for a bullish year, and a lower S&P; for January means a down year.

Since 1950, the barometer has been wrong only five times, with three of those “errors” blamed on geopolitical events such as the Vietnam War and the Sept. 11 terrorist attacks.

“Whatever your read is on January, there’s still good news to be had on the economy, especially with the solid corporate earnings we’re seeing,” said Brian Bruce, director of global investments for PanAgora Asset Management Inc.

Still, “I think it will take a very solid economic report or a series of positive reports to assure people that things aren’t as bad as the selling seems to reflect,” he said.

In other trading Friday, the dollar fell slightly against most major currencies. The euro climbed to $1.247 from $1.241 on Thursday. Gold rose $3.70 to $402.20 an ounce in New York after tumbling $16.10 on Thursday, when the dollar was rallying.

U.S. crude oil prices were little changed, rising 24 cents to $33.05 a barrel in New York.

Among Friday’s highlights:

* Tekelec advanced $2.33, or 13%, to $20.35. The maker of diagnostic and support systems for telecom networks had fourth-quarter income, excluding acquisition costs, of 13 cents a share, exceeding analyst expectations. Nortel Networks, which also makes telecom hardware, rose $1.24 to $7.82 on a strong earnings report.

* Adobe Systems added $2.17 to $38.30. The world’s biggest maker of graphic-design software said earnings in the current quarter would be 36 cents to 42 cents a share, up from its December forecast of 33 cents to 36 cents.

* Winn-Dixie Stores fell $2.53 to $6.56, a two-decade low. The Southern supermarket chain had a surprise second-quarter loss and suspended its dividend.

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Market Roundup, C4-5