NEW YORK (AP) - Wall Street ended mixed Monday after weakness in the
technology sector punctured some of the market's enthusiasm over a report that
suggested the economy could still be growing.
But comments from memory chip maker SanDisk Corp. about soft sales helped
pull stocks off their highs and sent tech shares lower. The Dow Jones industrial
average, which had been up more than 100 points, finished well off its highs.
The Conference Board's leading economic indicators report showed a 0.1
percent rise for April, following a similar uptick in March. The index, aimed at
predicting economic activity in the next three to six months, bolstered
investors' belief that the overall U.S. economy, while weak, is positioned for
recovery.
After five months of declines in the leading indicators, some investors were
concerned that March's increase was an anomaly -- so April's advance was met
with relief, said Hugh Johnson, chief investment officer of Johnson Illington
Advisors.
But technology shares tugged at the market after SanDisk issued cautious
comments at a JPMorgan technology conference Monday, said Neil Massa, senior
trader at MFC Global Investment Management in Boston. SanDisk fell $2.42, or 7.5
percent, to $30.02. SanDisk's remarks came on a day of light trading and dented
but didn't sink an upbeat mood on Wall Street.
"Even though you're up only 0.1 percent, it's very good news that the
declining trend may have been reversed," Johnson said, referring to the leading
indicators report. "That is important for this reason: It's consistent with the
message of the markets." The broader market, as measured by the Standard &
Poor's 500 index, rose 2.67 percent last week on cautious optimism about the
economy.
The Dow rose 41.36, or 0.32 percent, to 13,028.16. The blue chips had been
up nearly 150 points at their highs of the session.
Broader stock indicators finished mixed. The S&P 500 advanced 1.28, or 0.09
percent, to 1,426.63, and the technology-heavy Nasdaq composite index fell
12.76, or 0.50 percent, to 2,516.09.
Government bonds rose as the rally in stocks cooled. The yield on the
benchmark 10-year Treasury note, which moves opposite its yield, fell to 3.83
percent from 3.85 percent late Friday.
The dollar rose against most other major currencies, while gold prices also
climbed.
One pressure point for the economy -- rising energy prices -- appeared
relatively in check Monday. While many investors remain mindful of the rising
price of oil and its effect on consumer spending, Wall Street seemed somewhat
unfazed as oil advanced but didn't top its record trading high set Friday.
Light, sweet crude rose 76 cents to settle at a record $127.05 per barrel on the
New York Mercantile Exchange. The price of a gallon of regular gasoline topped
$4 for the first time in two U.S. metropolitan areas. Still, energy didn't seem
as large of a concern as in some recent sessions.
Financial shares also pulled back after the market came off its highs.
Merrill Lynch & Co. fell $1.14, or 2.3 percent, to $47.71, while Lehman Brothers
Holdings Inc. fell 85 cents to $42.79.
In other corporate news, Microsoft Corp. has renewed talks with Yahoo Inc.
about a possible deal to bolster the companies' position in the online search
and advertising markets. The companies appear to be exploring possible
arrangements outside of a direct tie-up. Microsoft fell 53 cents to $29.46, and
Yahoo rose 2 cents to $27.68.
General Motors Corp. rose after one of its biggest suppliers reached a
tentative labor deal with the United Auto Workers. The agreement with American
Axle & Manufacturing Holdings Inc. may end a nearly three-month strike by 3,650
U.S. hourly workers. GM advanced 19 cents to $20.87.
Lowe's Cos. posted a first-quarter profit decline and issued an outlook for
the year that came in below analyst estimates. The second-largest home
improvement chain fell 64 cents, or 2.6 percent, to $24.25.
The Russell 2000 index of smaller companies fell 2.72, or 0.37 percent, to
738.45.
Declining issues narrowly outpaced advancers on the New York Stock Exchange,
where consolidated volume came to 3.55 billion shares, compared with 3.74
billion traded Friday.
In overseas trading, Tokyo's Nikkei closed up 0.35 percent. In Europe,
London's FTSE closed up 1.15 percent, Frankfurt's DAX rose 0.97 percent and
Paris' CAC 40 was up 1.26 percent.
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