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US stocks: Blue-chips up as downgrade hurts techPosted by Retirement on: 2005-09-30 07:21:08 in category:
Stocks & Securities [ Print | Permalink / 0 Comment(s) ] 28.09.05 9.40am NEW YORK - US blue-chip stocks rose on Tuesday after Federal Reserve Chairman Alan Greenspan offered remarks considered benign for stocks, while technology shares were hit by a Wall Street downgrade of semiconductor companies. J.P. Morgan cut its view of semiconductor companies and lowered ratings on chip makers, including Cypress Semiconductor Corp. and Fairchild Semiconductor International Inc. The Philadelphia Stock Exchange Index of semiconductor shares declined more than 1 per cent. Boeing Co. shares climbed, adding to gains on the Dow. The stock has advanced more than 5 per cent since the commercial jet maker reached a union pact over the weekend. Its stock rose nearly 3 per cent to US$66.55 on the New York Stock Exchange. The Dow Jones industrial average gained 12.58 points, or 0.12 per cent, to end at 10,456.21 and the Standard & Poor's 500 closed unchanged at 1,216. The Nasdaq Composite Index dipped 5.04 points, or 0.24 per cent, to close at 2,116.42. Greenspan told an economics conference that asset prices "invariably" fall after long periods of high risk-taking in markets, and a flexible economy is better able to withstand the inevitable blow. "His speech was really focused on real estate. But then again if his comments cause some money to come out of the housing market and some money to come out of the credit market, where does it go? It probably goes into the equity market," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. He added that "maybe it's a bit of relief rally that he didn't say anything that controversial or that new." San Francisco Federal Reserve Bank President Janet Yellen, in prepared remarks to members of Parliament in London, said the Fed must continue to uphold its promise of price stability by keeping inflation at bay. "These were reassuring statements by the Fed," said Marc Pado, US market strategist, Cantor Fitzgerald & Co. "I think what the market ultimately fears is inflation. What makes assets worth less in the long run is inflation. What the Fed is effectively saying is, 'We won't let prices get out of control."' Trading was active, with about 1.50 billion shares changing hands on the New York Stock Exchange, just above the 1.46 billion daily average for last year. About 1.65 billion shares were traded on Nasdaq, below the 1.81 billion daily average last year. The number of declining stocks outpaced those advancing by about 9 to 7 on the New York Stock Exchange. On Nasdaq, decliners outnumbered advancers by 8 to 7. US crude oil futures for November delivery ended down 75 cents at US$65.07 a barrel as many refineries remained out of action following Hurricanes Rita and Katrina, curbing demand for crude feedstock. The drop in oil prices breathed life into stocks that are sensitive to swings in fuel prices, including manufacturers like General Electric Co. GE shares rose more than 1 per cent, or 37 cents, to US$33.64 on the NYSE. Earlier, a weaker-than-expected reading on consumer confidence hurt stocks. The Conference Board said its index of consumer sentiment plummeted to its lowest level in nearly two years, hit by economic fallout from Hurricane Katrina and soaring petrol prices. In the chip sector, Cypress shares fell 3.6 per cent, or 52 cents, to US$14.03, and Fairchild Semiconductor dropped 6 per cent, or 92 cents, to US$14.43, both on the NYSE. Health insurer WellPoint Inc. said it agreed to buy WellChoice Inc. for nearly US$6.5 billion. WellPoint's shares slipped 0.1 per cent, or 8 cents, to US$75.01 on the NYSE, while WellChoice shares jumped almost 7 per cent, or US$4.91, to US$75.51, also on the NYSE. Homepage Other open community sites http://www.business-business.biz Please support our sponsors: To design your custom retirement plan. http://www.retirement-plan.us For planning IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management- Nationally ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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