Dow Collects Modest Gain
08/20/07 - 05:06 PM EDT
Robert Holmes
Updated from 2:16 p.m. EDT
Stocks in New York ended Monday little changed after riding out another volatile session characterized by continuing uncertainty about credit. The Dow Jones Industrial Average swung in a nearly 200-point range before closing up 42.27 points, or 0.3%, at 13,121.35, led by gains in Alcoa (AA Quote - Cramer on AA - Stock Picks), Caterpillar (CAT Quote - Cramer on CAT - Stock Picks) and Honeywell (HON Quote - Cramer on HON - Stock Picks). As for the other major averages, the Nasdaq Composite bounced back from midday losses and added 3.56 points, or 0.1%, at 2508.59. The S&P 500 slipped about one-third of a point to 1445.55. Treasuries rose on the long and short ends. Around 4 p.m. EDT, the 10-year note was up 11/32 in price, lowering the yield to 4.64%. The 30-year bond was up 6/32 in price, yielding 4.98%. However, the story on the fixed-income side was in the three-month bill, where the yield plunged 81 basis points late in the session to yield 3.07% as traders looked for the surest bet amid the current market unrest. Earlier, demand for the short-term government instruments sent the yield down more than 100 basis points before the buying pressure lessened. Paul Nolte, director of investments with Hinsdale Associates, isn't convinced that investors haven't seen the worst for the stocks yet. "There will come a point that the lows of last week are revisited," he said. "It will be the test to determine whether the markets fail or succeed in continuing their four-year run to higher ground."
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