Tech stocks were overcoming earnings woes to chalk up modest gains in afternoon trading, while the blue-chips continued to show strength after moving lower in the early going.
Dow Jones Industrial Average
climbed 35.5 to 11,231, with its components gaining upward momentum.
, which has remained 1.9% higher, stepped back after merger speculation put the investment bank to a new all-time high level of $176.
was still losing almost 1.5% after yesterday's news that it was negotiating a possible acquisition of
Meanwhile, the tech-laden
was climbing 37.1 to 3933.4. The index was enjoying a relief rally following yesterday's losses which stemmed from a Wall Street analyst's concerns that Big Blue
third- and fourth-quarter revenue would be hurt by currency exchange rates.
, a semiconductor equipment maker, was the latest tech to issue a fourth-quarter earnings warning. The company, which plummeted 40%, cited supply-chain problems in its factory systems unit as the culprit.
The Street.com Internet Index
was bouncing 14.13 to 812.37, with
Elsewhere, the broader
was mounting 2.5 to 1491.8, while the small-cap
was slightly higher, 1.7 to 535.3.
Dow Jones Utility Average
was shedding earlier gains after hitting another intra-day high of 399.02. Spiking energy prices shot
to another all-time high of 83 3/4, while
topped to 56 3/4.
American Stock Exchange Oil & Gas Index
jumped to a new all-time high of 548.79 before falling fractionally lower. Yesterday, oil stocks soared following
decision to raise output by 800,000 barrels per day. The increase wasn't enough to drive down the price of oil, which hit $35.85 a barrel.
Philadelphia Stock Exchange Oil Service Index
also hit a new high of 143.98, before tapering off 1%. Due to the high price of oil, companies are increasing their capital spending budgets in order to extract more oil, giving oil services companies even more business.
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Treasuries are narrowly mixed on little news. With no major economic releases on the calendar, bond traders are keeping an eye on oil, which is lower so far, and on the corporate bond calendar, which is unusually heavy. Heavy corporate bond issuance can put pressure on Treasury prices.
A couple of
governors have piped up at the
National Association for Business Economics
conference underway in Chicago, but their comments largely cancel each other out.
, president of the
, in an interview in today's
Wall Street Journal
, raised the specter of interest-rate cuts, assuming that energy prices peak and the inflation rate declines. But
in comments to reporters this morning said the risk of too-high inflation is still greater than the risk of too-slow growth. Neither McTeer nor Moskow is a voting member of the
Federal Open Market Committee this year.
The benchmark 10-year Treasury note lately was down 3/32 at 99 24/32, lifting its yield to 5.783%.
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