(Updated from 4:03 p.m.)
In a quiet day of trading, the stock market was stymied by new data that showed weakness in the economy.
Revised numbers for first-quarter
gross domestic product, the most anticipated economic report this week, came in just under economists' expectations. The GDP result was revised to 1.3%, down from a preliminary 2%, and below the 1.4% forecast. In other economic news,
durable goods orders for April came in weaker than anticipated.
Dow Jones Industrial Average ended the regular trading day lower by about 117 points to 11,005, and the
Nasdaq Composite Index lost 31 points to 2251. The
S&P 500 index was down about 15 points to 1278. Ahead of the Memorial Day weekend, trading volume was very light.
"We've run up a long way, and now we're selling off on some concerning data," said Peter Blatchford, a trader at
. "The numbers leave open the possibility that the Fed will be accommodating, but they can't lower rates to zero."
Investors continued to digest testimony last night from
Alan Greenspan, in which he pointed to the risks of continued economic weakness and hinted at the possibility for more rate cuts. The Federal Reserve chairman also said the five interest-rate cuts since January should begin to work their way through the economy later this year.
University of Michigan's
consumer sentiment index rose to 92 in May from 88.4 in April. The consumer sentiment number for the latest month was revised down from a preliminary level of 92.6.
An early upgrade on a trio of chip-equipment stocks by
gave some help to the semiconductor sector this morning. The securities firm raised its ratings on
to strong buy from accumulate.
Teradyne appeared to benefit the most from the upgrade: The stock closed up 1.3% to $44.49. KLA-Tencor closed down by 0.8% to $56.61; Applied Materials lost 1.3% to $53.71. The
Philadelphia Stock Exchange Semiconductor Index
, which tracks the industry, was up earlier in the day, but closed down by 0.6%.
closed down 2.8% to $49.95, and putting pressure on the Dow, after its financial arm
agreed to give $7 billion to financial services firm
. Finova closed up 19.7% to $2.31.
Positive earnings from
, a personal television recording service, boosted the stock 31.9% to $11.21. The company reported a first-quarter loss of $50.2 million, or $1.20 a share, slightly better than analysts' expectations of a $1.23 loss per share. The loss was wider than the year-ago period, but the first-quarter number showed a sequential improvement from the loss of $2 a share in the previous quarter.
( ADCT), which posted a loss of 15 cents a share for the second quarter, missed analysts' consensus for a loss of 13 cents a share. Yesterday evening, the company forecast a bottom line in the range of break even to a loss of 5 cents for the next quarter. ADC also said it may exit its nonstrategic business practices. Investors gave ADC a cold shoulder last night, and the stock closed down 16.4% to $8.60.
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