Nasdaq Closes Higher; Dow Slips

The 30-year bond rises sharply after the government discloses plans to stop selling the issue.
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Updated from 3:46 p.m. EST

The

Dow 30 closed lower Wednesday, after trying and failing to remain in positive territory, but tech stocks ended higher following a benign

GDP report.

The Dow lost 46.84 points, or 0.5%, to 9075.14. The

Nasdaq added 22.80 points, or 1.4%, to 1690.21, while the

S&P was virtually unchanged at 1059.78. The latest GDP numbers showed the U.S. economy contracted by 0.4% in the third quarter. Economists were expecting a decline of 1%.

The bond market stole some of the limelight from equities, which were trying to recover from two straight days of declines. Around 4 p.m., the 10-year Treasury note was gaining 1 11/32 to 106, yielding 4.24%. The 30-year was up 5 4/32 to 107 21/32, yielding 4.88%, after the Treasury Department disclosed plans to stop selling the long bond. Check out

TheStreet.com's

separate story on the end of the 30-year.

Overseas stocks were mixed. London's FTSE rose 0.7% at 5040, and Germany's Xetra DAX gained 0.3% to 4559. Japan's Nikkei ended down 1.4% to 10,366, while Hong Kong's Hang Seng was little changed at 10,074.

The worldwide economic slowdown continued to be felt, with

Alcatel

(ALA)

forecasting a $4.5 billion loss and setting 10,000 additional job cuts. The company said it doesn't see a rebound before the middle of 2002. Shares of the French telecom equipment maker rose $1.09, or 7.9%, to $14.85.

Elsewhere,

Sun Microsystems

(SUNW) - Get Report

made strides, trading up 61 cents, or 6.4%, to $10.15.

Cisco

(CSCO) - Get Report

also moved to the upside, climbing 35 cents, or 2.1%, to $16.92.

Intel

(INTC) - Get Report

saw its shares rise following a conference call held after the close Tuesday. The stock traded up 88 cents, or 3.7%, to $24.42 on positive comments from the company.

Adobe

(ADBE) - Get Report

was roughed up after it warned that fourth-quarter and 2002 earnings would fall short of analysts' estimates. The company also said it plans to cut 150 jobs, or 5% of its staff. Adobe fell $2.20, or 7.7%, to $26.55.

Qwest

(Q)

posted a third-quarter loss of 8 cents a share, widely missing analysts' forecasts. Shares of Qwest were losing $2.92, or 18.3%, to $13.08.

PacifiCare Health

(PHSY)

dropped 6.8% following its third-quarter earnings, which came in well above analysts' estimates. But the company offered little visibility for the coming quarters, which worried investors. The stock fell $1.05 to $16.54.

In war news, the U.S. government said it has troops on the ground in Afghanistan. About 100 special-forces troops are aiding anti-Taliban forces in setting up supply lines, according to the Pentagon.