Updated from 4:13 p.m. EDT
Blue chips lost their bid for a perfect week on Wall Street as profit-takers emerged on an options-expiration Friday. Tech stocks managed their sixth consecutive gain.
Dow Jones Industrial Average
fell 21.28 points, or 0.2%, to 10,471.91. The
lost 1.80 points, or 0.15%, to 1189.28, while the
rose 3.84 points, or 0.19%, to 2046.42. The 10-year Treasury was down 3/32 in price to yield 4.12%, while the dollar firmed against the euro and the yen.
All three major indices posted strong gains for the week and sit well above their 50- and 200-day moving averages. For the five sessions, the Dow was up 331 points or 3.3%, the S&P 500 rose 35 points or 3.1%, and the Nasdaq added 69 points, or 3.5%.
"We're above technical strength, which leads me to believe we've got some more upside to go," says Paul Nolte, director of investments with Hinsdale Associates. "The big number to focus on next week will be the durable goods numbers, which will help us define if we're in a soft spot or not. The market is going to be fairly volatile next week."
About 1.62 billion shares changed hands on the
New York Stock Exchange
Friday, with decliners beating advancers by a 9-to-7 ratio. Volume on the Nasdaq was 1.50 billion shares, with decliners outpacing advancers 8 to 7.
was some well-justified profit-taking, which should be totally expected," says Joe Liro, an equity strategist with Stone & McCarthy Research Associates. "We got a very impressive week. There's still some upside to go, but I don't think we'll get new highs for the year."
Oil fell again Friday. The June crude contract, which lost 2.9% over the week, closed 12 cents lower at $46.80 a barrel. On Monday, the July contract becomes the front contract for the month.
Chairman Alan Greenspan addressed the topic of energy to the Economic Club of New York, saying high oil prices could temper economic demand and serve as their own brake.
"This emerging condition could encourage the buildup of enough of an inventory buffer to damp the price frenzy," said Greenspan. "Since the end of 2003, the rise in the value of imported oil -- essentially a tax on U.S. residents -- has amounted to about three-fourths of a percent of GDP. The effects were far larger in the crises of the 1970s. But, obviously, the risk of more-serious negative consequences would intensify if oil prices were to move materially higher."
Homebuilding companies took a hit after Greenspan said there's no national housing bubble, despite some localized froth. He also commented that housing prices are unlikely to decline.
was down 1.2%.
fell 0.7% and
was lower by 0.2%.
Stronger areas of the market Friday included technology, airlines, semiconductors and biotech. Materials, financials and retail were among the weaker sectors.
Much of Friday's corporate news concerned mergers and acquisitions, with
agreeing to a $2.1 billion buyout that takes its shares private at $14 apiece and
joining forces to create the sixth-largest U.S. airline.
Maytag surged 24.6%, up $2.84 to $14.40. US Airways fell 29 cents, or 23.4%, to 95 cents, having added 61% Thursday. America West was up 36 cents, or 7.5%, to close at $5.17.
first-quarter earnings fell 7% from a year ago to $291 million, or 31 cents a share, on a 1% dip in revenue to $3.63 billion. The bottom-line number was a penny above analyst forecasts. Gap was lower by 28 cents, or 1.3%, to $21.46.
also reported a penny beat in its first quarter but issued guidance for future periods that sent its shares down 10.4%.
The retailer, which has been hurt by weak demand for electronic gadgets such as its Ionic Breeze air purifier, expects to lose 40 cents to 45 cents a share this quarter. Analysts had been expecting a loss of 16 cents. Brokerage J.P. Morgan downgraded the stock to underweight from neutral. After a brief after-hours halt overnight, the shares fell $1.45 to $12.49.
Tech investors saw the semiconductor industry book-to-bill ratio for April Thursday night. The report, which measures shipments against new orders among chip suppliers, came in at 0.8, meaning $80 of new orders was received for every $100 of product shipped. The ratio was slightly above March's 0.78 reading.
Chip stocks have been a key component of the Nasdaq's advance this week, with the Philadelphia Stock Exchange semiconductor index rising every day since Monday for a cumulative gain of more than 3%.
Advanced Micro Devices
all have seen decent gains over the period.
In other earnings,
said first-quarter earnings quadrupled to $63.5 million, or 20 cents a share, on better-than-expected revenue of $364.8 million. Adjusted earnings of 27 cents a share beat estimates by 2 cents. Shares added $1.46, or 3.8%, to $39.98. Marvell's rise gave the Philadelphia Semiconductor Sector Index a 1.2% boost.
said first-quarter earnings rose to $76.1 million, or 31 cents a share, from $42.5 million, or 18 cents a share, a year ago. Revenue for the quarter was $355.1 million. Excluding items, the company earned $74.9 million, or 30 cents a share. The Thomson First Call consensus was for EPS of 28 cents on revenue of $348 million. Autodesk lost 68 cents, or 1.9%, to $35.88.
reported a first-quarter profit of $8.1 million, or 17 cents a share, compared with a loss of $4.3 million, or 11 cents a share, a year earlier. Revenue for the quarter was $61.3 million. Excluding items, the company earned $17 million, or 32 cents a share, a penny better than expectations. The stock was off $1.71, or 8.6%, to close at $18.07.
reported fiscal second-quarter net income of $19.4 million, or 7 cents a share. Revenue was $144.8 million, down about 1% year over year. Excluding items, the company's profit matched the Thomson First Call average estimate. Brocade fell 50 cents, or 11.3%, to $3.93.
jumped 9.8% after the company announced it has received FDA clearance for its Proquin XR treatment for uncomplicated urinary tract infections. Shares rose 40 cents to $4.47.
shares continued to rally early Friday after a
Wall Street Journal
article reported that the company is moving to sell certain plants to
. The transaction could involve as many as 15 Visteon locations. The stock, which gained 32.5% during Thursday's session, added another $1.51, or 29.8%, to $6.57.
reinstated a dividend almost five years after canceling it in the AOL merger. Time Warner will pay out 5 cents on common stock starting in the third quarter. The dividend is the company's first since December 2000, when a premerger Time Warner paid 4.5 cents. The stock dipped 14 cents, or 0.8%, to $17.61.
In ratings news, UBS upgraded
to buy from neutral on Friday, predicting investors will begin to look past 2005 and see the earnings power Symantec could have in 2006. Shares of Symantec rose 41 cents, or 1.9%, to $22.11.
Prudential Equity downgraded
American Eagle Outfitters
Abercrombie & Fitch
to underweight on concerns that an oversupply of denim will hit the retailers during the back-to-school time frame. The company also reiterated its underweight rating for
American Eagle was down $1.07, or 3.9%, to close at $26.64. Abercrombie & Fitch was lower by 71 cents, or 1.3%, to $54.49. Pacific Sunwear fell 69 cents, or 3.2%, to $20.99. Aeropostale was down 23 cents, or 0.9%, to $26.22.
Overseas markets were mixed with London's FTSE 100 recently adding 0.2% to 4971 and Germany's Xetra DAX unchanged at 4360. In Asia, Japan's Nikkei lost 0.4% overnight to 11,037, while Hong Kong's Hang Seng added 0.1% to 13,717.
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