Blue chips rise, tech stocks fall

Associated Press

NEW YORK – Blue chip stocks surged today, but technology issues fell back after an earnings warning from National Semiconductor revived worries about high-tech profits.

The latest batch of earnings reports received a mixed reception from investors, and spurred no major buying or selling. Investors remained focused on, Nortel and Compaq, which were due to report their results after the market closed.

The Dow Jones industrial average closed up 121.35 at 10,393.07, according to preliminary calculations.

Broader stock indicators were mixed. The tech-focused Nasdaq composite index was off 48.87 at 3,419.82. The Standard &Poor’s 500 index was up 2.35 at 1,398.13.

The third-quarter earnings season doesn’t wrap up for another week, but analysts don’t expect upcoming numbers to move the market the way IBM’s disappointing results did last week, sending the Dow down more than 400 points during Wednesday’s trading.

“The market is basically through with its dirty work,” said Charles Pradilla, chief investment strategist at SG Cowen Securities.

That doesn’t mean it will be easy going for tech stocks. Although the market has largely advanced in the last four sessions, pricey tech issues have been less stable. Investors aren’t likely to see a quick comeback.

Tech companies “were down sharply, 40 percent off their highs. It is going to take a long healing process before any gains are sustainable,” said Steven Goldman, market strategist for Weeden &Co.

The sector, which ended the previous session slightly down, weakened again after an earnings warning late Monday from chip maker National Semiconductor, which tumbled $11.56, or about 32 percent, to $24.44.

Chip makers Intel and Advanced Micro Devices also fell, trading down $1.13 to $42.19, and off $1.81 at $20.13, respectively.

Microsoft, a Dow component, slipped 63 cents to $61.50.

The Dow moved higher on banker J.P. Morgan, which rose $7.44 to $145.94. Its merger partner Chase Manhattan was up $1.56 at $40.

Earnings continued to affect individual stocks. Toothpaste maker Colgate-Palmolive rose $3.91 to $53.12 after it reported earnings slightly ahead of analyst expectations.

Oil companies ExxonMobil, Texaco and Chevron all beat Wall Street estimates, but their stocks slipped on concerns about how long they will benefit from higher energy prices.

Advancing issues outnumbered decliners by a ratio of 12 to 11 on the New York Stock Exchange, where volume came to 1.15 billion shares, compared with 1.02 billion in the previous session.

The Russell 2000 index fell 2.10 to 487.86.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Snohomish residents Barbara Bailey, right, and Beth Jarvis sit on a gate atop a levee on Bailey’s property on Monday, May 13, 2024, at Bailey Farm in Snohomish, Washington. Bailey is concerned the expansion of nearby Harvey Field Airport will lead to levee failures during future flood events due to a reduction of space for floodwater to safely go. (Ryan Berry / The Herald)
Harvey Field seeks to reroute runway in floodplain, faces new pushback

Snohomish farmers and neighbors worry the project will be disruptive and worsen flooding. Ownership advised people to “read the science.”

IAM District 751 machinists join the picket line to support Boeing firefighters during their lockout from the company on Thursday, May 16, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Amid lockout, Boeing, union firefighters return to bargaining table

The firefighters and the planemaker held limited negotiations this week: They plan to meet again Monday, but a lockout continues.

N3054V accident site. (Alaska State Trooper Photo)
Lake Stevens pilot, who lived ‘Alaska dream,’ died in Fairbanks crash

Former Snohomish County lawyer Harry “Ray” Secoy III, 63, worked as a DC-4 pilot in Alaska in the last years of his life.

Air and ground search and rescue teams found Jerry Riedinger’s plane near Humpback Mountain on Monday. (WSDOT photo)
Remains of pilot recovered near Snoqualmie Pass after Arlington flight

Jerry Riedinger never made it to Ephrata after departing the Arlington airport Sunday. Investigators have not determined the cause of the crash.

Federal prosecutors say the two men shown here outside the U.S. Capitol on Jan. 6, 2021, are Tucker Weston, left, and Jesse Watson. (U.S. Attorney’s Office for the District of Columbia)
Lynnwood roommates sentenced for roles in Jan. 6 riot

Tucker Weston was given two years in prison Thursday. Jesse Watson received three years of probation in August 2023.

Lynnwood firm faces $790K in fines for improper asbestos handling

State regulators said this is the fifth time Seattle Asbestos of Washington violated “essential” safety measures.

A truck towing a travel trailer crashed into a home in the Esperance neighborhood Thursday, May 23, 2024, in Edmonds, Washington. (South County Fire)
Man seriously injured after his truck rolls into Edmonds home

One resident was inside the home in the 22500 block of 8th Avenue W, but wasn’t injured, fire officials said.

Ferry workers wait for cars to start loading onto the M/V Kitsap on Friday, Dec. 1, 2023 in Mukilteo, Washington. (Olivia Vanni / The Herald)
The Memorial Day holiday weekend travel nightmare is upon us

Going somewhere this weekend? You’ll have lots of company — 44 million new BFFs — on planes, trains and automobiles.

Bothell family says racism at Seattle Children’s led to teen’s death

In February 2021, Sahana Ramesh, the daughter of Indian immigrants, died after months of suffering from a rare disease.

Boeing Firefighters and supporters have a camp set up outside of Boeing on Airport Road as the company’s lockout of union firefighters approaches two weeks on Thursday, May 16, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Union firefighters reject Boeing’s latest contract offer

The union’s 125 firefighters on Wednesday overwhelmingly rejected the offer, which included “an improved wage growth” schedule

A “No Shooting” sign on DNR land near Spada Lake is full of bullet holes on Thursday, Feb. 8, 2024, along Sultan Basin Road near Sultan, Washington. People frequent multiple locations along the road to use firearms despite signage warning them not to. (Ryan Berry / The Herald)
County pumps the brakes on planned Sultan shooting range

The $47 million project, in the works for decades, has no partner or funding. County parks officials are reconsidering its viability.

Suzan DelBene, left, Rick Larsen
Larsen, DelBene request over $40M for projects in Snohomish County

If approved, Congress would foot the bill for traffic fixes, public transit, LED lights and much more around the county.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.