Markets Shrug Off Fed Decision
The stock market reaped scattered gains Tuesday while Wall Street registered little reaction to news that federal policy-makers had refrained from lowering interest rates.
Renewed vigor in semiconductor issues was almost the only noteworthy development during an otherwise dull session.
Most of the popular market indicators never strayed far from their starting points. The Dow Jones industrial average finished up 5.64 at 4,620.42.
Losers nosed out gainers by 11 to 10 on the New York Stock Exchange where volume came to 290.36 million shares as of 4 p.m. Eastern time, down from 303.19 million Monday.
Stocks kept within a narrow range while investors awaited the outcome of the Federal Open Market Committee meeting. When the Fed’s policy arm, known as the FOMC, concluded its session at midafternoon without announcing any rate changes, as expected, stocks barely budged.
“I think that we’re just seeing a continuation of the summertime blahs that began last month after the initial whack against technology stocks,” said James Solloway, director of research at Argus Research Corp.
Some of the stocks that moved substantially or traded heavily Tuesday:
NYSE
Micron Technologies, up 4-3/8 to 72-3/8.
Semiconductor and other selected technology stocks rebounded after a sell-off Monday. Also active on the NYSE, Motorola rose 1-1/2 to 75-1/2, National Semiconductor rose 1-5/8 to 28-3/4 and Texas Instruments rose 2-3/4 to 76-1/2.
Upjohn, up 2-1/4 to 43.
Wall Street analysts raised the investment rating on the stock following news that Upjohn plans to merge with Sweden’s Pharmacia. There also was speculation that a hostile bid could be made for Upjohn.
NASDAQ
Intel, up 2 to 62-1/4.
Shares of the semiconductor industry leader rebounded after getting clobbered Monday when Wall Street analysts expressed concerns about Intel’s third-quarter profit outlook.
AMEX
Centennial Technologies, down 2 to 22.
The stock declined after the company posted fiscal 1995 income of $1.23 million, or 22 cents a share, up from $463,900, or 14 cents a share, a year earlier.