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Spokane, Washington  Est. May 19, 1883

Markets Calm Down As Investors Await News

Associated Press

Technology and smaller-company issues rose modestly Friday but still outperformed blue-chip stocks as the surging Nasdaq market finished the week more than 4 percent higher.

Trading calmed with earnings season winding down and the focus turning to next week’s key economic data.

The Dow Jones industrial average rose 1.08 to 5,567.99, ending the week with a gain of 32.51. The sluggish blue-chip index continued to trade in a narrow range Friday, moving little more than 20 points in either direction.

The Nasdaq composite and the Russell 2000 index of smaller companies closed at record highs for the seventh straight session as investors remained bullish about the prospects for smaller enterprises in an improving economy.

Advancing issues outnumbered decliners by about 13 to 9 on the New York Stock Exchange, where volume totaled 391.05 million shares as of 4 p.m., down from Thursday’s pace.

Trading was noticeably quieter as the mostly upbeat earnings reporting period wound down.

“It was an extraordinarily good season,” said Hugh Johnson, chief investment officer at First Albany, noting that with almost 400 companies in the S&P 500 having reported their first-quarter earnings, more than 56 percent beat expectations.

Some of the stocks that moved substantially or traded heavily Friday:

NYSE

Mobil, down 1-3/8 at 114-5/8.

The oil company said its board has voted to boost the quarterly dividend on Mobil common stock by 8 percent to $1 a share. Mobil said the increase “reflects strong earnings performance, a strong balance sheet, and confidence in the future.”

Sunbeam, down 7/8 at 13-7/8.

The stock fell for a second day after the appliance maker reported disappointing earnings for the fifth straight quarter. On Thursday, Sunbeam reported first-quarter earnings of $17.4 million, or 21 cents a share, a 42 percent drop from a year earlier.

Aetna Life and Casualty, down 1/8 at 71-1/4.

The insurer’s profits more than doubled in the first quarter as it turned last year’s investment losses into a gain. Net income was $347.7 million, or $3 per share.

NASDAQ

Gateway 2000, down 3-1/2 at 35-3/4.

The stock gave back part of its recent gains after concerns were raised about future profit margins and revenues. The worries came despite a strong earnings report late Thursday. Gateway said it earned $50.5 million, or 65 cents a share, for the quarter ended March 31, beating many estimates.

i2 Technologies, up from initial offering at 20 to 39-3/4.

The stock nearly doubled its offering price in its first day of trading, underscoring investors’ continuing interest in computer networking software companies. The company sold 2.2 million shares at $20 each last Thursday, well above the expected range of $11 to $13 a share.

Borland International, down 3-1/4 at 16-3/4.

Investors were unnerved that the software maker recognized some revenue during its fiscal fourth quarter that actually had been deferred from a license agreement last year. Late Thursday, Borland posted earnings of $8 million, or 24 cents a share, for the three months ended March 31.