Dow Edges Higher As Bonds Get Back On Track

Some healthy profit reports didn’t impress, but blue-chip stocks struggled higher Tuesday as the bond market ended a short bout of inflation jitters, sending interest rates back toward last week’s 1-1/2-year lows.

The Dow Jones industrial average swung from an early 40-point gain to a 53-point loss before reversing course in the afternoon, closing with a gain of 24.07 at 8,096.29.

Broader stock indicators were mixed, with investors displaying a rare preference - by recent standards - for blue-chip issues over smaller-company shares.

Technology stocks put in a weak performance as a strong profit showing from Texas Instruments failed to set an upbeat tone for Tuesday’s main event, a third-quarter profit report from Intel.

After the markets closed, Intel reported a 21 percent improvement in third-quarter profits, but the results came in slightly shy of many Wall Street forecasts.

Advancing issues barely outnumbered decliners on the New York Stock Exchange, where volume totaled 510.34 million shares as of 4 p.m., up sharply from the 351.21 million traded during Monday’s sluggish holiday session.

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

NYSE

DuPont, down 2-11/16 at 58-1/16.

PaineWebber downgraded DuPont to “unattractive” from “neutral,” Dow Jones Newswires reported. The investment firm cited the impact of recent acquisitions and the potential loss of agricultural chemical sales to Monsanto.

Texas Instruments, down 5-7/16 at 135-9/16.

The semiconductor maker’s third-quarter profits beat most published forecasts, but its revenues were shy of more optimistic projections, Dow Jones Newswires reported.

General Motors, down 1-1/16 at 70-3/8.

The automaker’s third-quarter profit fell 16 percent compared with a year ago, but a strong performance by its North American operations helped it beat Wall Street’s expectations.

Eastman Kodak, up 1-1/8 at 64-11/16.

The photo-imaging concern’s third-quarter profit plunged 43 percent. But excluding one-time considerations, Kodak’s results beat analyst expectations.

NASDAQ

McAfee Associates, down 6-9/16 at 59-13/16.

Network General, up 15/16 at 24-15/16.

The makers of network management software agreed to merge in a deal that initially valued Network General at $1.3 billion, or $27.66 a share.

Children’s Place Retail Stores, down 5-27/32 at 7-17/32.

The children’s retailer warned that its second-half sales will be disappointing due to warm weather in September and October. Children’s Place also said its new stores have been performing below expectations.