Stocks Mixed Despite Greenspan’s Comments

Stocks ended mixed Wednesday, failing to hold on to some big gains early in the session, but investors were heartened that the market didn’t endure its third straight session of wild gyrations.

Comforting words on the economy from Federal Reserve Chairman Alan Greenspan were overshadowed by a plunge in technology stocks and profit-taking by investors eager to cash in on the market’s recent rise.

The Dow Jones industrial average rose just 8.35 to 7,506.67, only a slight move compared with Monday’s devastating 554-point plunge or Tuesday’s 337-point surge. Broader stock market measures were mixed, with smaller-company stocks posting the best performance.

It’s been a bumpy ride down Wall Street this week, with the worst point drop ever for stocks coming on Monday and then biggest gains in history following on Tuesday.

Trading, however, calmed Wednesday, initially pacified by turnarounds overnight in Asian and European financial markets. Concerns over the stability of Southeast Asian markets caused turmoil in global stock markets since late last week.

But it was Greenspan’s testimony to Congress that set off a morning stock rally, sending the Dow up 123 points. The Fed chairman said that the stock market’s recent decline may help the economy by slowing it to a more sustainable pace.

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

NYSE

Carson Pirie Scott, up 7-5/8 to 45-1/8.

Proffitt’s, up 1-3/8 to 28-1/8.

Proffitt’s agreed to acquire rival department store chain Carson Pirie Scott for $790 million in stock. The combined company would have 229 stores in 24 states and annual sales of more than $3.3 billion.

OfficeMax, up 1 to 13-7/16.

The office supply retailer said it expects its third-quarter earnings to exceed Wall Street expectations.

NASDAQ

Tower Semiconductor, down 6-3/8 to 13-1/2.

The Israeli maker of integrated circuits on silicon wafers said orders have recently slowed and it expects the decrease to reduce sales and margins in the near future.

IQ Software, down 1-1/4 to 9.

Dow Jones News Service reported that Interstate/Johnson Lane Inc. downgraded IQ Software, saying the company continues to have difficulty developing its sales efforts on the West Coast.

AMEX

Horizon Pharmacies, up 1-3/8 to 14.

According to Investor’s Business Daily’s “The New America” column, Horizon Pharmacies Inc. plans to buy about 10 more drug stores a year, selling more non-drug items.