Profit Worries Hit Technologies; Markets Static
Technology shares were pounded by profit worries Tuesday, but the broad stock market was little changed as investors hesitated to move back into record territory following Monday’s big rally.
The Dow Jones industrial average rose 5.72 to 8,018.83, edging higher just before the close. The Dow, which jumped nearly 190 points on Monday in its first close above 8,000 since October’s steep slide, never strayed more than 30 points in either direction Tuesday.
Most broad-market indexes drifted lower, but advancing issues outnumbered decliners by a 6-to-5 margin on the New York Stock Exchange. Analysts said it was a reasonable to see the market pause after Monday’s powerful advance, which put some stock measures within easy reach of record levels.
“People want to worry about the market. It’s very richly valued, and it’s hard to make a case for it to go substantially higher,” said Richard E. Cripps, chief market strategist for Baltimore-based Legg Mason.
The most decisive action came on the technology-laden Nasdaq Stock Market, where decliners ruled the day by a 3-to-2 margin and the composite index fell 24.35, or 1.5 percent, to 1,606.37.
Some of the stocks that moved substantially or traded heavily Tuesday:
NYSE
Coca-Cola, up 1-5/16 at 65-7/8.
Merrill Lynch analyst Doug Lane raised his intermediate-term and long-term ratings on the soft drink giant’s stock, the Dow Jones News Service reported, citing a contact at the investment firm.
Cabletron Systems, down 7-1/2 at 15-11/16.
The networking company warned that it will report disappointing results for its third quarter ended Nov. 30. Cabletron, based in Rochester, N.H., cited weak sales in some domestic segments and delays in government purchasing decisions.
NASDAQ
Altera, down 10-15/16 at 40-3/4.
The semiconductor maker warned that it will post disappointing fourth-quarter results, prompting a series of brokerage downgrades.
Agouron Pharmaceuticals, down 8-1/2 at 31.
The drugmaker reported disappointing results in its clinical trials with AG337, an anticancer drug, and has agreed to terminate a related research alliance with Switzerland’s Roche Group. Agouron said it will halt development of the drug.
Food Technology Services, up 6-1/2 at 11-11/16.
Steris, up 1-7/16 at 49-7/16.
Sterigenics International, up 3-3/16 at 21-15/16.
The Food and Drug Administration approved use of irradiation to kill harmful bacteria such as E. coli in meat. All three companies have developed systems using irradiation for food-processing safety.