Market ends lower after Intel report
NEW YORK – Wall Street staggered through another volatile session Wednesday, finally closing mostly lower after a Federal Reserve report showed some economic growth at the end of 2007 and after Intel Corp.’s disappointing profit report.
Stocks gave up a modest rally in the final 20 minutes of trading, continuing the fluctuations seen throughout the session as investors combed corporate profit reports and economic news that supported varying views about the soundness of the economy.
Stocks initially gained after the Fed report – its Beige Book survey of regional economies – suggested economic activity increased modestly from mid-November through December, though at a slower pace than in a previous survey.
The report seemed to quell some concerns about prospects for the economy that took on fresh urgency after Intel Corp. issued disappointing earnings after the closing bell Tuesday.
The Fed’s report bolstered enthusiasm among bullish investors who pointed to better-than-expected results from JPMorgan Chase & Co. and Wells Fargo & Co. The Dow Jones industrial average fell 34.95, or 0.28 percent, to 12,466.16.
Broader stock indicators also declined. The Standard & Poor’s 500 index fell 7.75, or 0.56 percent, to 1,373.20, and the Nasdaq composite index finished down 23.00, or 0.95 percent, at 2,394.59.
Investors remained edgy Wednesday, particularly after a drop Tuesday that took the Dow down nearly 280 points. Predictions by some economists that a recession is at hand have rattled Wall Street in recent weeks.
Intel was by far the biggest decliner among the 30 stocks that make up the Dow and also weighed on the tech-dominated Nasdaq. The chip maker fell 70 cents, or 12.4 percent, to $19.88.
Advancing issues narrowly outpaced decliners 2 on the New York Stock Exchange, where volume came to 2.11 billion shares compared with 1.53 billion traded Tuesday.
The Russell 2000 index of smaller companies rose 2.48 percent, or 0.36 percent, to 699.91.
In overseas trade, Japan’s Nikkei gave up 3.35 percent. London’s FTSE 100 finished down 1.37 percent, Frankfurt’s DAX fell 1.25 percent and Paris’ CAC fell 0.48 percent.