Stocks mixed following tech pullback

NEW YORK – Wall Street ended mixed Monday after weakness in the technology sector punctured some of the market’s enthusiasm over a report that suggested the economy could still be growing.

But comments from memory chip maker SanDisk Corp. about soft sales helped pull stocks off their highs and sent tech shares lower. The Dow Jones industrial average, which had been up more than 100 points, finished well off its highs.

The Conference Board’s leading economic indicators report showed a 0.1 percent rise for April, following a similar uptick in March. The index, aimed at predicting economic activity in the next three to six months, bolstered investors’ belief that the overall U.S. economy, while weak, is positioned for recovery.

After five months of declines in the leading indicators, some investors were concerned that March’s increase was an anomaly – so April’s advance was met with relief, said Hugh Johnson, chief investment officer of Johnson Illington Advisors.

But technology shares tugged at the market after SanDisk issued cautious comments at a JPMorgan technology conference Monday, said Neil Massa, senior trader at MFC Global Investment Management in Boston. SanDisk fell $2.42, or 7.5 percent, to $30.02. SanDisk’s remarks came on a day of light trading and dented but didn’t sink an upbeat mood on Wall Street.

“Even though you’re up only 0.1 percent, it’s very good news that the declining trend may have been reversed,” Johnson said, referring to the leading indicators report. “That is important for this reason: It’s consistent with the message of the markets.” The broader market, as measured by the Standard & Poor’s 500 index, rose 2.67 percent last week on cautious optimism about the economy.

The Dow rose 41.36, or 0.32 percent, to 13,028.16. The blue chips had been up nearly 150 points at their highs of the session.

Broader stock indicators finished mixed. The S&P 500 advanced 1.28, or 0.09 percent, to 1,426.63, and the technology-heavy Nasdaq composite index fell 12.76, or 0.50 percent, to 2,516.09.

In overseas trading, Tokyo’s Nikkei closed up 0.35 percent. In Europe, London’s FTSE closed up 1.15 percent, Frankfurt’s DAX rose 0.97 percent and Paris’ CAC 40 was up 1.26 percent.