|
Home Page
Stocks Generally Higher Before Fed Meeting
By MICHAEL J. MARTINEZ, AP Business Writer
NEW YORK - Stocks traded generally higher Tuesday as investors
sought bargains in anticipation of a consoling statement from the
Federal Reserve (news - web sites) on interest rates and the economy.
Less risky large-caps and blue chips rose, while smaller companies
and tech stocks lost their early gains.
In early afternoon trading, the Dow Jones industrial average rose
55.19, or 0.6 percent, to 10,158.08 after climbing more than 100
points higher in the first 10 minutes of trading. Those larger gains
were shed as investors, still wary of the finicky markets, locked
in what profits they could.
Broader stock indicators were mixed. The Standard & Poor's 500
index gained 4.21, or 0.4 percent, to 1,108.70. The tech-heavy Nasdaq
composite index fell 1.07, or 0.1 percent, to 1,938.13 after spending
much of the day in positive territory, the result of investors moving
out of technology stocks and into defensive positions in healthcare,
consumer products and finance.
Buyers were cheered by the latest Commerce Department (news - web
sites) economic report, which said housing construction fell 4 percent
in February due to harsh weather in many parts of the country, although
January's figure was adjusted upward. Even with the declines, however,
both January and February's levels of activity were still considered
healthy.
"I think the market's rebound is responding to the data we've
received," said Stuart Freeman, chief equity strategist for
A.G. Edwards & Sons. "The bombings in Spain have taken
up a lot of attention, but I think people are now starting to look
at the economic data, which on balance has been positive."
The Fed's Open Market Committee, which was meeting Tuesday, was
expected to keep interest rates stable. But analysts said a signal
from the Fed that rates would remain low for the rest of 2004 would
help investors regain some confidence after major losses in five
of the last six sessions.
Mergers and acquisitions continued in the financial sector, one
of the few stalwarts in recent weeks. BancWest Corp., a Hawaii-based
subsidiary of France's BNP Paribas, said it would acquire Community
First Bankshares Inc. for about $1.2 billion in cash. Community
First jumped $4.17, or 15 percent, to $32.17.
Lehman Brothers Holdings Inc. gained 83 cents to $85.48 after it
posted record first-quarter earnings and trounced analysts' expectations
by 54 cents per share.
Bank of America Corp. and FleetBoston Financial Corp. agreed to
pay a total of $515 million to resolve allegations of improper mutual
fund trading. The two companies, set to merge in April, said they
would also reduce fees investors pay by $160 million. Bank of America
climbed 42 cents to $79.88 and FleetBoston rose 14 cents to $44.24.
Film studio Metro Goldwyn Mayer Inc. was up $1.26 at $17.46 after
the company said it was considering paying a large one-time dividend
to investors. Media reports pegged the dividend at between $6 and
$9 per share.
Earnings came in below Wall Street estimates at food producer General
Mills Inc. due to charges stemming from its 2002 acquisition of
Pillsbury. General Mills also predicted its 2004 earnings would
fall below current estimates. Shares fell 26 cents to $46.09.
Advancing issues outnumbered decliners by nearly 3 to 2 on the New
York Stock Exchange (news - web sites), where volume came to 734.72
million shares, compared to 787.38 million at the same point Monday.
The Russell 2000 index of smaller companies was down 3.67, or 0.6
percent, at 563.28.
Overseas, Japan's Nikkei stock average dropped 0.7 percent. Britain's
FTSE 100 and France's CAC-40 both closed 0.4 percent higher for
the session, while Germany's DAX index gained 0.3 percent in late
trading.
Continue With:
03-16-04
Fed: Rates Unchanged, Pledges Patience
03-16-04
Dollar Weakens as Fed Stands Pat on Rates
03-16-04
Feb Housing Starts Fall, Retail Sales Up
03-16-04
Fed Keeps Rates Unchanged at 1958 Lows
03-16-04
Housing Construction Drops in February
03-16-04
Oil Hits One-Year High
03-16-04
Fed Meets, Rates Expected to Stay Steady
03-16-04
Survey: More Companies to Hire in 2Q
03-16-04
Housing Starts: Larger-Than-Expected Drop
03-16-04
Top Tax Season Trends
03-16-04
Survey paints a rosier picture for jobseekers
03-16-04
Unions Urge Probe of China Work Places
03-16-04
US credit card debt quality better in Jan.
03-16-04
US Feb housing starts see larger-than-expected
Mortgage
News
| 
