Show your support by donating any amount. (Note: We are still technically a for-profit company, so your
contribution is not tax-deductible.)
PayPal Acct: 
Feedback: 
Donate to VoyForums (PayPal):
| [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, [4], 5, 6, 7, 8 ] |
| Subject: U.S. stocks erase losses; Fed view awaited | |
|
Author: NEW YORK, Jan 29 (Reuters) |
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 11:22:02 01/29/03 Wed U.S. stocks erase losses; Fed view awaited (Updates to early afternoon, new byline) By Haitham Haddadin NEW YORK, Jan 29 (Reuters) - Stocks cut losses to stand near or above break-even on Wednesday afternoon as investors looked for bargains in a market that had declined following a speech by President George W. Bush which fed fears that war against Iraq was ADVERTISEMENT close. "I think the market was a little overdone," said Todd Leone, head of listed trading at S.G. Cowen. "Everybody came in and said we are going to war, but then people said this is pretty much what we have been hearing in the past. "There are some bargain hunters coming in and saying this has been pretty much been discounted. We are down about 10 percent on the month." Major market gauges pared earlier losses. The blue-chip Dow (^DJI - news) Jones Industrial average was down 4.52 points, or 0.06 percent, at 8,084.32, after earlier falling 1 percent. The broad Standard & Poor's 500 index added 2.81 points, or 0.33 percent, to 861.35. The tech-loaded Nasdaq Composite Index gained 6.56 points, or 0.49 percent, to 1,348.74. Semiconductor equipment stocks such as Novellus Systems (NASDAQ: NVLS - news) Inc. rose handsomely and helped the Nasdaq (NASDAQ: news) , following upbeat comments from brokerage powerhouse Merrill Lynch (NYSE: MER - news) on the firm. In his State of the Union speech on Tuesday night, Bush promised to deliver new intelligence on Iraq's alleged arms programs and vowed to use full military force to disarm Iraq if necessary. Nagging questions about what a conflict might mean for the tepid economic rebound and for a market battered three years in a row are keeping investors on edge. Investors are waiting for the Federal Reserve to wrap up its policy-setting meeting this afternoon. No change in the cost of borrowing is expected, but Wall Street will be tuning in to a statement from Fed Chairman Alan Greenspan and his team at 2:15 p.m. (1915 GMT) for their view on the world's largest economy. BLEAK EARNINGS REPORTS Oil stocks emerged as a bright spot during the session as oil prices rose on the threat of war. Dow component Exxon Mobil (NYSE: XOM - news) Corp. jumped $1.46, or 4.5 percent, to $34.12. BP Plc (LSE: BP.L - news - msgs) tacked on $1.86, or 5 percent, to $38.35. ConocoPhillips (NYSE: COP - news) rallied $1.88, or 4 percent, to $47.79. Novellus rose $1.58 to $31.11, or 5.3 percent, after Merrill Lynch raised the company's investment rating to "buy" from "neutral" to reflect its improving outlook and attractive valuation given a recent pullback in the stock price. The Philadelphia semiconductor index moved up 1.95 percent, reflecting gains in the likes of Applied Materials (NASDAQ: AMAT - news) , up 32 cents to $13.56, and Intel Corp (NASDAQ: INTC - news) . , up 26 cents to $16.29. This week marks the height of the fourth-quarter earnings season with many companies offering cautious outlooks for 2003 and damping sentiment on Wall Street. The market has closed lower in seven of the past nine sessions. Kraft Foods Inc (NYSE: KFT - news) . , the maker of Oscar Mayer meats and Velveeta cheese spread, sank $4.40, or 12 percent, to $31.71 and ranked as the most active on the Big Board. The company said quarterly earnings jumped 70 percent on lower costs, but warned that 2003 profits would be below expectations due to problems in Latin America and higher benefit costs. Altria Group Inc (NYSE: MO - news) . , which has just changed its name from Philip Morris Cos. Inc., slumped $1.25 to $37.13. The company, which owns the majority of Kraft Foods, said profits plunged 18 percent as it spent more to promote its cigarettes. Electronics testing equipment maker Photon Dynamics Inc (NASDAQ: PHTN - news) . tumbled $2.65, or 15 percent, to $14.95. The company posted a wider net loss, including a charge for impairment of goodwill and assets associated with its printed circuit board assembly business, which it has decided to exit. Verizon Communications Inc. , the No. 1 U.S. telephone company, jumped $1.53, or 4 percent, to $37.58. The company posted a fourth-quarter profit as strong wireless sales offset a loss of local telephone lines, but it forecast little or no revenue growth for 2003. In the news, Sprint Corp (NYSE: SDE - news) . Chairman William Esrey, who was diagnosed with cancer of the lymphatic system in November, will step down, according to a report on cable television news channel CNBC. Shares of Sprint lost $1.25 to $11.90, or 9 percent, and shares of Sprint PCS sank 23 cents to $3.50, or 6 percent. In his speech, Bush called for $1.2 billion in research funding to build hydrogen-powered vehicles. Selected hydrogen and fuel cell-related stocks rose. H Power (NASDAQ: HPOW - news) rose 19 cents, or 4.6 percent, to $4.30, and Plug Power Inc (NASDAQ: PLUG - news) . climbed 32 cents, or 6 percent, to $5.71. (With additional reporting by Elizabeth Lazarowitz, Doris Frankel, Denise Duclaux) [ Next Thread | Previous Thread | Next Message | Previous Message ] |