N.Y. Stocks Dn; Mkt Watcher Sees Next Week Flat To Down
By Kaja Whitehouse
of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Major markets continue to slip Friday on low volume as
the latest round of economic data has Wall Street worried that an economic
recovery may be farther off than previously expected.
Reports Friday morning on gross domestic product, home sales and durable
goods are presenting a stronger case that the U.S. economy is not out of the
woods yet. On the other hand, the data backs recent comments by Federal
Reserve Chairman Alan Greenspan that rate cuts may continue, which is seen
as a silver lining, market watchers said.
Light volumes ahead of the Memorial Day holiday weekend suggest "limited
activity in investment decisions," said Brian Belski, fundamental market
strategist at U.S. Bancorp Piper Jaffray.
Still, Belksi sees markets moving "flat to lower" next week as investors sit
on recent gains, especially in the Dow Jones Industrial Average. The week
should start off slowly as "people start to come back" from vacation and
take time to digest Friday's news, he added.
First-quarter gross domestic product data rose at a revised 1.3% pace, below
lowered expectations of a 1.4% rise, the Commerce Department said.
Previously, economists had estimated growth in the period of 2%.
Meanwhile, existing home sales fell by 4.2% in April, after a 4.6% rise in
April, according to the National Association of Realtors. At the same time,
it was learned that orders for durable goods, or those meant to last three
years or more, grew only 2.2% in March, below expectations of 2.9%, the
Commerce Department reported.
Positive words for semiconductors are supporting the group Friday, with the
Philadelphia Semiconductor Index higher 1.25 to 660.02. Prudential
Securities upgraded the group to strong buy from accumulate, anticipating
the emergence of a new upcycle in orders. Applied Materials is ahead 50
cents to $54.96, KLA Tencor has gained 72 cents to $57.79 and Teradyne has
advanced 78 cents to $44.70.
Telecom stocks are floundering, with shares of VoiceStream Wireless Corp.
down 2.35 to $97.69. The wireless concern's shares dropped after Sonera
Holding BV cut its stake in VoiceStream to 2.1% from 4.1%, according to an
amended Schedule 13D filed Thursday with the Securities and Exchange
Commission.
Biotechnology is lower following a run-up Thursday, with the AMEX
Biotechnology Index down 12.7 to 612.80. Immune Response Corp. shares are
off 48 cents to $5.82, while Abgenix shares are down $2.07 to $41.92, and
MedImmune shares have dropped $1.69 to $41.08. Dragging the Dow lower,
Wal-Mart Stores Inc. shares are off $1.25 to $51.63, while Honeywell
International Machines stocks is off $1.26 to $50.24.
Home building stocks dropped on concerns over home sales. Pulte Corp. shares
are off $1.68 to $40.48, and Centex Corp. shares fell 97 cents to $37.50,
while DR Horton Inc. stock dropped 49 cents to $20.76.
Of the few stocks up on the Dow, Alcoa Inc.'s shares are the best performer,
up 85 cents to $43.36.
Online auctioneer QXl Ricardo PLC's American depository receipts gained more
than 80%, or about $1.82, to $4.00 after it said revenue rose 43% to GBP3.1
million, from GBP2.2 million a year ago. Its losses in the quarter narrowed
to GBP18.6 million, from GBP23.7 million last year.
Walt Disney's stock has dropped as talk rattles trading floors that perhaps
its new film "Pearl Harbor" will be more of a bust than a blockbuster.
Shares of Disney are off 74 cents to $32.56.
The Dow Jones Industrial Average has lost 87.44, or 0.8, to 11034.9, while
the Nasdaq Composite Index has droped 20.9, or 0.9%, to 2261.
The Standard & Poor's 500 Index is off 11.1, or 0.9%, to 1281.96.
On the New York Stock Exchange, decliners outpace advancers by 1,541 to
1,413. Volume on the Big Board is 619 million. Up volume is 214 million
while down volume is 391 million.
-By Kaja Whitehouse, Dow Jones Newswires, 201-938-5393;
kaja.whitehouse.dowjones.com
(END) DOW JONES NEWS 05-25-01
02:54 PM |
