• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Dow Up 6, Nasdaq Down 2 As Stocks Mixed

Posted on: Monday, 20 October 2003, 06:00 CDT

Stocks were mixed Monday, as a strong profit showing from 3M couldn't lead the market past a downbeat report about future economic activity.

In late morning trading, the Dow Jones industrial average was up 6.14, or 0.1 percent, at 9,727.93, having gained 0.5 percent in the previous week.

The broader market gauges were lower. The Nasdaq composite index was down 2.18, or 0.1 percent, at 1910.18, following a weekly loss of 0.2 percent. The Standard & Poor's 500 index was down 1.30, or 0.1 percent, at 1038.02, having risen 0.1 percent last week.

Even before the Conference Board reported a decline in its gauge of leading economic indicators, the market's initial rally appeared to be fading. Analysts said investors may be locking in prices as many believe the third-quarter's strong earnings have pushed stocks as high as they'll go.

"People may be feeling it's time for a rest ... to sit back and see how the market really is faring," said Richard A. Dickson, senior market strategist, at Lowry's Research Reports in Palm Beach, Fla. "The attitude is that there's no rush."

The Conference Board reported Monday that its Index of Leading Economic Indicators declined by 0.2 percent in September to 113.0, slightly below analysts' expectations. The dip marked the first decline in the index since March, and followed a 0.4 percent rise in August.

Investors are also closely watching third-quarter earnings reports for solid evidence the economy is improving.

Before the opening bell, 3M Co. said its profits were up nearly 22 percent on strong sales, increased productivity and reduced costs, beating analyst estimates by 10 cents a share. In late morning trading, the maker of Scotch-brand tape and Post-it Notes rose 36 cents, to $74.41.

The company's results were gratifying to investors who have been particularly concerned about the struggling manufacturing sector.

Southwest Airlines Co. rose 36 cents to $18.76, after the discount carrier's earnings rose on strong summer travel. The company met analysts' expectations.

Citigroup, the nation's largest financial institution, reported record profits of $4.7 billion for the third quarter, well above Wall Street expectations. But its shares were down 24 cents, at $48.14.

Advancing and declining issues were even on the New York Stock Exchange. Volume came to 318.93 million shares traded, compared with 405.97 million at the same point Friday.

The Russell 2000 index, which tracks smaller company stocks, was down 1.30, or 0.3 percent, to 520.04.

Overseas, Japan's Nikkei stock average finished 1.1 percent higher Monday. In afternoon trading in Europe, France's CAC-40 advanced 0.02 percent, Britain's FTSE 100 rose 0.1 percent and Germany's DAX index gained 0.5 percent.

----

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

More News in this Category