Alexa
  • Directory of Taiwan

U.S. stocks rise despite more evidence of slowing economy

U.S. stocks rise despite more evidence of slowing economy

Wall Street advanced Wednesday, taking the Dow Jones industrials further into record high territory, despite more evidence of a slowing economy.
Stocks rose after the Institute for Supply Management said growth in the nation's service sector slowed in September from August, reflecting managers' concerns about the economy, interest rates and security issues. And a Commerce Department report that factory orders were weak again in August also left traders undeterred.
Wall Street has been torn between concerns that the economy is slowing too much and anticipation that economic data like Wednesday's reports will persuade the Federal Reserve to keep interest rates steady, or even lower them.
Investors were waiting for more clues about the economy in a speech by Federal Reserve Chairman Ben Bernanke, who is scheduled to speak on savings before the Economics Club of Washington.
On Tuesday, the Dow set new closing and trading highs, wiping records that had stood since Jan. 14, 2000.
In midmorning trading Wednesday, the Dow rose 38.50, or 0.33 percent, to 11,766.48, a new high.
Broader stock indicators also rose. The Standard & Poor's 500 index was up 2.22, or 0.17 percent, at 1,336.33 and the Nasdaq composite index rose 9.88, or 0.44 percent, at 2,253.53.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.57 percent from 4.62 percent late Tuesday. The dollar was down against other major currencies, while gold prices were down.
Light sweet crude was quoted up 28 cents at $58.96 a barrel on the New York Mercantile exchange.
Wal-Mart Stores Inc. fell $1.15, or 2.33 percent, to $48.30 after saying its September sales at stores open at least a year, a closely watched measure of retail performance known as same-store sales, rose 1.3 percent, not 1.8 percent as the company had forecast. The world's largest retailer, which plans to release September sales figures Thursday, said it miscalculated when it issued its projection.
Biotechnology company ImClone Systems Inc. rose $1.90, or 6.99 percent, to $20.07 after saying an unidentified international pharmaceutical company was willing to make an all-stock offer of $36 per share for the company. Imclone also criticized financier Carl Icahn for rejecting the bid and advised shareholders to rebuff his efforts to wrest control of the company.
XM Satellite Radio Holdings Inc. fell 39 cents, or 3.1 percent, to $12.19, after saying it added more than 285,000 subscribers to its satellite radio service, boosting its total base to more than 7.2 million subscribers.
Automakers received Wall Street's attention after Bear Stearns cut its rating on Ford Motor Co. to "Peer Perform" from "Outperform" and upgraded rival General Motors Corp. to "Peer Perform" from "Underperform." Ford was up 6 cents at $8.29, while GM, part of the Dow, was up 48 cents at $33.89.
Declining issues barely outnumbered advancers on the New York Stock Exchange, where volume came to 190.2 million shares, compared with 315.40 million traded at the same point Tuesday.
The Russell 2000 index of smaller companies was up 1.47, or 0.20 percent, at 719.82.


Updated : 2021-07-29 14:57 GMT+08:00