Wall Street holds steady in uneventful session
Wall Street found some stability today, leaving stocks barely changed following the sell-off last week that sent the major indexes to some of their lowest levels of the year.
Analysts cautioned against reading too much into the session, however, noting the market’s troubles aren’t over.
They said investors were merely biding their time until they get more news about where business - or the economy - is headed.
‘‘I think people don’t know what to do so most aren’t doing anything,’’ said Jon Brorson, director of equities at Northern Trust.
‘‘There’s no conviction out there, there are no real buyers. People don’t want to miss it when the market bounces back, but by the same token they’re not willing to step in and buy.’’
The Dow Jones industrial average closed down 0.34 at 9,605.51, according to preliminary calculations, recovering nearly all of an early drop of more than 100 points.
Broader stock indicators were slightly higher. The Standard & Poor’s rose 6.76 to 1,092.54, just above its low close for the year set Friday and at a level last seen in October 1998.
The Nasdaq composite index gained 7.68 to 1,695.38.
Earlier in the session, the Dow and Nasdaq had traded close to their 2001 lows. The Dow is now about 216 points above its low close for the year while the Nasdaq would have to fall another 57 to break through its own low.
The market held mostly steady today despite significant losses in Asian and European markets that suggested the US economic malaise is part of a larger global problem. Japan’s Nikkei stock average hit a new 17-year low and Britain’s FTSE 100 fluctuated below 5,000 for the first time in nearly three years.
‘‘The losses overseas are a pretty big deal because for demand in the US to pick up, you need global demand to pick up. If the US picks up but the rest of the world doesn’t, it could cause a problem,’’ said John Forelli, portfolio manager for the John Hancock Core Value Fund.
Tech stocks got a boost from gains in Intel, which rose 18 cents to 26.07 dollars, and Dell, which climbed 1.02 dollars to 22.57 dollars.
Qwest Communications also advanced, up 1.76 dollars to 19.90 dollars, a nearly 10% gain, after the multimedia communications company lowered its outlook for the rest of the year and 2002 because of deteriorating economic conditions. Qwest is also cutting 4,000 jobs.
But there were some losses, including Ciena, which dropped 74 cents to 13.41 dollars. Blue chips were also uneven.
Pharmaceutical and tobacco stocks, sectors that are popular during times of economic uncertainty, advanced. Merck gained 1.80 dollars to 66.10 dollars, while Philip Morris rose 1.07 dollars to 48.15 dollars.
Manufacturing and industrial stocks struggled, though. Alcoa dropped 1.65 dollars to 33.80 dollars, while Boeing lost 1.72 dollars to 43.46 dollars, extending losses triggered last week by worries its business is slowing.
The uneventful session provided at least a temporary pause from the selling that has dominated Wall Street in recent weeks. With third-quarter earnings warnings expected this month, investors have been on edge.
Stocks plummeted last week, including a nearly 235-point slump in the Dow on Friday, as companies remained unable to forecast a business turnaround.
The Government’s report that unemployment in August was at its worst level in four years added to the market’s gloom.
Analysts have said the market won’t be able to recover until the economic and corporate news start to show signs that business is stabilising.
They also say investors want to see that the seven interest rate cuts made this year by the Federal Reserve have an effect. So far that, hasn’t happened.
Declining issues led advancers nearly 2 to 1 on the New York Stock Exchange. Volume came to 1.24 billion shares, compared with 1.43 billion Friday.
The Russell 2000 index fell 4.46 to 440.73.
Overseas, the Nikkei stock average tumbled 3%. European stocks were weak, too, but closed well above their lows earlier in the session. Germany’s DAX index slipped 1.3%, while France’s CAC-40 and London’s FT-SE 100 each dropped 0.7%.
