Dow gives back gains from week
Dow gives back gains from week
Copyright © 2007, Chicago Tribune
July 21, 2007
NEW YORK - Wall Street pulled back Friday, retreating from record levels following disappointing results from longtime favorites Caterpillar Inc. and Google Inc.
The Dow Jones industrial average tumbled 149.33 points, or 1.1 percent, to 13,851.08. The index earlier plunged by more than 200 points, and finished the week down 0.4 percent.
The Standard & Poor's 500 index fell 18.98, or 1.2 percent, to 1534.10, and ended the week 1.2 percent lower. The Nasdaq composite index slid 32.44, also off 1.2 percent, to 2687.60, and finished down 0.7 percent for the week.
The drop in stocks capped a losing week for the Dow after three weeks of gains, and came a day after the blue chips finished above 14,000 for the first time. The S&P 500 also logged a record close Thursday.
While Friday's retrenchment might not be surprising following weeks of somewhat volatile trading and the big gains Thursday, Caterpillar has been one of the best performers among the 30 stocks that make up the Dow. The Peoria-based maker of heavy equipment unnerved investors when its results came in well below expectations. Shares slipped $3.78, to $83.20.
Meanwhile, technology shares took a hit after a strong run Thursday. Google turned in a second-quarter profit that fell short of Wall Street's high expectations, while Microsoft Corp.'s earnings report wasn't impressive enough to alleviate concerns about the sector.
Google fell $28.47, or 5.2 percent, to $520.12. Microsoft, which like Caterpillar is part of the Dow, fell 35 cents, to $31.16, after its earnings met expectations, but failed to dazzle investors after several robust quarters that topped forecasts.
"As people start to absorb the numbers and start to see the second-quarter numbers aren't as good as the first quarter, that starts to create some pullback a bit," said Nick Raich, director of research at National City Private Client Group.
The dollar was lower against most other major currencies. Gold prices rose. Jitters over subprime lending also weighed on the market and led investors to buy up safer Treasury bonds instead.
As Treasury prices rose, the benchmark 10-year note's yield dropped to 4.95 percent from 5.03 percent late Thursday.
Copyright © 2007, Chicago Tribune
July 21, 2007
NEW YORK - Wall Street pulled back Friday, retreating from record levels following disappointing results from longtime favorites Caterpillar Inc. and Google Inc.
The Dow Jones industrial average tumbled 149.33 points, or 1.1 percent, to 13,851.08. The index earlier plunged by more than 200 points, and finished the week down 0.4 percent.
The Standard & Poor's 500 index fell 18.98, or 1.2 percent, to 1534.10, and ended the week 1.2 percent lower. The Nasdaq composite index slid 32.44, also off 1.2 percent, to 2687.60, and finished down 0.7 percent for the week.
The drop in stocks capped a losing week for the Dow after three weeks of gains, and came a day after the blue chips finished above 14,000 for the first time. The S&P 500 also logged a record close Thursday.
While Friday's retrenchment might not be surprising following weeks of somewhat volatile trading and the big gains Thursday, Caterpillar has been one of the best performers among the 30 stocks that make up the Dow. The Peoria-based maker of heavy equipment unnerved investors when its results came in well below expectations. Shares slipped $3.78, to $83.20.
Meanwhile, technology shares took a hit after a strong run Thursday. Google turned in a second-quarter profit that fell short of Wall Street's high expectations, while Microsoft Corp.'s earnings report wasn't impressive enough to alleviate concerns about the sector.
Google fell $28.47, or 5.2 percent, to $520.12. Microsoft, which like Caterpillar is part of the Dow, fell 35 cents, to $31.16, after its earnings met expectations, but failed to dazzle investors after several robust quarters that topped forecasts.
"As people start to absorb the numbers and start to see the second-quarter numbers aren't as good as the first quarter, that starts to create some pullback a bit," said Nick Raich, director of research at National City Private Client Group.
The dollar was lower against most other major currencies. Gold prices rose. Jitters over subprime lending also weighed on the market and led investors to buy up safer Treasury bonds instead.
As Treasury prices rose, the benchmark 10-year note's yield dropped to 4.95 percent from 5.03 percent late Thursday.
posted by Carlos T Mock at 7:35 AM
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