(Source: Business Week)
U.S. stocks closed mixed Tuesday, with the Dow industrials outpacing other major indexes as investors bought blue-chip, health care, and energy issues but took profits in techs and financials. The large-cap Standard & Poor's 500 index dipped below the 900 level at one point in the session before rebounding to finish nearly unchanged.
New stock offerings by several companies affected the market's performance, as did crude oil futures, which climbed on investors' expectations for improved demand down the road.
On Tuesday, the 30-stock Dow Jones industrial average finished higher by 50.34 points, or 0.60%, at 8,469.11. The broader S&P 500 index edged lower by 0.89 points, or 0.10%, to 908.35. The tech-heavy Nasdaq composite index shed 15.32 points, or 0.89%, to 1,715.92. On the New York Stock Exchange, 17 stocks were lower in price for every 13 that advanced. Nasdaq breadth was 17-10 negative.
The market was seeing some volatility before options expire on Friday.
Treasuries rose. The dollar fell. Gold climbed.
Investors Tuesday eyed reports that the U.S. trade deficit widened 5.5% to $27.6 billion in March from a $26.1 billion gap in February, and that the median U.S. single-family home price fell 13.8% in the 2009 first quarter from the year-earlier period. April retail sales data scheduled for release Wednesday are not likely to confirm speculation that the recession is slowing, says S&P MarketScope.
News that six top General Motors Corp. (GM) executives sold more than 200,000 company shares on Friday and Monday also weighed on the market. The Associated Press reports that in early trading Tuesday, GM shares dropped to $1.09, the lowest level since April 28, 1933, according to the Center for Research in Security Prices at the University of Chicago. The shares closed Tuesday's session at $1.15, down 29 cents, or 20.1%.
Federal Reserve Chairman Ben Bernanke said in a speech Monday night that government "stress tests" of how 19 major banks would endure a sharp downturn in the economy already appear to be helping banks gain access to private capital, a key element in economic recovery.
Companies continued to announce plans to tap the U.S. equity market for fresh capital. Ford Motor Co. (F) announced a registered public offering of 300 million shares of its common stock.
Bank of New York Mellon plans to sell $1 billion of its common stock to the public.
SL Green Realty said it has commenced a public offering of 14.5 million shares of common stock. It also plans to reduce the quarterly dividend on its common stock from $0.375 to $0.10 after completion of the offering.
