Wall Street: Friday close

13 April 2012

A sell-off in tech stocks and buying in consumer products left Wall Street little changed on Friday as investors tried to reconcile conflicting economic data.

The major indexes ended February mixed, stalling an 11-month rally, and the Nasdaq composite index suffered its first monthly decline since September.

The day's trading continued the listless pattern that marked Wall Street's performance throughout February. Strong, early gains were eroded by profit-taking on tech stocks, but the markets recovered slightly by the afternoon.

'We saw some selling in semiconductors that took everything with it, but there's no real reason behind it,' said one leading analyst. 'It's a quirky kind of market.' He added that until economic data provides a stronger indication of the pace of the recovery, the wavering market will likely continue. The government's jobs creation report expected next Friday could move the markets again, analysts said.

On Friday, traders were pleased by the Commerce Department's report that the economy grew by an unexpected 4.1 percent annual rate in the last quarter of 2003. The government's latest data on the gross domestic product - the broadest measure of the economy's health - beat the 3.8% growth forecast by economists. GDP reflects the value of all goods and services produced within the United States.

Initially, Wall Street did not seem dissuaded by the University of Michigan's February consumer confidence report, which slid to 94.4, versus 103.8 in January. The reading was in line with Wall Street expectations, however.

'If you look at it historically, there's a real disconnect between what consumers tell you versus what they actually do,' said equity strategist Scott Wren. 'Consumers are continuing to spend money in this economy.'

The Dow Jones industrial average gained 3.78, or 0.04%, to 10,583.92. The Dow ended the week 0.3 percent lower, its second straight weekly decline.

The technology-focused Nasdaq composite index lost 2.75, or 0.1%, at 2,029.82, finishing the week 0.4% lower, the sixth straight down week for the index.

PeopleSoft lost 20 cents to $21.58 on news that the Justice Department is seeking to block a hostile $9.4 billion bid by its larger rival, Oracle. The government's suit contends the merger would stifle competition in the business software market. Oracle slipped 41 cents to $12.87.

Luxury hotel chain Four Seasons Hotels dropped $1.70 to $54. Its fourth-quarter earnings rose 53%, but said revenues were down slightly due to terrorism and Sars concerns. The company gave an upbeat outlook for 2004, however.

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