U.S. Share Prices Little Changed Amid Caution on Brazil

Strategic Insights -

U.S. share prices showed little movement on Tuesday as profit taking and caution over Brazil's financial problems dominated the session. The Dow Jones Industrials surged by 14.67 points to 9,355.22 as the technology sector led shares back into positive territory. However, dealers remained uncertain about Brazil's economic future, citing its ongoing financial problems and the devaluation of its currency. A major merger in the technology sector, between Excite and At Home Corp, also influenced the market, with Excite shares rising by 42 1/2 points to 110.

Key Takeaways:

  • The Dow Jones Industrials rose 14.67 points to 9,355.22 on the New York Stock Exchange, driven by strength in the technology sector.
  • The S&P 500 index also rose, up 7.63 points to 1,250.89.
  • Breadth was narrow, with NYSE advancers leading decliners 1,507 to 1,499.
  • A mega Internet merger between Excite and At Home Corp was announced, with Excite's shares rising 42 1/2 points to 110.
  • Technology shares were bolstered, with other companies such as Yahoo and Infoseek also rising.
  • AT&T was expected to become a more substantial Internet player following the merger.
  • Microsoft posted better-than-expected quarterly diluted earnings of $0.73 per share, but lowered expectations for the coming quarter.
  • Financial shares fell despite several banks posting better-than-expected quarterly earnings.

Statistics:

  • The Dow Jones Industrials rose 14.67 points to 9,355.22.
  • The S&P 500 index rose 7.63 points to 1,250.89.
  • NYSE volume was 782 million shares.
  • Breadth was narrow, with NYSE advancers leading decliners 1,507 to 1,499.
  • Excite's shares rose 42 1/2 points to 110.
  • At Home's shares rose 13 3/8 points to 115 3/8.
  • Microsoft's quarterly diluted earnings were $0.73 per share, a 74% increase from $0.42 in the previous year.

Sources:

  • Market News International
  • Ehrenkrantz King Nussbaum