US stocks ended slightly higher on Tuesday as more US companies reported strong quarterly profits, but investors were shaken by the discovery of the poison ricin in a US Senate office late Monday evening.
Cisco Systems Inc shares fell after the bell as the technology bellwether reported lower quarterly profit than a year ago. The disappointing numbers from Cisco sent futures prices on the tech-dominated Nasdaq 100 lower and may weigh on stocks when trading resumes on Wednesday.
During regular trade, General Motors Corp kept a lid on the Dow's gains. Shares of GM and rival carmaker Ford Motor Co both fell for the sixth straight session on weak January sales and concerns that higher interest rates will dampen future sales by making financing deals less attractive.
"There's a little bit of nervousness over the ricin holding people back," said Frederic Dickson, market strategist at fund firm D.A. Davidson & Co. "The essentially good earnings news has been offset by a reminder that there's a still a war on terrorism going on and that bad things can happen."
Some investors also fretted about the prospects of a close presidential election later this year, Dickson said, as Democrats in seven states voted for a challenger to President George W. Bush. Market watchers say front-runner John Kerry would pose the greatest threat to Bush.
The Dow Jones industrial average finished up 6.00 points, or 0.06 percent, at 10,505.18. The Standard & Poor's 500 Index edged up 0.77 of a point, or 0.07 percent, at 1,136.03. The technology-focused Nasdaq Composite Index gained 3.06 points, or 0.15 percent, to close at 2,066.21, based on the latest available data.
In after-hours trading, Cisco shares fell to $25.35 on the Instinet electronic brokerage system from their Nasdaq close at $26.41. During regular trading, Cisco gained 21 cents.
Cisco, the world's largest maker of equipment that directs Internet traffic, posted a lower quarterly profit after an accounting charge, but said sales rose more than expected as corporate customers boosted technology spending. Shares of Cisco's competitors Juniper Networks Inc and Broadcom Corp also fell after the bell. Futures contracts on the Nasdaq 100 were trading off by 7 points, or about 0.5 percent, below fair value, suggesting a slight sell-off in technology stocks at Wednesday's open. S&P 500 futures were also trading lower.
Trading during the regular session was moderate, with 1.5 billion shares changing hands on the New York Stock Exchange, just above the 1.4 billion daily average for last year. About 1.8 billion shares were traded on Nasdaq, in line with the daily average last year.
Advancers outnumbered decliners by about 17 to 16 on the NYSE, while decliners outpaced gainers by about 17 to 15 on Nasdaq.
US Senate leaders confirmed that a powder found in the office mailroom of Senate Republican Leader Bill Frist was the deadly poison ricin. The powder, analysed in a series of field and laboratory tests, was discovered on Monday. No one has been injured in the incident, Frist told a news conference.
GM was among the Dow's biggest percentage losers, dropping 84 cents, or 1.7 percent, to $47.86 after it said its US vehicle sales were unexpectedly weak in January. GM's January sales fell 2 percent from a year ago. Ford shares fell 23 cents, or 1.7 percent, to $13.72 after it also said January sales fell.
The auto industry's overall US January sales failed to live up to expectations for a strong showing after bitterly cold weather kept consumers away from dealerships in many parts of the country.
The latest batch of earnings from Tyco International Ltd and other companies was positive.
Tyco said quarterly net income surged 23 percent, beating the company's own forecasts, on higher sales of pharmaceuticals, electronic connectors and cable gear.
Tyco rose 70 cents, or 2.6 percent, to $27.80.
Colgate-Palmolive Co reported higher fourth-quarter profit as the weak dollar and a gain from the sale of European laundry detergent brands offset declines in the United States.
Colgate rose $1.51, or 3 percent, to $51.85.
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