The S&P 500 and the Nasdaq fell in choppy trade on Wednesday, as pessimism about the US economy mounted after Intel Corp, the world's largest chip maker, posted earnings and a profit forecast that disappointed investors.
But the Dow edged higher as J.P. Morgan Chase & Co, the No 3 US bank, provided comparative relief from the gloom cast by Citigroup's record quarterly loss on Tuesday, with results that showed some banks can still make a profit despite troubles in the credit market.
"There's still a lot of pessimism out there. A lot of people are talking about recession and that the credit crisis is spreading. Plus some of the early earnings reports, like Intel, disappointed investors," said Giri Cherukuri, head trader at OakBrook Investments LLC, which oversees $1.3 billion in Lisle, Illinois.
The Dow Jones industrial average was up 13.17 points, or 0.11 percent, at 12,514.28. The Standard & Poor's 500 Index was down 3.44 points, or 0.25 percent, at 1,377.51. The Nasdaq Composite Index was down 21.36 points, or 0.88 percent, at 2,396.23.
Shares of Intel dropped 11.6 percent to $20.05 on the Nasdaq. Other major tech shares trading sharply lower were Apple Inc, down 4 percent to $162, and Blackberry maker Research in Motion Ltd, down 2.4 percent to $88.88. J.P. Morgan shares rose 8.4 percent at $42.50.
Comments
Comments are closed.