Tuesday, May 06, 2003

Dow Up 28, Loses Gains on Fed Statement

Tuesday May 6, 3:37 pm ET, By Hope Yen, AP Business Writer, Stocks Lose Some Gains on Cautionary Federal Reserve Statement; Dow Up Is 28, Nasdaq Is Up 13 NEW YORK (AP) -- Wall Street moved higher on another spate of encouraging earnings Tuesday but gave up some of its gains after a cautionary statement about the economy by the Federal Reserve. Blue-chip stocks rose as much as 109 points but fell back after the Fed, which left interest rates unchanged, said the economy still faces risks of weakening economic activity.

By late afternoon, the Dow Jones industrial average was up 28.21, or 0.3 percent, at 8,559.78, having fallen 51 points Monday. The broader market was also higher. The Nasdaq composite index increased 13.10, or 0.9 percent, to 1,517.14. The Standard & Poor's 500 index rose 5.16, or 0.6 percent, to 931.71. "The best scenario for investors would be positive statements that the economy is picking up, investment is picking up, and risks are toward the upside with a possible rate increase," said Arnie Holzer, senior investment strategist for Deutsche Asset Management Americas. "But clearly we're not at that level yet." The Fed unanimously voted Tuesday to hold the federal funds rate steady at 1.25 percent, but policymakers left open the possibility of additional cuts in the future if the economy were to backslide ...

Cisco Systems, a leading maker of networking equipment, rose 44 cents to $15.83 ahead of its earnings report set to be released after the close of markets, >>Full story...

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