Wall Street report: Friday close
STOCKS closed mixed as investors' enthusiasm about advances in Iraq was muted by a weak employment report and speculation that Saddam Hussein was still alive.
The Dow Jones Industrial Average closed up 36.77 points, or 0.5%, at 8277.15. Tech shares sagged on an earnings warning from software maker PeopleSoft, with the Nasdaq falling 13.07, or 0.9%, to 1383.51.
Analysts said trading was choppy as investors made quick bets about the war's prospects. But most were choosing to sit on the sidelines, wary of making major purchases before the weekend. 'A conflicting news day is leading to a conflicted market,' said Stephen Massocca, president of Pacific Growth Equities. 'We have continuing good news coming out of Iraq. But on the other side, we have disappointing employment numbers coupled with other negative economic news.'
US-led forces edged closer to Baghdad after seizing control of Saddam International Airport. But stocks trimmed early gains after Iraqi television showed Saddam calling on his people to fight back, dampening rumours that he might be wounded or dead. 'People are a little more fearful about what might hit over the weekend,' said Ned Riley, chief investment strategist at State Street Global Advisors.
A Labour Department report showed companies slashed 108,000 jobs in March, more than analysts' estimates of about 40,000 cuts. The overall civilian unemployment rate held steady at 5.8%.
PeopleSoft ranked among the most active shares on Nasdaq and skidded $1.52 to $14.98. The company warned its first-quarter earnings and revenues would fall short of estimates as the war in Iraq hit an already weakened economy.
Affymetrix fell $9.67to $18.33 after the maker of gene chips lowered its first-quarter earnings estimates, blaming a slowdown in capital spending. Cigarette group Altria declined $1.40 to $28.30 after the Illinois Legislature rejected a plan to cap the amount its Philip Morris tobacco unit has to deposit to appeal legal verdicts.
