NewsMine — economy — united-states — 2003 — 2003-sept-oct — Viewing Item

Stocks slip bonds rise Original Source Link: (May no longer be active)    http://www.forbes.com/business/newswire/2003/10/17/rtr1114038.html http://www.forbes.com/business/newswire/2003/10/17/rtr1114038.html WRAPUP 1-U.S. stocks slip on profit outlook, bonds rise Reuters, 10.17.03, 5:40 PM ET By Kenneth Barry NEW YORK, Oct 17 (Reuters) - U.S. stocks fell on Friday on disappointing profit news although two stock indexes eked out gains for the week, while Treasury bonds rose as investors were lured by attractive yields. In other markets, the dollar, gold and crude oil fell. Stocks slumped on business forecasts from companies like online auctioneer Ebay Inc., (nasdaq: EBAY - news - people) which spurred investors to lock in gains from this week's rise to the highs of the year. Ebay was one of the biggest losers in the S&P 500 after it disappointed investors with a lower-than-expected 2004 profit forecast. Its shares fell $2.64, or 4.6 percent, to $54.86. Network computer maker Sun Microsystems Inc. (nasdaq: SUNW - news - people) posted a wider quarterly loss as weak demand for its servers and tough competition caused sales to fall for the 10th straight quarter. Shares dropped 7 cents, or 1.9 percent, to $3.56. The blue-chip Dow Jones industrials <.DJI> lost 69.93 points, or 0.71 percent, to 9,721.79. The broad Standard & Poor's 500 <.SPX> fell 10.75 points, or 1.02 percent, to 1,039.32. The technology-packed Nasdaq Composite Index <.IXIC> dropped 37.78 points, or 1.94 percent, to 1,912.36. For the week, the Dow rose 0.49 percent and the S&P 500 added 0.12 percent, notching their third straight week of gains. The Nasdaq eased 0.15 percent for the week after two consecutive up weeks. Returns on U.S. Treasuries have improved significantly after more than two weeks of heavy selling. The sharp move created an opportunity for bargain-hunting traders to start dipping their toes back into bonds. "Yields have risen to levels where buyers looking for yields are willing to take a risk and buy," said Gary Thayer, chief economist at A.G. Edwards & Sons in St. Louis, Missouri. At 5 p.m., the 10-year note had edged up 18/32 in price, leaving its yield at 4.39 percent from 4.46 percent late on Thursday. The 30-year bond rose 24/32, its yield easing to 5.25 percent from 5.29 percent. The dollar retreated as fairly solid economic data failed to meet the market's lofty expectations. This left the U.S. currency vulnerable to some squaring of long positions when the dollar breached some crucial technical levels. In late afternoon, the euro was up 0.76 percent against the dollar at $1.1680 , rallying from a low of $1.1550. The dollar slipped 0.45 percent against the Japanese currency to 109.37 yen . COMEX gold ended with a small loss after stumbling to a seven-week low as growing confidence about U.S. economic recovery briefly lifted the dollar and eroded interest in bullion as a safe haven. After dropping as much as $6.70, December gold <0#GC:> steadied as the dollar rally fizzled, ending $1 lower at $372.20 an ounce. NYMEX crude oil futures ended 2.7 percent lower as a large rise in crude inventories last week eased concerns over a winter supply crunch. NYMEX November crude settled 86 cents lower at $30.68 a barrel after earlier falling to a session low of $29.90, the lowest in seven sessions. Japan's major stock indexes closed at 16-month highs, thanks to gains in domestic-oriented issues. The Nikkei 225-stock average finished up 0.12 percent or 12.74 points at 11,037.89, its highest close since June 13 last year and up on the week by 251.85 points. Britain's top shares sealed their third straight weekly rise with a slim gain. The FTSE 100 share index closed up 4.3 points, or 0.1 percent, at 4,344.0, to end up 0.8 percent on the week. Copyright 2003, Reuters News Service

2 years in a row more in poverty Asian debt withdrawal threat to us deficit { September 7 2003 } Asian unpegging crucify us { October 3 2003 } Bush bid weaken dollar against asia { September 24 2003 } Bush cuts schools highways { September 10 2003 } Bush priorities under scrutiny Bush takes credit economic upturn { September 1 2003 } China brings us export resictions into trade debate Deficit not manageable { September 18 2003 } Deflation still worries federal reserve { September 17 2003 } Deflation will continue for years { September 10 2003 } Disappointed earnings bonds rally Dollar gains on euro { September 2 2003 } Dollar over valued { September 18 2003 } Dollar plunges 3 year low Dollar tumbles low against euro { October 8 2003 } Economy expands fastest since 1984 no jobs { October 31 2003 } Fed holds rates warns on deflation Firms dont buy rebound Firms still slashing jobs Foreign investors fear weak dollar { September 22 2003 } Gold hits 7 year high { September 25 2003 } Gold records as tumbling dollar { September 10 2003 } Government claims unemployment stabilizing { October 3 2003 } Grocery workers 3rd day strike san diego { October 14 2003 } Job loss like great depression Jobless claims lowest eight months { October 9 2003 } La transit strike may strand 500 thousand { October 14 2003 } Mass august layoffs { September 26 2003 } Monthly costs iraq approach vietnam Poor gained 1 3m in 2002 { September 3 2003 } States risk big losses bond funding pensions { October 12 2003 } Stocks at 14 month high { September 2 2003 } Stocks fall economy worries { September 30 2003 } Stocks lower after production data Stocks rebound hopes intact { October 1 2003 } Stocks rise on upbeat analyst reports { September 8 2003 } Stocks slip bonds rise Trade gap bring down dollar warns imf { September 19 2003 } Trade gap could bring down dollar { September 19 2003 } Uninsured increases 2 4 million last year { September 30 2003 } Us bonds face gloomier future as selling continues { September 7 2003 } Us closes last levis manufacturer { September 26 2003 } Us losing millions manufacturing jobs { September 4 2003 } Weak dollar raises stocks Files Listed: 45

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