Financial markets remained tense Friday after efforts to approve a $700 billion federal banking bailout ran into opposition from Republican...
NEW YORK — Financial markets remained tense Friday after efforts to approve a $700 billion federal banking bailout ran into opposition from Republican lawmakers. Stocks ended mixed, with big financial companies lifting the Dow Jones industrial average, but worries about smaller banks and parts of the technology sector taking much of the market lower.
The Dow Jones industrials closed up 121.07 at 11,143.13, after having fallen as much as 152 points early in the session.
Microsoft, one of the 30 Dow stocks, advanced 79 cents to close at $27.40. Boeing, also a Dow stock, gained 90 cents at $58.32
The Standard & Poor’s 500 index ended up 4.09 at 1,213.27, and the technology-heavy Nasdaq composite index fell 3.23 to 2,183.34.
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Investors turned cautious as the Bush administration’s efforts to come up with a rescue package faced setbacks.
“I think the markets are on pause trying to figure out where this is going to go. Congress is still there,” said Mark Coffelt, portfolio manager at Empiric Funds in Austin, Texas. “Right now everyone is a little bit shellshocked.”
Credit markets remained strained, though they showed improvement. The yield on the 3-month Treasury bill, considered the safest short-term investment, rose to 0.87 percent from 0.72 percent late Thursday. The lower the yield on a T-bill, the more desperation there is in the market; investors are at times willing to take the slimmest returns to preserve their principal.
Stocks declined unevenly, with technology shares falling sharply. after Research In Motion warned that its gross margins would contract in the current quarter because of the costs for producing three new BlackBerry models. The stock fell $26.77, or 27 percent, to close at $70.76.
Light, sweet crude for November delivery fell $2.70 to settle at $105.32 on the New York Mercantile Exchange, after earlier dipping as low as $104.25. Crude rose $2.29 to settle at $108.02 on Wednesday.