Economic
Growth Report Pulls Down Dow 32
By MICHAEL J. MARTINEZ
The Associated Press
Friday, January 30, 2004; 10:51 AM NEW
YORK - Stocks fell in early trading Friday after a new government report cast
more doubt on the pace of the nation's economic recovery.
In early trading, the Dow Jones industrial average was down 32.29, or 0.3 percent,
at 10,478.00. Broader stock indicators were mixed. The Standard & Poor's 500
index was down 1.75, or 0.2 percent, at 1,132.36, and the Nasdaq composite index
was up 7.85, or 0.4 percent, at 2,076.08. While the 4 percent rise in the
gross domestic product for the fourth quarter shows an economy continuing to grow,
it represented a slowdown from the 8.2 percent growth in the third quarter. But
more significantly, it was also lower than the 4.8 percent growth analysts expected.
The report provided another muddled sign on the economy. Jobs data has
been disappointing, and Wall Street will be looking to next week's January payroll
data for better news. The Walt Disney Co. fell 56 cents to $23.89 after
a distribution deal between the entertainment giant and Pixar film studios, maker
of the popular films "Toy Story" and "Finding Nemo," was not renewed. Pixar, now
free to find other distributors, was up $2.64 to $66.84. ChevronTexaco
Corp. was down 80 cents to $86.51 despite reporting a 91 percent jump in fourth-quarter
profits. Wendy's International Inc. fell 11 cents to $39.59 after reporting
a 28 percent rise in profits, beating analysts' expectations by 2 cents per share.
Struggling computer maker Gateway Inc. rose 40 cents to $4.49 after it
met expectations by posting an operating loss of 15 cents per share for the fourth
quarter late Wednesday. The company also announced it would buy privately held
eMachines Inc. for $235 million, creating the nation's third-largest personal
computer maker. General Motors Corp. fell $1.67 to $49.04 after Goldman
Sachs cut its rating on the stock. Telephone equipment maker Nortel Networks
Corp. posted its first annual profit since 1997, sending shares $1.45 higher to
$8.03. Declining issues outnumbered advancers by a 7-to-5 ratio on the
New York Stock Exchange. Volume came to 199.15 million shares, compared to 208.80
million at the same point Thursday. The Russell 2000 index of smaller companies
was up 1.45, or 0.2 percent, at 581.31. Overseas, Japan's Nikkei stock
average was flat. In afternoon trading, Britain's FTSE 100 was up 0.1 percent,
Germany's DAX index fell 0.5 percent, and France's CAC-40 was flat. Continue with: | 
