Friday, February 23, 2007

Ominous Iran news tones down tech rally

Wall Street turned in mixed results Thursday as Iran's refusal to suspend uranium enrichment rattled investors and blunted a tech rally spurred by good news from chip maker Analog Devices Inc.

Investors were uneasy after a U.N. official said Iran did not agree to Security Council demands to end its nuclear plans.

Also hurting stocks was a U.S. government report that showed a larger-than-expected drop in gasoline and heating oil inventories, causing crude prices to bound above $60 a barrel.

This chilled the mood among investors who at first were encouraged by upbeat corporate announcements and a rally in foreign stock markets. Strength among semiconductor stocks drove the Nasdaq composite index to six-year highs.

Analog Devices Inc., which gave an optimistic outlook about improving business conditions, drove chip stocks. Investors also were encouraged about takeover activity this year after Whole Foods Market Inc. said it will buy Boulder-based rival Wild Oats Markets Inc..

The Dow Jones industrial average fell 52.39, or 0.41 percent, to 12,686.02. Broader stock indicators were mixed. The Standard & Poor's 500 index was down 1.25, or 0.09 percent, at 1,456.38. The Nasdaq rose 6.52, or 0.26 percent, to 2,524.94.

source news : rockymountainnews.com

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