NEW YORK - US tech stocks fell on Tuesday, led by a drop in Texas Instruments, after a disappointing outlook by the No.1 maker of chips for cell phones raised concerns over the outlook for corporate profits.
Altria Group weighed on the Dow and Standard & Poor's 500 stock gauges,
sliding 0.4 per cent to US$79.82, after Kraft Foods, which is majority-owned by Altria, posted lower-than-expected sales growth. Kraft fell 2.6 per cent to US$35.36.
Investors were also cautious as Federal Reserve policy makers gathered for a two-day meeting that could yield indications about future interest rate moves. The announcement on the Fed's deliberations is expected on Wednesday afternoon.
"Investors have been a little wary of adding to stocks in a group such as telecommunication, where the outlook is not so bright," said Steve Neimeth, portfolio manager for AIG SunAmerica Asset Management in Jersey City, New Jersey.
The Dow Jones industrial average finished up 10.97 points, or 0.09 per cent, at 12,127.88, a record closing high. The Standard & Poor's 500 Index closed up 0.36 points, or 0.03 per cent, at 1,377.38. The Nasdaq Composite Index ended down 10.72 points, or 0.46 per cent, at 2,344.84.
Earlier in the session the Dow hit a fresh intraday record peak of 12,133.80.
Texas Instruments' shares fell 4.3 per cent to US$30.52. On Monday, the company forecast fourth-quarter revenue below average Wall Street estimates.
The drop in Texas Instruments sent shares of cell-phone equipment makers lower, weighing on Nasdaq. Qualcomm slid 3.6 per cent to US$36.71 and Broadcom fell 2.1 per cent to US$27.
Shares of Amgen, the world's largest biotechnology company, however, rose 2.1 per cent to US$74.94 after its quarterly results late Monday topped expectations and it raised its full-year earnings forecast.
Among other gainers, AK Steel Holding reported a third-quarter profit on Tuesday, helped by higher steel prices.
AK Steel rose 3.7 per cent to US$15.56. Other steel shares also rose, with Nucor jumping nearly 12 per cent to US$61.58 and US Steel Corp. up 5.4 per cent to US$70.19.
Overall, profits for Standard & Poor's 500 companies are expected to grow nearly 15 per cent in the third quarter, with more than 70 per cent of companies that have reported results so far beating estimates, according to Reuters Estimates.
Volume was active on the NYSE, where about 1.68 billion shares changed hands, above last year's daily average of 1.61 billion. On the Nasdaq, about 1.85 billion shares were traded, above last year's daily average of 1.80 billion.
Gainers outnumbered decliners on the Big Board by about 5 to 4. On the Nasdaq, about 7 stocks fell for every 5 that rose.
- REUTERS
NEW YORK - US tech stocks fell on Tuesday, led by a drop in Texas Instruments, after a disappointing outlook by the No.1 maker of chips for cell phones raised concerns over the outlook for corporate profits.
Altria Group weighed on the Dow and Standard & Poor's 500 stock gauges,
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