Dow struggles higherBlue-chip average turns positive, other major gauges trim declines; yet worries about global markets, yen, subprime lending remain in place.NEW YORK (CNNMoney.com) -- Stocks fought back Monday morning, with blue chips leading the way, as investors attempted to set aside worries about a thrashing in global markets following the worst week on Wall Street in four years. The Dow Jones industrial average (Charts) was up a few points, after having fallen in the first 30 minutes of trade. The broader S&P 500 (Charts) index and the tech-fueled Nasdaq (Charts) composite both lost a few points. 
Stocks slumped Friday at the end of the worst week on Wall Street since early 2003, as worries about growth at home and abroad caused investors to stage a mass exodus. That selling extended to the start of Monday's session. However, declines eased, with investors scooping up select stocks that had gotten battered last week. Among blue-chip gainers, two out of three Dow stocks rose, led by Honeywell (up $0.50 to $46.41, Charts), Hewlett-Packard (up $0.58 to $39.25, Charts) and Merck (up $0.49 to $44.68, Charts). Yet broader gains were limited by a selloff in commodities and commodity stocks, and the impact of overseas markets. Stocks in Japan - and elsewhere in Asia - slumped as investors continued to pour money into the yen. The yen has been surging over the last week as investors continue to close out carry trades, or bets on riskier currencies, bought by borrowing in the currencies of countries with low interest rates, such as Japan. In currency trading, the dollar fell to a three-month low versus the yen. The dollar also rose versus the euro. European markets declined as well. Also in focus: revived worries about subprime mortgage lending woes. HSBC (up $0.71 to $86.98, Charts) reported a record gain in 2006, however, it also said it took $10.6 billion in losses on bad debts due to problems in its U.S. mortgage lending. New Century Financial (down $7.67 to $6.98, Charts) shares slumped 60 percent on news that prosecutors have started a criminal probe into its securities trading. Following the news, several analysts speculated that the company could face bankruptcy or possible liquidation. In other news, Advanced Micro Devices (down $0.24 to $13.94, Charts) slipped after the chipmaker said that first-quarter revenue won't meet forecasts. Market breadth was negative. On the New York Stock Exchange, losers beat winners two to one on volume of 450 million shares. On the Nasdaq, decliners topped advancers nine to five on volume of 615 million shares. Investors also eyed the February Institute for Supply Management index on the services sector of the economy. The index fell to 54.3 from 59.0 in January. Economists surveyed by Briefing.com thought it would fall to 57.5 Treasury prices were little changed, with the yield at 4.50 percent. U.S. light crude oil for April delivery fell $1.11 to $60.53 a barrel after the slide in global markets spread to commodities. COMEX gold for April delivery fell $6.70 to $637.40 an ounce. |
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