Techs Hang on Ahead of Fed
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The Nasdaq barely held onto a small gain Tuesday as traders braced for what could turn out to be a pivotal Federal Reserve meeting.
The Fed is widely expected to cut interest rates by a quarter point on Wednesday, but some economists caution that the Fed may not cut rates at all and could signal that its rate cut campaign that began last summer is over.
With inflation and the weak dollar growing concerns and both problems exacerbated by rate cuts observers generally agree that the Fed could at least signal a break from further rate cuts in its policy statement tomorrow.
Facing that uncertainty and first-quarter GDP numbers in the morning stocks once again made little headway on Tuesday.
Yahoo was a big gainer, up more than 3% on reports that Microsoft could launch a proxy bid to acquire Yahoo as soon as Wednesday.
Corning was another standout, rising more than 3% on better than expected results and guidance, and Microchip was another earnings winner.
Rogers Communications climbed 4% on plans to bring Apple's iPhone to Canada. Apple rose on the news, but Research In Motion gained even more despite the new competition in its backyard.
Comscore jumped 12% on an upgrade. The company reports results on Thursday and has seen volatile swings lately.
Digi and TheStreet.com fell on their results.
The Nasdaq added 1 to 2426, the S&P lost 5 to 1390, and the Dow shed 40 to 12,831. Volume declined to 3.75 billion shares on the NYSE, and 1.78 billion on the Nasdaq. Decliners led by a 19-13 margin on the NYSE, and by a 16-11 margin on the Nasdaq. Upside volume was 41% on the NYSE, and 57% on the Nasdaq. New highs-new lows were 34-77 on the NYSE, and 50-94 on the Nasdaq.