Stocks Mixed on Inflation Worries

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Stocks ended mixed Tuesday as gains were limited by investors’ anxiety over corporate profits, inflation and rising crude prices.


The Dow Jones Industrial Average rose 14.41, or 0.1 percent, to 10,253.17. The Standard & Poor’s 500 Index fell 2.46, or 0.2 percent, to 1,184.87. The Nasdaq Composite Index fell 17.83, or 0.9 percent, to 2,061.09.


The Dow was bolstered by International Business Machines Corp., which rose 2.4 percent to $83.19 on the New York Stock Exchange after Credit Suisse First Boston raised the company’s stock rating. Citigroup upgraded IBM on Monday.


But a drop in semiconductor stocks cast a pall over the Nasdaq for a second consecutive day. Locally, shares of Westlake Village-based discrete semiconductor manufacturer Diodes Inc. fell 2 percent to $35.54 and Camarillo-based Semtech Corp. sunk 2.6 percent to $15.15.


International Rectifier Corp. followed suit but had its own problems as its shares plunged as much as 19 percent to a new one-year low Tuesday after the company warned that first-quarter results would come up short of previous guidance due to an unexpected shift in the mix of product orders. The El Segundo-based maker of power semiconductors fell 15.6 percent to settle at $34.37. The company’s stock was also was downgraded to “underperform” from “neutral” by analyst Ambrish Srivastava at Harris Nesbitt.


And the rising price of sweet light crude settled up $1.75 to $63.60 on the New York Mercantile Exchange, stoking Wall Street’s concerns about everything from inflationary pressures and recession to corporate earnings and consumer spending.


Among other local movers, shares of Edison International rose 1.4 percent to $44.90 after the company’s stock rating was raised to “buy” from “neutral” by analyst Shelby Tucker at Banc of America. The 12-month price target was set at $51 per share.


And DirecTV Group Inc. slipped 2.2 percent to $14.39 after the El Segundo-based satellite provider’s No. 2 rival, EchoStar Communications Corp., announced it is introducing a handheld video player that goes on sale today at some retailers. The PocketDish device may give EchoStar a source of revenue outside the television-subscription market, analysts said.

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