Stocks were mixed Thursday after earnings reports from General Motors Corp. and Merck Co. Inc. pushed the Dow Jones industrial average up to a six-year high while the Nasdaq composite sagged along with eBay Inc.
According to preliminary calculations, the Dow rose 64.12, or 0.57 percent, to 11,342.89. That was the blue chips' best close since it settled at 11,351.30 on Jan. 20, 2000. The Standard & Poor's 500 index rose 1.53, or 0.12 percent, to 1,311.46, and the Nasdaq composite index fell 8.33, or 0.35 percent, to 2,362.55. Bonds were lower, with the yield on the 10-year Treasury note rising to 5.04 percent from 5.03 percent Wednesday. The U.S. dollar was higher against most major currencies. Gold prices were lower, retreating from 25-year highs.
City National Corp. dropped 8 percent to $71.50 after reporting after Wednesday's close that first-quarter earnings fell shy of analyst estimates as the bank reported slipping interest margins, slower-than-expected deposit growth and a drop in real estate construction loans. MannKind Corp., whose shares were cut to "neutral" from "buy" by UBS, fell 8.7 percent to $18.75. Iris International Inc. was down 5 percent to $11.75. East West Bancorp Inc. which was downgraded to "market perform'' from "outperform'' by
analyst James Abbott at Friedman, Billings, Ramsey & Co., lost 2 percent to $39.93.
Ryland Group Inc. closed up 1 percent to $69.39 after reporting first-quarter profit rose 44 percent, driven by a higher number of home closings and average closing prices. Intergroup Corp. gained 8 percent to $16.27. Arrowhead Research Corp. rose 9 percent to $6.50. Primedex Health Systems Inc. was up 9.5 percent to $1.15.
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