Stocks Mixed as Yields Decline; Asia Falls Again

U.S. stocks ended mixed for a second session Tuesday, even though bond yields eased.

In Asia early today, meanwhile, stock markets were sharply lower after Indonesian security forces killed at least six students at an anti-government rally in Jakarta on Tuesday.

Indonesia’s main stock index fell 3.9% in early trading, to 414, as the country’s currency, the rupiah, plunged to 9,850 to the dollar from 9,200 on Tuesday.

The economic crisis that has enveloped East Asia since last summer appears to be taking another turn for the worse. In South Korea early today, the main stock index fell to 344.47, an 11-year low that eclipsed the previous low of 350.68 set in December.

Hong Kong’s main stock index was down 2.9% to 9,556 early today, the lowest since January.

The Hong Kong Monetary Authority denied early rumors that it had instructed banks to stop lending money to speculators betting on a devaluation of the Hong Kong dollar. Rumors are rife again that Hong Kong will devalue--which would deepen Asia’s crisis.

On Wall Street, Tuesday’s session was fairly subdued. The Dow Jones industrial average rose 70.25 points, or 0.8%, to 9,161.77, but for a second straight session more stocks fell than rose.

Losers topped winners by 16 to 14 on the New York Stock Exchange and by 23 to 19 on Nasdaq.

Still, most major stock indexes were up modestly. The Nasdaq composite gained 0.7% to 1,860.16 on strength in some tech issues.

The bond market cooperated, as the ongoing seesaw in yields this time was a downswing: The yield on the bellwether 30-year Treasury bond fell to 5.97% from 6.03% on Monday.

The bond market was helped by better-than-expected demand at the Treasury’s auction of new three-year notes. The notes carried an average yield of 5.63%.

A strong dollar supported bonds. The dollar jumped to 134.07 yen, up from 132.75 on Monday, as Asia’s growing troubles sent money fleeing into safer U.S. securities.

The bond market will be tested today as the government reports wholesale price inflation for April. On Thursday the government reports on April consumer inflation.

Among Tuesday’s highlights:

* Blue-chip stocks gained as some investors looking to put money to work simply sought out well-known names, traders said. In the Dow, American Express rose $2.13 to $103.38, GM gained $2.25 to $73.13 and McDonald’s added $1.50 to $62.94.

* Major retail stocks were broadly higher, benefiting from consumers’ continued strong spending. Wal-Mart surged $1.63 to $52.75 on a robust profit report. (Story, D3) Other retailers rising included Sears, up $2.56 to $61.44; Nordstrom, up $4 to $68.13 on its profit report; and May Department Stores, up $2.19 to $64.38.

* Big-name tech issues attracting buyers included Intel, up $2.06 to $84.56, its highest since March 4; Dell, up $4 to $94.38; and Microsoft, up $1.44 to $85.69. Hewlett-Packard, one of the 30 Dow stocks, jumped $3.19 to $79.88 as analysts continued to recommend it.

* Among new stock issues, ad firm Young & Rubicam made its initial public offering at $25 a share. The stock jumped $3.06 to $28.06 on the NYSE. The ticker symbol is YNR.

* In the telecom arena, SBC Communications rebounded 63 cents to $39.44 after tumbling Monday on its $56-billion bid for Ameritech. Rival US West Communications fell $1 to $50.44.

Market Roundup, D10