Stocks fluctuate in narrow range after sell-off
NEW YORK — Stocks ended mixed but well off their lows Tuesday as early concerns about a barrage of stock offerings eased and rising oil prices lifted energy stocks. The Dow Jones industrials rose 50 points while broader indicators fell.
Investors turned to defensive stocks, such as drug and food makers, which tend to hold up better in economic downturns. Pfizer rose 5.5%, and Coca Cola climbed 3.9%.
The Dow rose 50.34 points, or 0.6%, to 8,469.11 after falling 155 points on Monday. The Standard & Poor’s 500 index slipped 0.89 of a point, or 0.1%, to 908.35, and the Nasdaq fell 15.32 points, or 0.9%, to 1,715.92.
The market was in negative territory most of the session as some traders worried that the economic recovery wouldn’t be as brisk as hoped and that recently announced stock offerings would hurt the value of existing shares.
Ford Motor plunged 18% after announcing a stock offering, while some banks planning to sell stock fell for a second day. Regions Financial sank 9.6%, and SunTrust Banks dropped 12%.
How well the market can absorb a wave of new shares will be a test of its health, some analysts say. TrimTabs Investment Research estimates that companies will offer at least $50 billion in new stock this month. That would be the highest since May 2001.
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