Stocks ended narrowly mixed Monday, as optimism about technology darling Apple was offset by continuing worries about housing and mortgage lending.
The Dow Jones industrial average added 14.47 points, to 13,127.85. Oak Brook-based McDonald’s was the biggest percentage gainer in the Dow. Alcoa posted the biggest percentage loss.
Apple shares climbed nearly 4 percent. The company said sold its millionth iPhone, less than three months after launching the device.
But the technology-heavy Nasdaq composite index posted a slight loss for the day. Losing stocks outnumbered winners on the New York Stock Exchange and Nasdaq market.
Mortgage lenders Countrywide Financial and Washington Mutual lost ground, as the subprime lending debacle continued to weigh on the companies’ profit outlooks.
Treasury securities rallied strongly in a second day of trading after Friday’s news that the U.S. economy lost jobs in August. The dollar hit a 15-year low against major currencies, as traders bet on lower U.S. interest rates.
Oil prices rose in futures trading ahead of a scheduled meeting of OPEC oil ministers Tuesday. Crude oil for October delivery rose 79 cents a barrel, to $77.49. But oil stocks eased, reflecting concerns about a sluggish economy.
LOCAL NEWS: Goldman Sachs boosted its price target on Schaumburg-based Motorola to $18 from $16. Goldman has a “neutral” investment rating on Motorola. Investment manager Dodge & Cox reported a 10.2 percent holding of Motorola’s stock. Nonetheless, shares eased 11 cents, to $17.02.
*Goldman Sachs upped its investment rating on Chicago-based real estate investment trust Equity Residential to “neutral” from “sell,” with a price target of $42. Shares added 1 cent, to $39.78.
TREASURY AUCTIONS: Interest rates dropped sharply at the Treasury’s auctions of 3- and 6-month bills, reflecting the August drop in jobs. The discount rate for 3-month bills was 3.80 percent, down from 4.35 percent at last week’s auction. The rate on 6-month bills was 4.02 percent, down from 4.38 percent last week.
The coupon-equivalent investment rates were 3.90 percent for 3-month bills and 4.17 percent for 6-month bills.