Dow Rises 17 but Nasdaq Index Falls in Tech Sell-Off
NEW YORK, Jan. 3ÛÓBlue-chip stocks rose today as investors responded to concerns about the economy by seeking less risky issues. But a sell-off in technology shares sacked the Nasdaq Stock Market</br></br>The Dow Jones industrial average rose 16.62 points to finish at 5194.07. Advancing issues outnumbered declining ones by nearly 5 to 3 on the New York Stock Exchange, and NYSE trading volume grew to 469.2 million shares from TuesdayÛªs 364.3 million.</br></br>Most broad-market indexes were higher, but the technology-heavy Nasdaq composite index fell 12.39 points, to 1046.26.</br></br>ÛÏItÛªs a vicious, two-tier market,Û said Larry Wachtel, an analyst for Prudential Securities. ÛÏIf youÛªre in a handful of blue chips, youÛªre sharing in another great day. If youÛªre in technology, youÛªre getting whacked around."</br></br>The NasdaqÛªs decline marked a continuation of TuesdayÛªs sell-off in technology stocks. Semiconductor issues fell after PaineWebber downgraded five of them, saying that despite strong industry trends, those stocks have a big downside risk. Alex. Brown & Sons also downgraded three technology stocks.