Blue-chips eke out gains as technology stocks slide

Dow Jones Industrial Average: 8,745.18 (+33.16)Blue-chip stocks eked out gains yesterday, and the broad market logged its third up week in a row after a seesaw session in which some investors snapped up bargains but others stayed sidelined because of worries about the strength of the economy.

Technology stocks, however, eased as Emulex lost $8.25, nearly 35 per cent, to end at $15.36 after the data storage equipment maker said it expects sales to be weaker than analysts expected. Investors are fretting that a sluggish economy will weigh on corporate profits, which are already on shaky ground. Wall Street also mulled the Federal Reserve's moves next week.

For the week, the Dow rose 5.2 per cent, S&P 500 was up 5.1 per cent and Nasdaq climbed 4.7 per cent. For the Dow and S&P 500, it was the third winning week in a row, and for the Nasdaq it was the first up week after five straight losers.

Stocks have gained this week, in part, on hopes the Federal Reserve will take another whack at interest rates to lift the economy after 11 cuts last year took rates to 40-year lows. - (Reuters)