Dow stays above key index level of 11,000

Submitted by Share Trading on 11 January, 2006 - 08:36

US stocks bounced back from early losses and ended nearly flat overnight, with the Dow Jones Industrial Average holding above 11,000 as upbeat news from Apple Computer offset weak earnings from Alcoa.

The Dow blue-chip index, which fell more than 50 points in early trade, was off a fractional 0.88 point at 11,011.02 at the closing bell.

On Monday, the benchmark index closed above 11,000 for the first time since June 2001.

The Nasdaq composite index managed to eke out a gain of 0.06 per cent, or 1.39 points, to 2,320.08 and the broad-market Standard & Poor's 500 index fell a fractional 0.56 point to 1,289.59, based on preliminary closing figures.

Apple Computer was a strong performer after chief executive Steve Jobs said the company had revenue of $US5.7 billion ($7.57 billion) for the quarter ended in December, higher than the amount expected by analysts surveyed by Thomson First Call.

Jobs also said the company sold 14 million iPods and 1.25 million Macintosh computers during the quarter, and that the company's retail stores generated one billion dollars in sales.