NEW YORK -- U.S. stocks ended mixed Wednesday as declines in Coca Cola Co. and semiconductor giant Intel led blue chips lower while the Nasdaq market recorded a modest rise amid gains in some biotechnology issues after a reassurance on patent policy from U.S. President Clinton.
Trading remained volatile -- with a three percent gain in the Nasdaq composite index being wiped out within half an hour during the afternoon -- as the wild fluctuations in the market's fortunes on Tuesday left many investors shell shocked, traders and analysts said.
"The Nasdaq has to be largely a story about emotions and psychology. It's not real stuff," said William Cheney, chief economist for John Hancock Funds.
"The market is overvalued. But at the same time, we're dealing with a population of investors who are either professionals who can't afford to get out of the market or novices who have never seen it go down," he said.
The Nasdaq Composite Index rose 0.49 percent, or 20.45 points, to 4,169.34, though it remains more than 17 percent below its record high last month.
The blue chip Dow Jones industrial average finished down 130.92 points, or 1.17 percent, at 11,033.92. Coca-Cola (KOLA), which on Tuesday narrowed a key growth target and unveiled a major write-down, fell 3-7/8 to 47-5/8.
Among major technology companies, Intel (INTC) lost 2-7/8 to 129-7/8 and Microsoft (MSFT) dipped 2-3/16 to 86-3/8 as the judge in its antitrust trial set May 24 for an expedited hearing on remedies in the case.
Biotechnology stocks surged, leading Nasdaq higher, after President Clinton said biotech companies that develop a commercial application should receive a patent. That followed his comments with U.K. Prime Minister Tony Blair in March that scientists worldwide should have free access to research on the mapping of human genes.
"I think (Clinton) was made aware that his earlier remarks had been taken negatively and were hurting (the industry)," said Matt Geller, biotech analyst with CIBC World Markets.
The American Stock Exchange's biotech index jumped 5.59 percent while the Nasdaq biotech index soared 6.31 percent. The broader Standard & Poor's 500 ended down 7.36 points, or 0.49 percent, at 1,487.37.
"It's just a rocky day," said William Rhodes, chief investment strategist at Williams Capital Group. "And it won't just be today. It will last for a couple of days."
"The bottom line is that nobody knows exactly what prices should be. That's what the volatility is about," he said. "If the Nasdaq holds itself together here and you don't have any more serious force selling over the next few days, then the markets should stabilize here and come back."
