Nasdaq up despite bad day for banks

THE Nasdaq rose yesterday for the 11th straight day, buoyed by solid profits from <strong>Apple</strong> and <strong>Starbucks</strong>, while disappointing bank results and declining energy shares weighed on the broader market.<br /><br />The Dow Jones industrial average declined, halting a seven-day winning streak, as investors sold some of the market&rsquo;s recent winners to take profits, and the S&amp;P 500 index ended near break-even.<br /><br />Apple, up 3.5 per cent at $156.74, gave the top boost to the Nasdaq a day after the iPod and iPhone maker reported a quarterly profit that beat forecasts. Starbucks, up 18.4 pe rcent at $17.39, ranked as the Nasdaq&rsquo;s second-biggest gainer, after its quarterly profit also beat estimates.<br /><br />Their advance helped extend the Nasdaq&rsquo;s winning streak &ndash; now the longest such stretch since September 1996. Technology bellwether Apple and coffee chain Starbucks are among stocks that investors use as barometers of consumer spending trends.<br /><br />Strong profits from <strong>NVR</strong> sparked a run-up in home builders&rsquo; stocks . The Dow Jones US home construction index shot up 5.2 per cent, while NVR&rsquo;s stock jumped 5.4 per cent to $584.17.<br /><br />&ldquo;Today&rsquo;s action is a relative positive in that you had some earnings come out that were good, but we are actually near the top of the range,&rdquo; said Richard Sparks, senior equities analyst at Schaeffer&rsquo;s Investment Research.<br /><br />&ldquo;There&rsquo;s a kind of a pause until we get more news on both the earnings and the economic front.&rdquo;<br /><br />The Dow Jones industrial average shed 34.68 points, or 0.39 per cent, to 8,881.26. The Standard &amp; Poor&rsquo;s 500 Index dipped just 0.51 of a point, or 0.05 percent, to 954.07. But the Nasdaq Composite Index gained 10.18 points, or 0.53 per cent, to 1,926.38.<br /><br />The S&amp;P 500 briefly hit a 2009 intraday high of 959.83. But both the S&amp;P and the Dow industrials were reined in by disappointing results from banks, including <strong>Wells Fargo</strong>, down 3.6 per cent at $24.45.<br /><br /><strong>Bank of New York Mellon</strong> slid 6.2 per cent to $27.32 after the world&rsquo;s largest trust bank posted a 43 per cent drop in second-quarter profit.<br /><br />Profit-taking in some of the market&rsquo;s recent winners, including <strong>Coca-Cola</strong>, down 2.4 per cent at $49.13, also dragged on the broader market.<br /><br /><strong>International Business Machines</strong> shed 1.3 percent to $115.57, while <strong>Caterpillar</strong> slipped 2 per cent to $38.66.