Wall Street: Tues mid-session

BLUE-CHIP stocks were higher at midday after a batch of upbeat economic data, but technology shares fell as investors moved their money out of the leaders of the nine-month market rally to lock in profits.

Investors also sifted through a host of economic information, including a report that showed a bigger-than-expected rise in industrial output.

The Dow Jones industrial average gained 57.04 points, or 0.57% to 10,079.86 and the Nasdaq Composite Index was down 9.15 points, or 0.48% at 1,909.11.

US factories, mines and utilities boosted production sharply in November, according to a Federal Reserve report showing further signs of a manufacturing recovery.

Consumer prices unexpectedly dropped last month as the cost of energy, clothing, furniture and lodging all fell, according to a Labour Department report that showed underlying inflation running at a nearly 38-year low.

A report from the Commerce Department said housing starts rose 4.5% in November.

In corporate news, mobile-phone maker Motorola named former Sun Microsystems president Edward Zander as chairman and chief executive. Motorola's shares rose 24 cents, or 1.9% to $13.03.

Electronics company Honeywell International said 2004 earnings could fall as much as 9% because of higher pension costs and post-retirement benefit expenses.

Shares of the company, which also said fourth quarter 2003 earnings would be at the low end of its previous estimates, fell 62 cents, or about 2% to $30.21.

Pier 1 Imports tumbled after it said December sales are weaker than expected and results for the current quarter would miss Wall Street estimates. Shares of the home furnishings retailer fell $2.34, or 10% to $20.17.