Newspaper article THE JOURNAL RECORD

Market Broadly Lower

Newspaper article THE JOURNAL RECORD

Market Broadly Lower

Article excerpt

NEW YORK (AP) - The stock market closed broadly lower Tuesday after being jolted by a news report that President Mikhail S. Gorbachev might resign as Soviet communist party chief.

``The report produced a technical bounce in the market. It was jerking all over the lot,'' said Michael Metz, technical analyst for Oppenheimer & Co.

The Dow Jones average of 30 industrials finished the session 10.14 points lower at 2,543.24 after flip-flopping throughout the day.

Declining issues outpaced advancers by nearly 3 to 1 in nationwide trading of New York Stock Exchange-listed stocks, with 1,156 issues down, 399 up and 431 unchanged.

Volume on the floor of the Big Board came to 186.03 million shares, up from 150.77 million in the previous session.

Analysts said the report about Gorbachev's possible resignation on Cable News Network caused reactions throughout the financial markets. Stock prices became so volatile shortly after the 2 p.m. EST report that traders at one investment brokerage stopped trading temporarily until the market calmed down.

The Dow, which was heading lower during the afternoon, intensified its slide after the news report. Off more than 27 points at 2:30 p.m., the average jumped back into the plus column briefly before finishing lower at the close.

``We haven't seen a market of this kind for some time. It's pulsating, vibrating without any sense of direction,'' said Charles Jensen, chief technical analyst for MKI Securities Corp. in New York.

Aside from the Gorbachev report, interest rates and concern about financing for takeovers remained the market's chief worries.

Analysts said the market also interpreted remarks by Federal Reserve Chairman Alan Greenspan before the Joint Economic Committee in Washington D. …

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