Newspaper article THE JOURNAL RECORD

Stock Market Rally Stalls; Dow Drops

Newspaper article THE JOURNAL RECORD

Stock Market Rally Stalls; Dow Drops

Article excerpt


NEW YORK (AP) - A dynamic five-day stock market rally stalled Thursday as traders siphoned profits from a broad range of issues.

The Dow Jones average of 30 industrials held up better than the broader market, falling 5.20 to 2,999.26, back under the mystical 3,000 level. Still, it was the third highest close in history, following Wednesday's record-breaking close of 3.004.46. The previous all time high was 2,999.75 on July 16 and 17, 1990.

Smaller stocks didn't fare as well as components of the Dow average. Declining issues outnumbered advances by about a 9-to-7 ratio in nationwide trading of New York Stock Exchange-listed stocks, with 917 down, 708 up and 462 unchanged.

Big Board volume was active at 217.41 million shares, against 246.93 million in the previous session.

Stocks sold briskly after the opening bell as traders took the opportunity to profit from a rally that accelerated rapidly in the past week.

Traders also said selling was influenced by a Washington Post news report that suggested the Federal Reserve agreed in March not to lower interest rates further. The committee's minutes usually are secret until a month after the meeting.

Dick Stein, manager for MKI Securities Inc., said he was pleased the market held up well during the sell-off.

``The profit taking has been absorbed extremely well,'' said Stein.

Pushing the market upward were strong earnings reports and a positive unemployment survey, said Hugh Johnson, senior vice-president at First Albany Corp.

The Labor Department said 451,000 people applied for unemployment insurance for the week ended April 6, a drop of 22,000 from the week before. The report provided evidence the economy was beginning to stabilize.

Several stocks rose on favorable earnings reports. Digital Equipment's stock soared 4 to 70 3/8 after the company reported third-quarter earnings more than quadrupled. …

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