Newspaper article THE JOURNAL RECORD

Stock Prices Close Mixed

Newspaper article THE JOURNAL RECORD

Stock Prices Close Mixed

Article excerpt

NEW YORK (AP) _ The stock market ended mixed Monday, with many nervous investors sitting out the session because of uncertainty about the economy and Bosnia.

The Dow Jones industrial average rose 6.92 points to 3,449.93.

Declining issues outnumbered advances by about 5 to 4 on the New York Stock Exchange.

Volume on the floor of the Big Board came to 226.18 million shares as of 4 p.m., down from 252.13 million in the previous session.

Stocks have taken their cue from bonds in recent months and bond prices tumbled Monday on concerns about inflation, said Carmine Grigoli, chief U.S. portfolio strategist at Baring Securities.

Last week, government data showed consumer and producer prices rising more than expected in April. Inflation erodes the value of fixed-income securities such as bonds.

Low interest rates are good for stocks because companies can borrow at less cost and because they make the potential return from stocks more attractive. Because interest rates are currently so low, there are few viable investment options to stocks, and that is helping to support share prices, analysts said.

Also on the economic front, investors are worried about President Clinton's ability to push his economic proposals through Congress, said James Solloway, director of research at Argus Research Corp.

A third factor depressing the market was concern over possible U.S. military involvement to halt the violence in Bosnia, Solloway said.

This weekend's apparent rejection by Bosnian Serbs of a United Nation's peace plan heightened that concern, he said. Washington and its European allies had postponed any decision on action until after the referendum.

Health care stocks, meanwhile, rose after The New York Times reported the administration has apparently backed away from the idea of trying to impose rigid, legally binding controls on drug prices, opting instead for guidelines. …

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