Newspaper article THE JOURNAL RECORD

Stock Prices Wilt on Profit Reports

Newspaper article THE JOURNAL RECORD

Stock Prices Wilt on Profit Reports

Article excerpt

NEW YORK (AP) _ Stocks sagged Tuesday under the weight of disappointing corporate results and worries about rising interest rates.

Unimpressive quarterly figures from a few blue chip companies depressed the Dow Jones industrial average, which finished off 6.16 at 3,735.68.

Other popular market measures also declined. The New York Stock Exchange composite index fell 0.48 to 250.24 and Standard Poor's 500 stock index slid 0.89 to 453.36. The Nasdaq Stock Market composite index ended 1.22 lower at 715.66 while at the American Stock Exchange the market value index bucked the trend, rising 0.44 to 434.50.

Losers led gainers by about 5 to 4 on the Big Board where the trading pace remained sluggish. Volume on the NYSE floor came to 232.61 million shares as of 4 p.m., compared to 211.67 million Monday.

The downturn in stocks coincided with an uneasy atmosphere in the bond market as the Treasury sold $17.30 billion in two-year notes. The bond market failed to improve much in the afternoon even though demand for the new paper turned out to be slightly better than expected.

Weighing down bonds were lingering concerns that Wednesday's auction of five-year notes might get a cool reception, which would tend to push interest rates higher. The fact that the calendar is crowded with Treasury debt sales in the near future added to the anxiety.

The key 30-year Treasury bond ended with a loss of point, causing a corresponding rise in its yield to 7.54 percent from 7.52 percent late Monday.

While watching the edgy bond market, equity investors monitored corporate earnings reports. Three stocks that are components of the Dow industrial average _ Boeing, Chevron and Eastman Kodak _ were among the issues that suffered earnings-related setbacks.

Boeing fell to 45 after posting a 48 percent drop in its second-quarter profit due to sharply lower sales. …

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