Newspaper article THE JOURNAL RECORD

Stock Prices Down Third Straight Day

Newspaper article THE JOURNAL RECORD

Stock Prices Down Third Straight Day

Article excerpt

NEW YORK (AP) _ Stock prices fell for the third consecutive session on Thursday amid continued worries about the prospect of higher interest rates.

The Dow Jones industrial average fell 14.47 to 3,837.13, bringing the blue chip index's losses over the last three days to just under 100 points.

The market was mixed for most of the session, with the Dow bouncing between the positive and negative column throughout the day. A wave of program selling late in the session pushed the industrial index sharply lower near the close.

"We have nervous bulls, nervous bears, nervousness everywhere about interest rates," said Alan Ackerman, executive vice president at Reich Co. in New York.

The bears had only a slight edge, however. Declining issues outnumbered advancers by 1,154 to 1,007 on the New York Stock Exchange. Big Board volume totaled 302.87 million shares, down from 351.84 million on Wednesday.

Most broad-market indexes lost ground. The NYSE's composite index fell 0.19 to 254.52. The Standard Poor's 500-stock index fell 0.19 to 461.27. The Nasdaq composite index fell 0.27 to 760.44. But the American Stock Exchange's market value index rose 0.14 to 454.91.

The sell-off occurred amid fears that the Federal Reserve will raise short-term rates as soon as next Tuesday, when its Open Market policy committee meets. Higher rates increase corporate borrowing costs and can choke off investment. Higher rates also make fixed-income investments such as bonds more attractive relative to equities.

As recently as last week, a tightening had not seemed imminent. But last Friday, the government released data suggesting that American manufacturing is operating near maximum capacity. This week, the government reported a leap in the nation's monthly trade deficit and a surge in housing starts.

"Economic momentum is stronger than previously expected," said Thomas McManus, equity strategist at Morgan Stanley Co. …

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