Newspaper article THE JOURNAL RECORD

Stock Market Closes Lower for Third Straight Session

Newspaper article THE JOURNAL RECORD

Stock Market Closes Lower for Third Straight Session

Article excerpt

NEW YORK (AP) _ Stocks seesawed Wednesday but ended the session lower, as persistent bond-market fears about inflation and the weak dollar pushed the Dow Jones industrial average down for the third straight day.

The Dow average of 30 big-name stocks fell 26.24 to 3,837.13, bringing the blue chip indicator's losses so far this week to nearly 94 points.

The Dow lost as much as 20 points early in the session, rallied 14 points in mid-afternoon as the dollar's value improved in foreign exchange trading after hitting postwar lows against the Japanese yen.

But later the Dow average and broader market drifted lower as bond prices failed to rally. Computerized selling strategies activated late in the day extended the losses.

The 30-year bond, a barometer of inflation fears, fell 11-32 point. Its yield, which rises when prices fall, stood at 8.08 percent, up from 8.06 percent Wednesday.

"As long as bond yields stay in this area, it's going to be very difficult to mount a rally," said Peter Canelo, market strategist at NatWest Securities. "Every attempt at a rally has been turned back."

Stock investors are concerned that the lofty bond yields will lure investors away from equities and into bonds. "Yields at 8 percent are just too good to pass up," Canelo added. "I think they're very competitive with the stock market here."

Declining issues outnumbered advancers more than 4 to 3 on the New York Stock Exchange. Big Board volume totaled 331.36 million shares, up from 314.95 million on Tuesday.

Broad-market indexes outperformed blue chips, largely on the strength of rallying technology stocks.

According to preliminary figures, the NYSE's composite index fell 0.76 to 255.98. The Standard Poor's 500-stock index slipped 1.91 to 466.51.

The American Stock Exchange's market value index declined 1.34 to 454.18. …

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