Newspaper article THE JOURNAL RECORD

Dow Industrials End Last Week Down 4.9 Percent

Newspaper article THE JOURNAL RECORD

Dow Industrials End Last Week Down 4.9 Percent

Article excerpt

NEW YORK (AP) -- Stocks rounded out a dismal week with a volatile session but generally modest losses Friday. Investors continued selling semiconductor stocks, but made some cautious overtures toward battered shares of Internet and financial companies.

The Dow Jones Industrial Average fell 39.26 to close at 10,279.33. The Dow finished the week 524.30 points below last Friday's close, a loss of 4.9 percent.

The Dow has now dropped 1,046.71, or 9.2 percent, below its record close of 11,326.04, set Aug. 25. But it is still up nearly 12 percent for all of 1999.

Broader stock indicators also ended lower. The Standard & Poor's 500 fell 3.05 to 1,277.36, and the Nasdaq composite index fell 9.42 to 2,740.41.

With little news to move the market, investors fell prey to the momentum that dragged the Dow below 10,500 on Thursday. Analysts consider 10,500 a "technical support" level, and most have long forecast that a drop below that level would prompt further selling as investors fear the market is approaching a major, enduring decline.

"It will take days, or maybe weeks, before the market stabilizes," said Tom Galvin, chief equity strategist at Donaldson, Lufkin & Jenrette Securities.

Friday, investors remained focused on fears that technology stocks, the market's strongest performers for most of 1999, are faltering.

The market continued to suffer from Microsoft president Steve Ballmer's remarks Thursday that technology stocks -- including Microsoft -- are too highly priced.

"The market was looking for a reason to sell off and he gave it a reason," said Brian G. Belski, chief investment strategist at George K. Baum & Co., in Kansas City, Mo. "The market needs catalysts in terms of corrections and this was the catalyst."

Technology stocks also came under selling pressure amid concerns that the earthquake that hit Taiwan earlier this week will hurt production of computer chips and may force price increases. Taiwan is a major semiconductor producer.

Microsoft slipped 1/4 to 90 15/16, and Intel fell 1 53/643 to 75 43/64.

Cyclical companies, whose fortunes tend to mirror the strength of the overall economy, sustained some heavy losses. …

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