Dow Falls 9.29; Traders Dislike Strong Growth

The stock market pulled back today, faced with news of continuing strong growth in employment.

The Dow Jones average of 30 industrials dropped 9.29 to 2,282.14, reducing its gain for the week to 7.85 points.

Declining issues outnumbered advances by about 7 to 5 on the New York Stock Exchange, with 598 up, 835 down and 497 unchanged.

Big Board volume totaled 146.83 million shares, against 143.16 million in the previous session.

The NYSE’s composite index fell .51 to 164.85.

The Labor Department’s report that the civilian unemployment rate fell to a 15-year low 5.1% in February had been anxiously awaited on Wall Street all week.

Traders had been hoping for new evidence that economic growth was slowing, taking upward pressure off inflation and interest rates.

The figures were poorly received in both the bond and stock markets.

Interest rates shot up and government bond prices tumbled today in response to news of strong employment growth in February, a report that fanned inflation fears.

The Treasury’s benchmark 30-year bond skidded more than 5/8 point, or about $6.50 per $1,000 in face amount, while its yield, which moves in the opposite direction from its price, jumped to 9.13% from 9.06% late Thursday.

In the secondary market for Treasury securities, prices of short-term governments were off from 7/32 point to 9/32 point, intermediate maturities lost from 11/32 point to 3/8 point and long-term issues fell 3/4 point, according to the Telerate Inc. financial information service.

The movement of a point is equivalent to a change of $10 in the price of a bond with a $1,000 face value.

The federal funds rate, the interest on overnight loans between banks, was quoted at 9 13/16%, unchanged from late Thursday.