Dow Declines 1.35 in Day of Quiet Trading
The stock market barely budged in a quiet session today as Wall Street drew closer to a long holiday weekend.
The Dow Jones average of 30 industrials slipped 1.35 to 2,729.73.
Declining issues slightly outnumbered advances on the New York Stock Exchange, with 725 up, 747 down and 492 unchanged.
Big Board volume totaled 141.08 million shares, against 136.02 million in the previous session.
The NYSE’s composite index lost .06 to 187.57.
In the credit markets, prices of long-term Treasury bonds rose slightly, lowering their yields to the 8.56%-8.62% range.
That reversed an increase in rates Tuesday that occurred as a sale of 40-year savings institution “bailout” bonds drew an unenthusiastic reception.
But analysts said traders were proceeding cautiously as they watched the first corporate earnings reports for the January-March quarter come in.
The numbers are expected to be downbeat, for the most part, reflecting persistent weakness in economic growth.
Bond prices rose in nervous early trading today, rebounding from Tuesday’s selloff that stemmed from disappointment over the government’s auction of new long-term bonds.
The Treasury’s bellwether 30-year bond was up at midday around 3/8 point, or $3.75 per $1,000 face amount, after losing about $5 on Tuesday.
Its yield, which moves inversely to the price, fell to 8.54% from 8.59% Tuesday.
Shorter-term Treasuries posted more modest price gains.
Analysts said the credit markets got a boost today from rumors that at least two money center banks are having liquidity problems due to troubled real estate loans.
