Stocks End Mixed as Jitters Mount; Dow Falls Again
Renewed anxiety about the possibility of more terror attacks pressured Wall Street on Thursday, pushing stocks to a mixed finish despite some better-than-expected results from Boeing and General Motors.
Prices fluctuated on fears the latest spate of anthrax cases will keep Americans at home and further hurt consumer spending, which accounts for two-thirds of the economy. Analysts said earnings reports, even the relatively strong ones, are providing little reassurance because companies have yet to say business is improving.
“There’s a fear this [anthrax scare] will really impede the consumer as far as any spending going on,” said Charles Pradilla, chief investment strategist at SG Cowen. “While earnings are important ... they really pale in comparison to events like this. Especially when earnings still aren’t anything to get excited about.”
The Dow Jones industrial average closed down 69.75 points, or 0.8%, at 9,163.22, extending Wednesday’s 151-point decline.
Broader stock indicators were mixed. The Standard & Poor’s 500 index fell 8.48 points, or 0.8%, to 1,068.61, but the Nasdaq composite index gained 6.38 points, or 0.4%, to 1,652.72.
Losers outnumbered winners almost 2 to 1 on the New York Stock Exchange and about 4 to 3 on Nasdaq. Volume was moderate.
Thursday’s selling recalled Wednesday’s session, when the market was so concerned about the anthrax news it disregarded some relatively positive earnings from IBM and Intel. Although the selling wasn’t as intense, investors clearly were jittery.
Boeing shares fell 84 cents to close at $32.86, after it beat third-quarter estimates by a penny but indicated the Sept. 11 terrorist attacks will hurt operations. GM, which exceeded analysts’ expectations despite a loss of $368 million, fell 75 cents to $42.02.
After the market closed, Microsoft reported it beat reduced expectations for its fiscal first quarter. The software company, however, lowered its forecasts for its second quarter and the rest of the year. Its stock still rose 19 cents to $56.94 in after-hours trading, adding to a 72-cent gain during regular trading.
Sun Microsystems, whose earnings also beat expectations, rose 6 cents to close at $8.94 in late trading, adding to an 8-cent advance during the day.
Among other market highlights:
*Energy stocks fell in line with a drop of 3.5% in U.S. crude oil prices on speculation the Organization of Petroleum Exporting Countries will not act soon to halt a price slide due to soft demand. ExxonMobil shed $1.04 to $40.40. The Philadelphia index of oil services stocks shed 3.5%.
*Gold futures fell $4.20 to $279.20 an ounce on the New York Mercantile Exchange. It was the biggest decline since June 27 and the lowest closing price since Sept. 10 as investors shed gold they bought as a hedge against declines in other markets.
*Merck, the world’s No.3 drug maker, dropped $2.75 to $66.30. The company said profit rose 6% but also cited sluggish sales of its blockbuster Vioxx arthritis drug.
*Sprint, the No.3 U.S. long-distance telephone company, slumped $1.94 to $20.05. The company reported a loss and cut 6,000 jobs. Sprint’s wireless arm, Sprint PCS Group, fell $2 to $24.45 and was the most active issue on the New York Stock Exchange.
Market Roundup, C5-C6
