Dow off 53 amid
inflation fear

NEW YORK -- Stocks pulled back again today amid worries that next week's economic data will reveal more inflationary pressures, justifying another increase in interest rates by the Federal Reserve.

The Dow Jones industrial average fell 53.38 to 6,738.87. After gaining 173 points on Tuesday, the Dow has fallen for three straight sessions, trimming the week's gain to just 35 points.

Decliners outnumbered advancers by a 2-to-1 margin on the New York Stock Exchange, with 799 up, 1,683 down and 840 unchanged. NYSE volume was 414.32 million shares vs. 485.41 million yesterday.

The Standard & Poor's 500-stock list fell 5.81 to 765.37, and the NYSE's composite index fell 3.24 to 400.38. The Nasdaq composite in

dex fell 18.81 to 1,209.29, and the American Stock Exchange composite index fell 1.12 to 542.83.

Broader measures also retreated as interest rates crept back toward their highest levels since July in the bond market. The biggest damage came in the technology-heavy Nasdaq market, which gave back more than half of its gains from a three-day winning streak.

The Dow's weakest issue was Philip Morris, which fell after a federal judge ruled that the Food and Drug Administration has the right to regulate tobacco as a drug. IBM gave back a small fraction of yesterday's 11-1/4-point rally.

Investors mostly brushed off a report that said sales of previously owned homes fell 2.8 percent in March. The bigger concern was next week's wage and cost data, which has a big impact on inflation.