Closing Market Report

Star-Bulletin news services

Friday, July 23, 1999

Dow drops 58

NEW YORK - Blue-chip stocks extended their losses today as the renewed threat of higher interest rates convinced investors that the strong corporate earnings of the second quarter may be in jeopardy. The Dow Jones industrial average fell 58.26 at 10,910.96, adding to yesterday's 33-point drop.

Broader stock indicators were mixed, as the Nasdaq composite index, which fell steeply earlier this week, managed a last-minute gain. The Nasdaq rose 7.44 to 2,691.88.

The Standard & Poor's 500 fell 4.03 to 1,356.94.

Decliners beat advancers by a 2-to-1 margin on the New York Stock Exchange, with 1,940 down, 969 up and 585 unchanged. NYSE volume totaled 632.54 million shares vs. 776.74 million yesterday.

The NYSE composite index fell 2.91 to 638.87; the American Stock Exchange composite index dropped 3.48 to 796.29; the Russell 2000 index of smaller companies fell 3.11 to 448.38.

U.S. Treasury bonds fell, driving yields above 6 percent for the first time in two weeks, after Federal Reserve Chairman Alan Greenspan yesterday signaled the central bank may soon raise interest rates to hold off inflation.

The benchmark fell 5/8, or $6.25 per $1,000 face amount, to a price of 89 14/32. Yields rose to 6.02 percent, the highest level since July 7. Two-year yields rose 3 basis points to 5.55 percent.

Among the positive earnings news today was a report from Sun Microsystems, that said its fourth-quarter profit grew a better-than-expected 30 percent. Sun's stock was up. Computer seller Gateway rose sharply after the company reported a 47 percent increase in second-quarter earnings.

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