Economic questions
drop stocks

---

By Amy Baldwin
Associated Press

NEW YORK >> Frustrated by signs that an economic rebound will take longer to materialize, investors sold stocks lower today, backtracking from the optimistic advance the market enjoyed just a day earlier. Congressional testimony by Federal Reserve Chairman Alan Greenspan added to the market's malaise.

Wall Street has been alternating between rallies and retrenchment in recent sessions as investors have been relieved when companies beat lowered earnings expectations and then upset when firms say business is unlikely to improve for a while.

"The market is so tentative and the lack of conviction is so low that this summer we are seeing most players put loose change to work rather than big bills. They are not making major commitments," said Alan Ackerman, executive vice president of Fahnestock & Co.

The Dow Jones industrial average finished down 36.56 at 10,569.83, according to preliminary calculations, following a 134-point gain Tuesday on a string of positive earnings reports.

The broader market was also lower, weighed down particularly by the tech sector, where companies such as Intel and Apple indicated business could remain in a slump for a while longer.

The Nasdaq composite index fell 51.15 to 2,016.17, more than wiping out its 38-point gain of yesterday. The Standard & Poor's 500 index declined 6.73 to 1,207.71, erasing half its 11 point-gain from the previous session.

Declining issues outnumbered advancers nearly 9 to 7 on the New York Stock Exchange, with 1,779 falling, 1,344 rising and 189 unchanged. Volume came to 1.48 billion shares.

The Russell 2000 index, which measures the performance of smaller company stocks, fell 6.95 to 483.62. The NYSE composite index fell 1.12 to 615.53. The American Stock Exchange composite index fell 6.40 to 883.03.

The price of the Treasury's 10-year note jumped 24/32 to 99 7/32, while its yield fell 10 basis points to 5.102. The price of the 30-year note rose 1 2/32 to 97 28/32, while its yield fell 8 basis points to 5.521.

Wall Street was both comforted and unnerved by Greenspan's testimony on the economy before a congressional committee. While Greenspan warned that the yearlong slowdown has not ended, he said another interest rate cut might be needed to reinvigorate the economy.

Greenspan's remarks couldn't help the market restart yesterday's buying spree, although they did help the Dow recover from an early 113-point loss.