Closing Market Report

Associated Press

Wednesday, October 15, 1997

Intel, rates
hit Dow by 38

NEW YORK -- Stocks fell modestly today as investors bristled at a disappointing profit report from Intel and signs of heavy consumer demand that could spur inflation.

The Dow Jones industrial average fell 38.31 to close at 8,057.98, a partial recovery from an early 61-point drop.

Decliners outnumbered advancers by a 7-to-5 margin on the New York Stock Exchange, with 1,203 up, 1,672 down and 553 unchanged. NYSE volume totaled 504.68 million shares vs. 510.35 million yesterday.

The Standard & Poor's 500-stock list fell 4.55 to 965.73, the NYSE composite index fell 1.68 to 506.89, and the Nasdaq composite index fell 9.73 to 1,723.06

The Russell 2000 index of smaller companies fell 1.23 to 462.74, the second straight drop for that high-flying measure.

The American Stock Exchange composite index, which is dominated by smaller companies, fell 0.45 to 714.34.

Stock measures slipped as interest rates rose in the bond market after a stronger-than-expected reading on September's retail sales fueled fears the Federal Reserve may slow the economy to protect against inflation.

The price of the Treasury's main 30-year bond was off 18-32 point this afternoon while its yield rose to 6.40 percent from 6.35 percent late yesterday.

Prices and yields move in opposite directions.

Even before the morning report, however, the market was bracing for a difficult session in the aftermath of late Tuesday's third-quarter profit report from Intel.

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