NEW YORK -- Prices were mixed on Wall Street today after analysts found data in the government's latest economic assessment that rekindled inflation fears. The Dow Jones industrial average fell 89.34 to close at at 10,789.04.
Dow drops 89
Broader market indicators were mixed, with the Nasdaq composite closing up 14.42 at 2,542.86 but the Standard & Poor's 500 index falling 7.65 to 1,335.18.
The NYSE composite index lost 3.79 to 634.30, and the American Stock Exchange composite index fell 2.03 to close at 776.97. The Russell 2000 index of smaller companies fell .04 to 432.81.
Decliners beat advancers by a narrow margin on the New York Stock Exchange, with 1,330 up, 1,662 down and 528 unchanged. NYSE volume totaled 938.95 million shares vs. 968.93 yesterday.
The 30-year Treasury bond fell 1 29/32 points, or $19.06 per $1,000 security, to 94 4/32, the biggest one-day drop since Feb. 25. The yield rose to 5.66 percent from 5.52 percent yesterday.
The Dow, up during morning trading, began sinking after the bond market dropped markedly in response to the Commerce Department's report that the U.S. economy grew at a strong 4.5 percent annual rate in the first three months of this year, far above expectations. The gain was attributed to consumers spending at the fastest pace in more than a decade.
Bond traders reacted to an inflation measure tied to the GDP, which rose at an annual rate of 1.4 from January through March, up from a 0.8 percent increase in the fourth quarter of 1998.
"It looks like the bond market clobbered the stock market," said David Orr, chief economist at First Union Capital Markets Group.