NEW YORK - Stocks fell today after Federal Reserve Chairman Alan Greenspan voiced concern over the highly valued stock market, striking fear in investors who interpreted the remarks as a sign the Fed isn't finished raising rates. Dow drops 108
The Dow Jones industrial average fell 108.28 to close at 11,090.17. The Dow ended just 10 points below last Friday's close, wrapping up a week that saw the blue-chips soar to a record close on Wednesday. Broader stock indicators were also lower today. The Standard & Poor's 500 fell 13.74 to 1,348.27, and the Nasdaq composite index fell 15.72 to 2,758.90.
Decliners beat advancers by an 11-to-7 margin on the New York Stock Exchange, with 1,803 down, 1,076 up and 581 unchanged. NYSE volume totaled 500.06 million shares vs. 716.98 million yesterday. The NYSE composite index fell 6.63 to close at 625.71; the American Stock Exchange composite dropped 1.60 at 782.52; and the Russell 2000 index of smaller companies fell 3.57 to 432.45.
The 30-year bond fell 1 3/32 points, or $11.25 per $1,000 face amount, with its yield climbing to 7 basis points to 5.97 percent. Yields on two-year notes rose 6 basis points to 5.64 percent.
Greenspan, speaking today at a Kansas City Federal Reserve bank meeting in Jackson Hole, Wyo., said the extraordinary rise in stock prices the last five years has been mostly inexplicable.
After the close, Phoenix-based Phelps Dodge Corp. said it will take its offers for all shares outstanding in Cyprus Amax Minerals Co. and Asarco Inc. directly to the companies' shareholders, its latest move in an attempt to be the world's biggest copper producer, Bloomberg News reported.