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Closing Market Report

Star-Bulletin news services

Monday, August 30, 1999

Dow loses 176 on rate fears

Associated Press

NEW YORK - Stocks fell sharply today as bond yields rose and investors, seeking clues to the future course of interest rates, braced for another round of economic data.

The Dow Jones industrial average fell 176.04, or 1.59 percent, to close at 10,914.13. The Dow has fallen more than 100 points in each of the last three sessions.

Broader stock indicators also fell. But trading volume was very light, which tends to exaggerate price moves. The Standard & Poor's 500 fell 24.25, or 1.8 percent, to 1,324.02, and the Nasdaq composite index fell 46.21, or 1.67 percent, to 2,712.69.

Decliners led advancers by a 5-to-2 margin on the New York Stock Exchange, with 2,137 down, 836 up and 526 unchanged. NYSE volume totaled 596.99 million shares vs. 553.19 million Friday. The NYSE composite index fell 10.58 to end at 615.13; the American Stock Exchange composite index dropped 7.31 to 775.21; and the Russell 2000 index of smaller companies fell 5.09 to 427.36.

The 30-year Treasury bond plunged 1 6/32 points, or $11.87 per $1,000 face amount, pushing up the yield to 6.06 percent from 5.97 percent late Friday.

Investors remained nervous about interest rates as they awaited reports this week on manufacturing activity and unemployment, which are expected to offer evidence of how fast the economy is growing, and whether inflation is escalating. Signs of inflation could convince investors that the Federal Reserve will raise interest rates for a third time this year.



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