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Dow drops 67.6
Associated PressNEW YORK - Stocks drifted to a mixed finish today after a report of slowing productivity growth intensified worries that the Federal Reserve will raise interest rates by as much as a half-percentage point later this month. Blue chip stocks led the decline.
The Dow Jones industrial average was down 67.64 at 10,412.49 and the Nasdaq composite index was up 12.93 at 3,720.24. The Standard & Poor's 500 fell 5.72 to 1,409.38. Advancers beat decliners by a 5-to-4 margin on the New York Stock Exchange, with 1,617 up, 1,276 down and 464 unchanged. NYSE volume totaled 915.27 million shares vs. 990.34 million yesterday. The NYSE composite index slipped 0.44 to to 631.47; the American Stock Exchange composite index gained 6.65 to 921.05; and the Russell 2000 index climbed 6.35, or 1.3 percent, to end at 501.91.
The 30-year Treasury bond fell 1/2 point, or $5 per $1,000 face amount; its yield rose 5 basis points to 6.16 percent. The 10-year note's yield rose 5 basis points to 6.45 percent, the highest level since Feb. 21. The two-year yield rose 2 basis points to 6.74 percent while its price fell 1/32 to 99 9/32. It dropped less than other Treasuries as investors saw value when its yield touched a five-year high of 6.78 percent in early trading. The two-year yield, which has risen 48 basis points in the past four weeks, more than reflects the risk of a half-point rate gain by the Fed, some investors said.
The stock market was hurt by investors' fears that the Fed will raise interest rates by as much as a half-percentage point at its May 16 meeting as it works to keep inflation under control.