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NEW YORK -- Stymied by concerns about interest rates and earnings, investors sold stocks lower today, focusing once again on technology issues. The Dow Jones industrial average finished down 51.57 at 10,656.03. Dow falls 51.57
Associated Press
The latest blow for high-tech stocks was Merrill Lynch's downgrade of the fiber optic industry, which had been seen as the last solid performer in the tech sector. And investors were still shaken by the renewed prospect of higher interest rates that would further cut into corporate earnings. Prices fluctuated in a narrow range for much of the day as the market sought a direction. By late afternoon, investors found a path: downward. The Nasdaq composite index fell 133.61, or 4 percent, to close at 3,031.88, and the Standard & Poor's 500 index was off 17.49 at 1,372.32. Both indexes have a large representation of high-tech stocks.
Decliners led advancers by a nearly 5-to-3 ratio on the New York Stock Exchange, with 1,650 down, 1,213 up and 456 unchanged. NYSE Volume came to 935.7 million, well below yesterday's 1.06 billion.
The NYSE composite fell 4.07 to 647.02; the American Stock Exchange index slipped 7.59 to 894.15; and the Russell 2000 fell 10.15 to 481.64.
The 10-year Treasury note's price was up 10/32 point, or $3.13 per $1,000 in face value, at midday; its yield fell to 5.67 percent from 5.71 percent late yesterday. Prices and yields move in opposite directions.
The 30-year bonds were up 12/32 point and yielded 5.74 percent, down from 5.77 percent late yesterday.
Merrill Lynch analysts downgraded their ratings of several companies in the fiber optic sector, citing high inventories that will cut into future sales.
Broadcom plunged $25.19, or 15 percent, to close at $144.50. PMC Sierra fell sharply, finishing down $18.13 at $113.