NEW YORK >> War fears overshadowed encouraging economic reports today on Wall Street, sending stock prices lower for a third consecutive day. The Dow Jones industrials fell to their lowest level in nearly six weeks. Stocks fall on war fears
By Hope Yen
Associated PressAnalysts said trading was choppy as investors struggled to decide whether to buy on bets of stronger prospects in 2003. But the escalating rhetoric on Iraq today ultimately gave them another reason to sell, they said.
"They're worried quite a bit about a war, and they're still worried about corporate profits and economic factors going forward," said Mark Donahoe, managing director at US Bancorp Piper Jaffray in Minneapolis.
Declining issues outnumbered advancers 17 to 11 on the New York Stock Exchange. Volume was moderate. The Dow Jones industrial average fell 82.55, or 1 percent, to close at 8,364.80, for a three-day loss of 262 points. It was the lowest finish since Nov. 11, when blue-chip stocks closed at 8,358.95.
The broader market also declined. The Nasdaq composite index lost 7.35, or 0.5 percent, to 1,354.16. The Standard & Poor's 500 index dropped 6.86, or 0.8 percent, to 884.26. The Russell 2000 index fell 0.51, or 0.1 percent, to 383.42.
The price of the Treasury's 10-year note was up 23/32 point this afternoon, while its yield fell to 3.95 percent from 4.04 percent yesterday. The price of two-year Treasury notes was up 1/8, while its yield fell to 1.71 percent from 1.78 percent yesterday.
Chief U.N. weapons inspector Hans Blix told the Security Council that Iraq's 12,000-page weapons declaration contains gaps and inconsistencies. The United States called Iraq in "material breach" of U.N. resolutions, setting a course toward a possible war early next year.
Investors, meanwhile, largely shrugged off reports showing modest improvements in the economy.
The Labor Department reported today that new claims for unemployment benefits dropped last week by a seasonally adjusted 11,000 to 433,000. Yet, even with the drop, claims remained above the 400,000 mark, a level associated with a lackluster job market.
And the New York-based Conference Board said its Index of Leading Economic Indicators rose 0.7 percent in November, the largest monthly gain in a year, following a revised 0.1 percent increase the previous month. The November figure slightly beat analysts' estimates.
Analysts are questioning whether Wall Street will see its traditional holiday rally in the last two weeks of December.
"In the absence of really strong and compelling economic evidence, the markets are still subject to tax selling," said A.C. Moore, chief investment strategist for Dunvegan Associates.
Oracle rose 37 cents to $11 after the business software maker reported earnings that beat analysts' expectations.
Dole Foods jumped $4.13, or 14.5 percent, to $32.58, after its chairman, David Murdock, agreed to buy all of the giant food company's outstanding shares he doesn't own and take it private in a $2.5 billion deal.
Overseas, Japan's Nikkei stock average finished 0.5 percent higher. In Europe, France's CAC-40 lost 0.8 percent, Britain's FTSE 100 rose 0.2 percent and Germany's DAX index fell 2 percent.
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