Star-Bulletin news services
Stocks gyrate but fall
amid terrorism fears
NEW YORK >> Wall Street retreated yesterday as a wave of terror attacks continued in Turkey with the bombings of HSBC bank and the British consulate. Upbeat reports on employment and the economy helped limit the market's losses.
The Dow Jones industrial average fell in early trading and then rose as much as 35 before pulling back again late in the day. Analysts said indecisive investors weren't willing to make major commitments given the renewed political uncertainty, but also given the improving health of the U.S. economy.
"Investors are very nervous about continued terrorist activity, but at the same time, they are showing more confidence in the economy and the equity market," said Peter Dunay, chief market strategist at Wall Street Access. "So we have a little battle of the pros and cons here."
The Dow closed down 71.04, or 0.7 percent, at 9,619.42, having declined in four of the previous five sessions.
The broader market also finished lower. The Nasdaq composite index fell 17.73, or 0.9 percent, to 1,881.92. The Standard & Poor's 500 index declined 8.79, or 0.8 percent, to 1,033.65.
Declining issues outnumbered advancers 9 to 5 on the New York Stock Exchange. Volume was light at 1.29 billion shares, compared with 1.32 billion traded Wednesday.
The Russell 2000 index, which tracks smaller company stocks, fell 2.54, or 0.5 percent, to 523.08.
The NYSE composite index fell 42.35, or 0.7 percent, to 5,924.78. The American Stock Exchange composite index lost 1.65, or 0.2 percent, to 1,067.11.
The two-year Treasury note gained 432 to 99 2 2/32, with its yield falling 7 basis points to 1.79 percent. The 10-year note rose 2 2/32 to 100 2632, with its yield dropping 9 basis points to 4.15 percent.
The economic news lent support to the market and enabled the major indexes to move briefly into positive ground.
The Labor Department reported that new jobless claims fell by a seasonally adjusted 15,000 to 355,000. The reading, which beat economists' estimates, was the seventh straight week that claims have been below the 400,000 level, which is associated with a weak job market.
And the Conference Board said its Index of Leading Economic Indicators, the widely watched economic forecasting gauge, increased 0.4 percent to 113.6 last month compared to a flat reading in September. Analysts were expecting a more modest 0.2 percent rise.
Schering-Plough Corp. fell 72 cents to $15.28 after the drug company said its Polish subsidiary is being investigated by federal regulators.
Hewlett-Packard Co. declined 75 cents to $21.59 even though the computer company posted a doubling of quarterly profits that beat analysts' expectations.
Foot Locker Inc. jumped $2.46 to $20.76 after the shoe store chain reported third-quarter earnings that came in higher than forecasts, citing strong sales and cost management.
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