Stocks ignore good news Dow off 6.76


November 14, 1992|By Bloomberg Business News

NEW YORK -- Hints of growth in the economy failed to bolster the broad stock market yesterday, although over-the-counter shares produced moderate gains.

Rumblings of political upheaval in Russia resurfaced, helping drive stocks lower. Russia's defense minister denied rumors that the government plans to disband the Parliament and impose emergency rule, the Itar-Tass news agency reported.

"What's wrong with the market is it's just tired," said William Lord, senior vice president at Lehman Brothers. "Rumors like those [about Russia] make people nervous."

The Dow Jones industrial average largely recouped early losses to close down 6.76, to 3,233.03. For the week, the Dow lost 7.03 points.

Over-the-counter stocks resumed their rally, after having stalled Thursday. The NASDAQ Composite gained 2.79, to 637.16. The Standard & Poor's 500 dipped 0.45, to 422.42.

Advancing stocks exceeded decliners by 770 to 724 on the New York Stock Exchange. Trading, while active, was the lightest this week, with about 194 million shares changing hands on the Big Board.

The economic news yesterday was mostly positive. Retail sales rose 0.9 percent in October. Meanwhile, the University of Michigan's preliminary consumer sentiment index jumped to 83.6 in November, from 73.3 in October, on optimism that President-elect Bill Clinton will jump-start the economy.

As the day wore on, rumors spread that President Boris N. Yeltsin of Russia might be ousted. The rumors restrained any optimism from the economic reports.

Concerns about the Russian political situation might have been rekindled by a presentation by Kevin Phillips, a Republican strategist and author, to money managers, said Robert Stovall, president of Stovall/Twenty-First Advisers. According to Mr. Stovall, who attended the meeting, Mr. Phillips said Russia may be moving toward civil war, which would pose an immediate and serious problem for Mr. Clinton.

Analysts were reluctant to attach much significance to yesterday's activity, saying the market has just run out of gas for now. "The market has run up, and I see lots of stocks giving up gains," Mr. Stovall said. "Rather than get wrapped up about some rumor that's probably not true, in this very itchy environment, a lot of people are [booking] profits before the weekend."

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.