Stocks take 3rd straight dive Dow off 8


December 12, 1992|By Bloomberg Business News

NEW YORK -- U.S. stocks shrugged off fresh positive news about the economy yesterday and closed lower for a third straight session.

Trading was less active than usual because of bad weather. "The storm in the Northeast definitely affected the market," said Ricky Harrington, director of investment policy at Marion Bass Securities.

The Dow Jones industrial average declined 8.11, to 3304.08, ending 15.40 points higher for the week. A slump in Sears, Roebuck & Co. and Procter & Gamble Co. accounted for most of the decline.

Declining common stocks outnumbered advancing issue by 8-to-7 on the New York Stock Exchange. Trading totaled 166 million shares on the Big Board.

The NASDAQ Combined Composite index fell 3.15, to 655.78. The slide was led by Novell Inc., Microsoft Corp. and Intel Corp. amid concerns about the earnings outlook and negative comments from leading analysts on Wall Street. The NASDAQ composite fell the last three days after rising 16 percent in two months.

"Stocks have had such a big run the last few weeks that it's time the market digested some of those gains," Mr. Harrington said.

The economic news remains positive.

"Inflation remains low, and that's a definite positive for stocks," said Peter Cardillo, research director at Westfalia Investments.

Novell, Microsoft, President Riverboat Casinos Inc., Haggar Corp. and Spectrum Information Technologies Inc. were the most actively traded issues on the U.S. Composite.

Novell slumped $3.25, to $27.50, after several Wall Street analysts lowered ratings following the company's release of disappointing fourth-quarter earnings. The software manufacturer earned $69.6 million, or 23 cents a share, in the latest quarter, compared with $50.6 million, or 17 cents a share, last year.

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