Stocks fall amid economic jitters

Despite late rebound, Dow industrials slide 63 points, to 10,273

October 02, 1999|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks resumed their slide yesterday after new reports showed that the economy's surging growth has not slowed in recent months. The data renewed concerns that the Federal Reserve will raise interest rates next week.

The Dow Jones industrial average fell 63.95 to close at 10,273.00, after having been down nearly 153 points earlier in the session. Broader stock indicators also were mostly lower. The Standard & Poor's 500 edged up 0.10 to 1,282.81, and the Nasdaq composite index fell 9.31 to 2,736.85.

The Russell 2,000 index of small-cap stocks slid 3.77 to 423.53; the Wilshire 5,000 index lost 10.50 to 11,703.30; the American Stock Exchange composite index lost 1.70 to 786.53; the New York Stock Exchange composite index slipped 0.31 to 592.48; and the S&P 400 midcap index dropped 1.56 to 379.03.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks gained 1.89 to 244.60.

Declining issues outnumbered advancers by a 7-to-5 margin on the New York Stock Exchange, where 896.2 million shares traded.

The Dow ended a fairly volatile week just 6.33 points below the previous Friday's close while posting its sixth straight weekly loss. The S&P 500 gained 0.4 percent on the week, and the Nasdaq fell 0.1 percent.

Computer and financial shares led yesterday's decline. Hewlett-Packard Co., the world's No. 2 computer maker, fell $3.375 to $87.375 after warning that fourth-quarter sales growth will be at the low end of forecasts because of disruptions from last month's earthquake in Taiwan.

International Business Machines Corp. lost $3.25 to $117.75; Apple Computer Inc. dropped $1.5938 to $61.7178; and Sun Microsystems Inc. shed $1 to $92.

Micron Technology Inc. gained $5 to $71.50, and Texas Instruments Inc. rose $3.781 to $86.0313.

American Express fell $3.625 to $131.375; Merrill Lynch & Co. slid $1.50 to $65.875; and Citigroup Inc. fell 75 cents to $43.25.

Revlon Inc. tumbled $6.25, or 34 percent, to $12 after the cosmetics maker said it expects a third-quarter loss of $3.20 a share and a wider second-half loss as it cuts shipments to retailers and overseas sales drop.

Eli Lilly & Co. rose $4.375 to $68.5625. The maker of the world's No. 1 anti-depressant, Prozac, won U.S. Food and Drug Administration approval to sell its Evista drug for a new use in treating the bone-thinning disease osteoporosis in postmenopausal women.

Amgen Inc. gained $5.1875 to $86.6875 after the world's No. 1 biotech company said one of its experimental drugs showed promise in early-stage trials as a treatment for osteoporosis.

Merck & Co. rose $3.3125 to $68.125. The No. 1 U.S. drugmaker's Fosamax, approved for prevention and treatment of osteoporosis in older women, also appears to benefit men with the disease, according to the first definitive study of its kind.

General Motors Corp. fell 68.75 cents to $62.25 after the world's largest automaker said sales of cars and light trucks rose less than expected last month, as overseas rivals lured car buyers.

Service Corp. International fell $2.6875 to $7.875 after the world's largest funeral-home and cemetery owner reduced its estimate of third-quarter earnings, pointing to fewer deaths and protracted labor talks.

DuPont Co. rose $2.50 to $63. The largest U.S. chemical company denied what it said were press reports that it had suggested that its third-quarter earnings would fall short of expectations, and DuPont completed its purchase of the rest of Pioneer Hi-Bred International Inc. The company is expected to earn 58 cents a share, according to the average estimate from analysts.

Overseas, Japan's Nikkei stock average rose 0.6 percent; Germany's DAX index and Britain's FTSE 100 each declined 0.5 percent; and France's CAC-40 fell 0.9 percent.

Pub Date: 10/02/99

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