Posted on: Wednesday, December 8, 2004
December trading lull sends stocks in retreat
By Meg Richards
Associated Press
NEW YORK — Stocks slumped yesterday as investors sifted through mixed economic data and rumors about big merger deals, including a report that consumer products giant Johnson & Johnson is in talks to purchase a leading manufacturer of medical devices.
Wall Street "needs something to boost things along," said Larry Wachtel, market analyst at Wachovia Securities. "The probable deal ... is helpful ... but there's nothing in the way of dramatic elements to drive you forward. I don't see a lot of selling pressure. I don't see a reason for the market to dump. But I just don't see anything to drive it dramatically forward."
The Dow Jones industrial average slid 106.48, or 1.01 percent, to 10,440.58. The Nasdaq composite index was down 36.59, or 1.70 percent, at 2,114.66.
Oil prices sank to a four-month low. Futures of light, sweet crude declined $1.52 to close at $41.46 per barrel on the New York Mercantile Exchange.
The dollar struck an all-time low against the euro.
Decliners outnumbered advancing issues by more than 4 to 1 on the Big Board. Preliminary consolidated volume came to 1.97 billion shares, compared with 1.75 billion shares at the same point Monday.
The Russell 2000 index was down 13.53, or 2.12 percent, at 625.50.
Analysts said the lackluster trading was characteristic of the first part of December, when a lull often precedes an end-of-year rally. But there's no guarantee the market will benefit from the so-called Santa Claus effect this year, as stocks already have posted a significant advance over the past two months and appear somewhat over-
extended.
