Posted on: Friday, July 16, 2004
Investor uncertainty leaves stocks drooping
By Michael J. Martinez
Associated Press
NEW YORK — Uncertain investors sent stocks lower yesterday, as uneasiness over terrorism and future earnings overshadowed an unexpected drop in wholesale prices and another series of upbeat profit reports.
The producer price index dropped 0.3 percent in June, according to the Labor Department — a sign that inflation might not be as serious an issue as some had feared. Economists had expected a slight rise.
The Commerce Department reported that inventories rose 0.4 percent in May, while sales climbed 0.7 percent, signs that businesses are increasing their investments and that consumers are rewarding their efforts.
Jobs, however, continue to be an area of concern. First-time jobless claims rose by 40,000 for the week to 349,000. The Labor Department blamed seasonal adjustments at the nation's automakers for the increase.
Most investors chose to wait out the session in advance of IBM Corp.'s earnings, which came out after the close. IBM, which beat estimates by 4 cents per share, was down 11 cents at $84.02 for the regular session, but rose 73 cents to $84.75 in after-hours trading.
Advancing issues outnumbered decliners by about 5-to-4 on the Big Board, where preliminary consolidated volume came to 1.76 billion shares, compared to 1.8 billion on Wednesday.
While second-quarter earnings in the financial and technology sectors came in above estimates, stocks wavered for much of the day, partly because of options expirations today. In addition, investors were increasingly concerned about third- and fourth-quarter profit outlooks, as well as a number of economic and political issues, analysts said.
