Posted on: Friday, June 25, 2004
Attacks overseas cause jitters on Wall Street
By Meg Richards
Associated Press
A record reading on home sales for May was a bright spot, suggesting continued economic strength. But violence in Iraq and a pair of bomb blasts in Turkey, including one near a hotel where President Bush is expected to stay ahead of Monday's NATO summit, caused some jitters. Still, the lack of a deeper slide was encouraging to analysts.
The Dow Jones industrial average sagged 35.76, or 0.3 percent, to 10,443.81. The Nasdaq composite index was down 5.41, or 0.3 percent, at 2,015.57. The Standard & Poor's 500 index shed 3.41, or 0.3 percent, to 1,140.65.
The markets have been in a torpor all month ahead of a pivotal Federal Reserve meeting on interest rates and the handover of sovereignty in Iraq next week. A coordinated series of attacks in the country, mostly directed at Iraqi security forces, raised further doubts about the likelihood of a smooth transition.
Adding to investors' uncertainty, the Commerce Department reported that orders for costly manufactured goods slipped for a second straight month — a sign that the economic recovery, while strong, remains somewhat uneven.
Concern about rising rates did little to deter home buyers last month, however. A second report from the Commerce Department showed sales shot up 14.8 percent. The advance, which follows a 7.9 percent decline in April, far outpaced economists' expectations.
Decliners slightly outnumbered advancing issues on the New York Stock Exchange. Final consolidated volume showed about 1.79 billion shares traded, compared with 1.81 billion on Wednesday.
NEW YORK — Stocks shifted lower yesterday as investors' enthusiasm flagged in the face of multiple attacks overseas and weak sales of manufactured goods.
