Posted on: Wednesday, March 30, 2005
Selling hurts Wall St.; Nasdaq at 5-month low
By Michael J. Martinez
Associated Press
NEW YORK — End-of-quarter selling and growing uneasiness about the economy sent stocks sliding yesterday, with Caterpillar Inc. and other industrials depressing blue chips and tech issues dragging the Nasdaq composite index to a five-month low.
Investors discounted the latest reading of the Conference Board's Consumer Confidence Index, which showed a larger-than-expected drop for March. The index reading came in at 102.4, less than the 103 forecast from Wall Street and the 104 reading in February.
Crude oil prices rose in afternoon trading, with a barrel of light crude settling at $54.23, up 18 cents, on the New York Mercantile Exchange. Bonds recovered from Monday's selling, with the yield on the 10-year Treasury note falling to 4.58 percent from 4.64 percent late Monday. The dollar was mixed against other currencies. Gold prices rose.
The Dow Jones industrial average fell 79.95, or 0.76 percent, to 10,405.70, its lowest close since Jan. 24. Broader stock indicators also gave ground.
Declining issues outnumbered advancers by more than 5 to 2 on the Big Board, where preliminary consolidated volume came to 2.22 billion shares, compared with 1.72 billion traded Monday.
The Russell 2000 index fell 10.49, or 1.71 percent, to 604.63.
Analysts blamed the selling on portfolio managers looking to unload poorly performing stocks before the end of the quarter tomorrow. Investors were also nervously awaiting two key economic reports due on Friday — the Labor Department's March employment figures and the Institute for Supply Management's monthly report on the industrial sector.
