NASDAQ RUN HALTS SHORT OF RECORD.Byline: Bruce Meyerson Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Stocks fell sharply Tuesday, halting a run at new highs in the Nasdaq market, as investors remained antsy ant·sy adj. ant·si·er, ant·si·est Slang 1. Restless or impatient; fidgety: The long wait made the children antsy. 2. about interest rates and company profits for the nearly finished quarter. The Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. fell 94.35 to 10,721.63 after a rebound attempt failed during afternoon trading. Broader stock indicators also posted steep losses. The technology-laden Nasdaq composite index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed came within 10 points of its April 26 closing record of 2,652.05, but finished the day 50.02 lower at 2,580.26. The loss ended a five-session winning streak Noun 1. winning streak - a streak of wins streak, run - an unbroken series of events; "had a streak of bad luck"; "Nicklaus had a run of birdies" that boosted the index by 232 points, or nearly 10 percent. Analysts said investors are growing hesitant before the impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. rush of company reports on the second quarter, which concludes at the end of this month. ``We're very choppy ahead of the earnings season,'' said Tony Dwyer, chief equity strategist at Ladenburg Thalmann & Co. Since there haven't been that many major warnings from companies, however, he said earnings should be good. Meanwhile, with no new economic data released Tuesday to steer the market, investors focused on the Federal Reserve Board's meeting next week on inflation and interest rates. While most investors have accepted the probability that the Fed will nudge lending rates higher to slow the economy, this week's increase in bond-market interest rates has proved unsettling un·set·tle v. un·set·tled, un·set·tling, un·set·tles v.tr. 1. To displace from a settled condition; disrupt. 2. To make uneasy; disturb. v.intr. . The Dow slid 39 points Monday as the yield on the 30-year Treasury bond, a key influence on interest rates, bobbed above 6 percent. In Tuesday's trading, the yield edged higher again, reaching 6.06 percent. Higher interest rates tend to unnerve the stock market because they lower corporate profits. Heavy industrial companies that are particularly sensitive to the pace of economic activity led the Dow's decline Tuesday. DuPont fell $2.4375 to $67.75, International Paper fell $1.875 to $52.625, and AlliedSignal fell $1.5625 to $66.50. Among leading technology names in Nasdaq trading, Cisco Systems fell $2.125 to $59.50 and Microsoft fell $2.4375 to $86.50 after posting big gains on Monday. |
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