Wall Street staggered to a narrowly mixed finish yesterday as investors coming off last week's sell-off fretted over an uncertain economy...
NEW YORK — Wall Street staggered to a narrowly mixed finish yesterday as investors coming off last week’s sell-off fretted over an uncertain economy.
The Dow fell 16.26 to 10,071.25 after losing 420 points the past three sessions.
Microsoft, one of the 30 Dow stocks, gained 19 cents to close at $24.65 a share. Boeing, also a Dow stock, slipped 8 cents to $56.92.
Broader stock indicators edged higher. The Standard & Poor’s 500 index was up 3.36 at 1,145.98, and the Nasdaq composite index gained 4.77 to 1,912.92.
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Stocks struggled to find a bottom after three straight triple-digit drops in the Dow, but sharply fluctuating prices and the lack of a solid recovery rally illustrated investors’ continued nervousness about the possibility of inflation in the middle of a projected slowdown in economic growth.
“After you see a decline of the magnitude we saw Friday, you’d expect some degree of recovery, but we’re not seeing much, and that’s very uninspiring,” said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. “This makes me believe that we may have further to go before we find a bottom here.”
Oil prices moved in and out of negative territory, adding to Wall Street’s uncertainty. A barrel of light crude closed at $50.37, down 12 cents, on the New York Mercantile Exchange.
The volatility and lighter volume in stocks were due in part to a pair of economic reports coming later in the week — today’s Producer Price Index, which measures wholesale price increases, and its retail counterpart, the Consumer Price Index, tomorrow. Many analysts have projected slower economic growth for the second half of the year — and if the reports point to a rise in prices, slower growth could turn into no growth.
“These are very important reports, and it’s not surprising that investors would pay considerable attention to them,” said Jack Caffrey, equities strategist at J.P. Morgan Private Bank. “This will forecast the state of the economy and what the Federal Reserve might do with interest rates, and it’s not surprising investors would be skittish taking large positions in front of that.”
Inflation worries have dogged the markets since early March, when it appeared the Dow might reach the 11,000 mark. Now, with the Dow threatening to fall below 10,000 for the first time since Oct. 26, investors are looking to economic data and the Fed’s May 3 meeting for signs of improvement and a better read on the economy and interest rates.
The Fed is expected to raise the benchmark interest rate by a quarter percentage point to 3 percent at the meeting.