Two-Week Rally in Stocks Halts Despite Strong Advance by Bonds
The stock market's two-week rally was snapped yesterday as prices eased in sluggish trading.</br></br>Stock prices fell despite a substantial advance in the bond market. The Dow Jones Industrial Average fell more than 12 points just after the opening bell, then recovered slowly throughout the day to close off 6.61 at 1862.91.</br></br>Standard & Poor's 500-stock index fell 0.87 to 246.51, and the New York Stock Exchange composite index dropped 0.41 to 141.91. Big Board volume shrank to 109.3 million shares from 112.8 million shares Monday.</br></br>Although the broad market indexes were lower, declining stocks led advancing issues only 863 to 760. Utility issues were strong, and the Dow Jones Utility Average moved up 2.25 to 213.38, a record.</br></br>Bond prices rose sharply yesterday on news that the gross national product grew at a 0.6% rate in the second quarter, a downward revision from the 1.1% pace originally reported last month. Wall Street analysts and economists said lower interest rates and further declines in the value of the dollar are needed to revive the manufacturing sector. Some said they expect the GNP report will pressure the Federal Reserve System to lower interest rates.