Renewed Rate Concerns Damp Early Rally as Industrials Gain 2.73
NEW YORK -- Continued interest rate concerns weighed on the stock market again, damping an early attempt to rally.</br></br>Stock prices started higher from the opening after a report that factory orders for durable goods fell more than expected in March. The weak economic report raised hopes again that the Federal Reserve would be encouraged to spur the economy by cutting rates soon.</br></br>But the market's advance quickly evaporated after Fed Chairman Alan Greenspan told the Senate Banking Committee that inflation is more worrisome now than it was in 1986. Mr. Greenspan was explaining why the discount rate is higher now than it was in 1986 when the economic environment was stronger than it is now.</br></br>The central banker's comments killed hopes for a rate cut and sent stock prices tumbling. Share prices drifted with narrow losses for the remainder of the day before climbing back near the close.</br></br>The Dow Jones Industrial Average ended with a 2.73-point gain at 2930.45. Standard & Poor's 500-Stock Index added 0.81 to 381.76, the New York Stock Exchange Composite Index rose 0.29 to 208.68, and the Dow Jones Equity Market Index added 0.65 to 356.42.