Sagging Bond Prices Drag Dow Down 4
The Dow Jones industrial average fell 3.78 points to 3240.06. Volume was 205 million shares, compared with 220 million Thursday on the New York Stock Exchange. Advancing issues narrowly led declining ones.</br></br>On the Nasdaq market, stocks extended Thursday's rally as investors continued to select technology stocks on expectations of an economic recovery. The Nasdaq rose 2.74 points to close at 616.82.</br></br>On the NYSE, profit-taking was a big feature after a strong rise of nearly 21 points Thursday. Slumping bond prices were the spur. "The market is in a consolidation. It is still working off an overbought condition," said Philip Roth at Dean Witter Reynolds Inc.</br></br>In a report that moved the bond market, the Labor Department said the jobless rate slipped to 7.4 percent in October, its lowest level in six months, even though only a smattering of jobs were created. Analysts said the jobs data fed speculation that the Federal Reserve will not lower interest rates soon.</br></br>That caused the price of the Treasury's benchmark 30-year bond to fall 25/32 point, or about $7.81 per $1,000 in face amount. Its yield was 7.76 percent, up from 7.69 percent late Thursday.