Market Retreats as Rumors Spur Trading
NEW YORK, April 18-The stock market retreated in active trading today in a session punctuated by unfounded rumors.</br></br>The Dow Jones average of 30 industrials, seldom ahead throughout the day, lost 8.06 to 1,156.51, offsetting its 4.29-point gain on Tuesday.</br></br>Prices of some long-term Treasury bonds tumbled nearly a point, or $10 for each $1,000 in face value, and short-term interest rates rose.</br></br>But many Wall Streeters are said to remain skeptical that the economy will soon slow to the point where rates actually fall, especially if the U.S. budget deficit remains unchecked.</br></br>ÛÏThe major overhang is the question of whether rates have peaked; if the bond market says Û÷no,Ûª the stock market canÛªt attack 1,200 [in the Dow Jones industrial average], which is the big resistance level,Û said Larry Wachtel, first vice president of Prudential-Bache Securities Inc.