Rate, Profit Fears Send Stocks Down
Stymied by concerns about interest rates and earnings, investors pushed stock prices lower today, focusing again on technology issues.</br></br>The latest blow for the high-tech sector was Merrill Lynch's downgrading of the fiber-optic industry, which had been seen as the last solid performer in the industry. And investors were still shaken by the renewed prospect of higher interest rates that would further cut into corporate earnings.</br></br>Stock prices fluctuated in a narrow range for much of the day as the market sought a direction. By late afternoon, investors found a path: downward.</br></br>The Nasdaq composite index fell 133.61 points to close at 3031.88, and the Standard & Poor's 500-stock index was off 17.49 at 1372.32, according to preliminary calculations. Both indexes have a large representation of high-tech stocks. The Dow Jones industrial average finished down 51.57 at 10,656.03.</br></br>"You're still seeing a lack of deep conviction on the part of the bulls," said Ronald J. Hill, investment strategist for Brown Brothers Harriman & Co. "So the market seems to be driven by the news of the day."