Mixed Reports Send Stocks Down
Blue-chip stocks edged lower today because of what investors felt were mixed economic signals on the threat of inflation. The Dow Jones industrial average fell 13.79 points to close at 5993.23 after having been up 21 points early in the day.</br></br>Broader measures also retreated, following bond prices, which fell back after an opening advance that briefly brought long-term interest rates toward their lowest levels in nearly seven months. But the technology-laden Nasdaq Stock Market posted modest gains as investors looked for bargains after several days of profit-taking in leading computer-related shares.</br></br>Stocks started the day rising with bond prices, which extended Tuesday's rally after the Commerce Department reported that economic growth slowed dramatically during the third quarter and that consumer spending dipped to its weakest pace in five years.</br></br>But bonds slipped after a subsequent report showed some stronger-than-expected activity in home sales toward the end of the third quarter. The price of the Treasury's benchmark 30-year bond fell 5/16 points, or $3.125 per $1,000 face value. The yield rose to 6.70 percent from 6.68 percent late Tuesday.</br></br>Many analysts interpreted the news of a modest 2.2 percent increase in third-quarter gross domestic product as confirmation that business activities have slowed enough to contain worrisome inflation indications, such as rising payroll costs, a key factor in determining a product's price.