Market Rally Stalls Late in Session; Dow Sheds 8 Points
A mild stock rally fizzled late today, overwhelmed by computerized selling strategies and anxiety that has afflicted investors since the historic market collapse exactly six months ago.</br></br>The Dow Jones average of 30 blue-chip stocks, up more than 32 points at midafternoon, slid in the final hours and finished down 8.62 to 1999.50, back under the 2000 level for the first time in two weeks. Most broader market indices also fell.</br></br>"People are willing to venture into the market on a day-by-day basis, but not much longer," said Joseph Barthel, technical analyst at the Butcher & Singer Co. investment firm. "Without some sort of clarification, I think we're doomed to this type of whipsaw action."</br></br>The market strengthened through the early hours, largely because of sharply higher earnings reported by some leading companies that constitute the Dow average. A partial recovery in the slumping bond market also helped by easing interest rates, thereby making bonds a less attractive alternative to stocks.</br></br>But bonds weakened in the afternoon on renewed fears of inflation and fighting in the Persian Gulf. Traders said this helped provide an excuse to bail out of stocks and erase the day's gains.