Stocks Drop as Investors Show Concern Over Deficit: Dow Off 43.77 Points; Dollar Also Declines
NEW YORK, Nov. 19ÛÓStocks slumped today in what analysts called a show of exasperation with the failure of Washington negotiators to agree on a budget-deficit reduction one day before automatic cuts take effect. The dollar also edged lower.</br></br>The bickering between the Reagan administration and Congress on an issue that played a role in the Oct. 19 stock crash dismayed investors and convinced some that any deficit reduction package would be superficial, analysts said.</br></br>ÛÏI think the market is showing a high degree of disgust with the inability of the budget negotiators to come up with anything after 3Vz weeks of effort,Û said Alfred Goldman, a market strategist at A.G. EdÛª wards & Sons Inc., a St. Louis-based investment firm.</br></br>The Dow Jones industrial average dropped 43.77 points to 1895.39, putting the widely watched indicator under the 1900 level for the first time in a week. Broader market barometers also declined sharply.</br></br>Volume on the New York Stock Exchange totaled a relatively light 157.14 million shares, an indication that many investors were waiting for a budget-deficit reduction pact before they decided their next move. WednesdayÛªs volume was 158.27 million shares.