US stocks fall in lacklustre session
Another lacklustre trading session sent stocks lower on the New York exchange today despite a wave of corporate deals that underscored the economy’s overall health.
Technology issues led the selling as investors moved to less risky stocks.
Investors appeared focused on the lingering disappointment over the country’s slow job growth, even though a fresh wave of acquisitions showed corporate America was still betting on a growing economy.
The government on Friday reported that the nation’s jobs total grew by just 21,000 in February, leaving the unemployment rate stuck at 5.6%.
“If nothing else the jobs figure shows that companies are keeping costs down, and that’ll help earnings,” said Peter Dunay, chief market strategist at Wall Street Access. “At least in the near-term, corporate profitability will be a key driver in this market.”
The Dow Jones industrial average lost 66.07, or 0.6%, to 10,529.48, hitting its lowest level since Feb. 5.
Broader stock indicators also fell. The Standard & Poor’s 500 index dropped 9.66, or 0.8%, to 1,147.20, and the Nasdaq composite index was down 38.85, or 1.9%, at 2,008.78.
Some investors may have felt that tech stocks, which drove the 2003 rally, were overvalued, especially with mixed outlooks on 2004 sales, analysts said. That moved investors to more defensive positions in large-cap, blue chip stocks.
“What you’re seeing here is a move out of technology, led by semiconductors, and into defensive stocks,” said Michael Sheldon, chief market strategist at Spencer Clarke LLC. “There’s nothing else pushing the market right now. We’ve run out of gas.”
BellSouth Corp announced it would sell its stake in 10 Latin American wireless operations to Spain’s Telefonica SA for 4.2 billion dollars in cash and 1.5 billion dollars in assumed debt. The deal will help BellSouth as Cingular Wireless, a joint venture with SBC Communications Inc, prepares its 41 billion dollar acquisition of AT&T Wireless Services Inc.
BellSouth shed 4 cents to 28.80 dollars, AT&T Wireless was down 12 cents at 13.44 dollars and SBC rose 13 cents to 25.15 dollars.
Eastman Kodak Co dropped 97 cents to 26.82 dollars. The film and imaging company said it will buy two product lines from German manufacturer Heidelberger Druckmaschinen AG for up to 150 million. Dollars
The board of Martha Stewart Living Omnimedia Inc. was to meet today to plot the company’s course after its founder was convicted Friday of obstruction of justice. Stewart herself met with probation officials.
After dropping more than 22 percent late Friday after the verdict was announced, Martha Stewart Living fell 96 cents, or 8.8%, to 9.90 dollars.
Declining issues outnumbered advancers by a 4-to-3 ratio on the New York Stock Exchange, where volume was light.
The Russell 2000 index of smaller companies lost 7.03, or 1.2%, to 592.51.
