Wall Street report: Tuesday close
STOCKS fell for the fourth straight session as investors took gains from the market's lofty rise this year, offsetting the effects of an upbeat brokerage call on General Electric.
Growing concern over investigations into abuses by mutual funds also kept money on the sidelines of the market, traders said, dampening demand for stocks.
Major market gauges opened higher and then weakened. The blue-chip Dow Jones industrial average closed down 86.67 points, or 0.89%, at 9,624.16. The broader Standard & Poor's 500 Index closed down 9.48 points, or 0.91%, at 1,034.15. The technology-laced Nasdaq composite Index fell 27.86 points, or 1.46%, to 1,881.75.
Since hitting 2003 lows in March, stocks have surged, leaving some investors worried that prices already reflected much of the US economic rebound. The market also felt pressure from disenchanted investors as deepening investigations roil the $7 trillion mutual fund industry.
The market's fourth straight day of losses came as security concerns continued to ripple across the globe after bomb attacks in Turkey on Saturday and threats of more attacks from al Qaeda.
Stocks were further weakened by the US dollar falling to record lows against the euro after the US commerce Department said it would limit imports of Chinese clothing, fuelling fears that protectionism could undermine a nascent US recovery.
Boeing was the Dow's biggest loser after reports that Australian airline, Qantas, would buy planes from Boeing's fierce rival, Airbus. Boeing shares fell 91 cents, or 2.3%, to $38.83, down from year highs reached last week.
General Electric, the Dow's biggest gainer, was the most heavily traded stock on the NYSE, heading up 63 cents, or 2.2%, to $28.44. Investment house Merrill Lynch upgraded its investment rating on the conglomerate to 'buy' from 'neutral,' predicting a resumption of double-digit earnings growth for the firm in 2005.
Shares of fabric and crafts retailer Jo-Ann Stores tumbled $4.55, or 18.5%, to $20.07 as the largest percentage loser on the NYSE. The company reported higher third-quarter profit but cut its full year outlook, citing lower sales expectations.
