Mexican Crisis Rattles Wall Street

Stocks finished a volatile session on Wednesday mostly lower, as investors took profits amid concerns that Mexico’s financial woes would spread to U.S. companies.

The Dow Jones industrial average closed down 4.71 at 3,862.03, nearly erasing a more than 25-point loss posted earlier in the session.

The blue chip index opened higher after the Labor Department said consumer prices rose a reasonable 0.2 percent in December, following a similar wholesale price increase announced Tuesday.

Most analysts, however, do not believe this week’s inflation data will dissuade the Federal Reserve from further tightening interest rates at its policy-making meeting late this month.

Declining issues outnumbered advancers by 1,182 to 1,052 on the New York Stock Exchange, with 703 unchanged. Big Board volume totaled 346.28 million shares, down from 351.28 million Tuesday.

Traders said U.S. stocks were also under pressure from investors taking profits.

Some of the stocks that moved substantially or traded heavily Wednesday: NYSE

Telefonos de Mexico’s American depositary receipts rose 2 to 35 3/8.

Grupo Televisa ADRs rose 3 1/4 to 25.

Grupo Tribasa ADRs rose 1 3/4 to 11 1/2.

Mexico Fund rose 1 3/8 to 19 1/4.

Empresas ICA ADRs rose 1/2 to 10 1/8.

The American depositary shares of Mexican companies finished higher, recouping sharp losses early in the day, as the Mexican bolsa staged a comeback and finished up more than 2 percent.

Citicorp fell 1 3/8 to 40 3/8.

J.P. Morgan fell 1 3/8 to 56 3/8.

U.S. banking issues declined on concerns that Mexico’s financial crisis would spread throughout Latin America and reach into the U.S. banking system.

Motorola fell 1 to 60 3/4.

The stock climbed 2 points on Tuesday after the company reported record sales in the fourth quarter and for the full year.

NASDAQ

Intel fell 3/8 to 66 1/4.

Semiconductor stocks were lower after the semiconductor industry group said its December book-to-bill ratio rose to 1.05 from 1.04 a year earlier.

AMEX

Royal Oak Mines rose 1/4 to 3 3-16.

Pegasus Gold rose 3/8 to 11 3/4.

Gold stocks rose with gold prices.