Dow Retreats As Trade Gap Widens

Stocks turned in a mixed performance Thursday, as blue chips languished amid worries about the U.S. dollar and a huge June trade deficit while technology issues continued to shine.

Both the Nasdaq Stock Market and American Stock Exchange had record-setting days.

Traders once again fled to technology stocks, which are alluring to investors jittery over how corporate earnings will fare if the dollar’s recent rally turns into a prolonged rise. A rising dollar makes American goods more expensive to buyers overseas and could hurt exports.

Lower-than-expected quarterly earnings from Deere Co., the leading farm equipment manufacturer, raised fears of weak profits at other big industrial concerns.

The Dow Jones industrial average fell 8.45 to 4,630.63.

Advancers led decliners by 10 to 9 on the Big Board. Volume on the floor of the NYSE was 354.16 million shares as of 4 p.m. Eastern time vs. 390.08 million shares Wednesday.

Dollar worries lingered though the U.S. currency slipped in foreign exchange markets. Concerns about the widening U.S. trade gap and hints that the market could be in the midst of a pullback set a negative tone that persisted throughout the day for blue chips.

Some of the stocks that moved substantially or traded heavily Thursday:

NYSE

Navistar International Corp., up 1/8 to 13-1/8. The machinery manufacturer’s third-quarter earnings doubled from last year’s level, exceeding analysts’ expectations.

Deere Co., down 2-1/2 to 83-3/4. Third-quarter earnings were up 14 percent, well below analysts’ expectations.

General Dynamics, up 3 to 52-1/8. The company announced plans to acquire Bath Iron Works, a privately-owned shipyard that builds combat ships for the Navy, for $300 million in cash.

CBS Inc., up 1-3/8 to 81-3/8. Banking sources said Westinghouse has lined up more than enough financing for its proposed $5.4 billion acquisition of the broadcast company.

IBM, up 1-1/4 to 113-5/8. The computer maker cut prices of 40 desktop computers sold to business by an average of 16 percent.

NASDAQ

Microsoft, up 3/8 to 99-1/8. The software company introduced an Internet browser for Windows 95.

AMEX

Turner Broadcasting System Inc., down 1/2 to 23-1/4. Sources said the company has scheduled a meeting on chairman Ted Turner’s efforts to top Westinghouse’s $5.4 billion cash offer for CBS.