Dow Loses Ground In Quiet Session

Stocks finished Wednesday’s session mixed as investors bought issues which they believe can weather a downturn in the nation’s economy.

The Dow Jones industrial average edged 2.02 lower to close at 3,935.37, posting a single-digit loss for the second consecutive session after five days of gains. The blue chip index hovered close to unchanged all day.

Advancing issues had an 11-to-10 lead on decliners on the New York Stock Exchange. Big Board volume was moderate at 317.91 million shares as of 4 p.m., up from 314.61 million on Tuesday.

Stock investors were buying selectively among consumer and interestsensitive stocks, on the premise that economic growth is slowing and that the Federal Reserve may be finished tightening interest rates for a while.

“If there is a camp out there that thinks interest rates are headed higher, it’s a pretty small camp,” said Bill Allyn, director of listed equity trading at Jefferies & Co. in Short Hills, N.J.

Overseas, Japan’s Nikkei average fell 1.1 percent in overnight trading, while the DAX index in Frankfurt lost 0.2 percent. London’s FT-SE 100 lost 0.1 percent.

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

NYSE

WMX Technology fell 1/8 to 27.

WMX tumbled 1 Tuesday after the environmental services company reported fourth-quarter earnings of 42 cents a share, up from 34 cents a year ago but shy of analysts’ estimates.

Sears rose 2 1/4 to 48.

The retailing and insurance giant reported a 26 percent jump in fourthquarter profit.

AT&T fell 1/4 to 51 1/8.

CNBC correspondent Dan Dorfman said there were rumors of a takeover of Cablevision by AT&T. Cablevision said it does not respond to market rumors. A call to AT&T was not returned.

Burlington Northern rose 2 to 52 3/4.

Santa Fe Pacific rose 1/4 to 19 3/4.

Shareholders at both companies approved a $4 billion merger agreement. Smith Barney upgraded Burlington to “buy” from “neutral.”

NASDAQ

Intel rose 3 5/8 to 76 5/8.

Merrill Lynch named the chipmaker’s stock as its focus stock of the week.

AMEX

Telephone & Data Systems rose 7/8 to 44 3/4.

The telephone company said fourth-quarter profits rose to 32 cents per share from 11 cents a year ago, beating estimates of 20 cents.