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Tuesday, October 22, 2019  Spokane, Washington  Est. May 19, 1883
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News >  Nation/World

Inflation Jitters Snuff Stock Rally

By Associated Press

Stocks pulled back Monday as another inflation warning from the Federal Reserve quickly rattled the uneasy calm behind last week’s rally.

The Dow Jones industrial average fell 43.34 to 6,660.21, bouncing back over the final minutes from an abrupt afternoon slide of 86 points. The Dow added 310 points last week, recovering nearly half of the 700 points it lost over the prior month.

Broader stock measures also meandered through the lifeless session before turning sharply lower in the afternoon with the bond market, where interest rates rose following some cautionary remarks by a top Fed official.

Fed Vice Chair Alice Rivlin warned that persistent strength in consumer demand could aggravate inflationary pressures at the nation’s factories.

The remarks heightened fears the central bank will try to slow borrowing and spending with a sharp increase in interest rates.

“We had a stabilization when bond yields moved down (last week),” said Peter Anderson, chief investment officer for the IDS Advisory Group in Minneapolis. “That allowed an oversold stock market to rally. But the rally wasn’t very impressive, and I think we’re setting up to roll down again.”

Declining issues outnumbered advancers by a 9-to-5 margin on the New York Stock Exchange, where volume totaled just 393.65 million shares as of 4 p.m., down from Friday’s fairly modest 468.17 million.

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


AT&T;, down 5/8 at 33.

The nation’s biggest long-distance company reported an expected 24 percent drop in first-quarter profits.

Exxon, down 1/8 at 53-3/8.

Higher crude and gas prices helped the nation’s biggest oil company increase profits 15 percent in the first quarter, beating analyst expectations.


Goulds Pumps, up 13-5/16 at 36-3/16.

ITT Industries agreed to acquire Goulds for $815 million, or $37 a share, in cash. ITT Industries will also assume $119 million in debt from Goulds.

AutoImmune, down 9-1/4 at 4-1/2.

The company reported disappointing results from its clinical trials of Myloral, an experimental drug designed to reduce neurologic attack rates in patients with multiple sclerosis.

Electrosource, up 1 at 6-3/4.

The company received a contract to develop a battery for a hybrid-electric version of the Swatchmobile, a two-passenger vehicle being developed by Daimler-Benz and SMH Automobile of Switzerland.

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