Sudden Sell-Off Causes Stock Prices To Tumble

Stocks closed lower Wednesday following a sudden late-afternoon sell-off that disrupted an otherwise lackluster day.

Analysts said computer-driven selling probably contributed to the sharpness of the decline, perhaps related to portfolio adjustments by big investors ahead of Friday’s expiration of options.

More fundamentally, investors remained concerned that a downward correction may be in the offing from the inflated stock prices of the past several months.

The Dow Jones industrial average fell 47.33 points from Tuesday’s record to close at 7,020.13.

Declining issues barely outnumbered advancers on the New York Stock Exchange, where volume was 519.27 million compared with 474.07 on Tuesday.

Peter Cardillo, director of research at Westfalia Investments in New York, attributed some of the stock sell-off to weakness in the bond market.

Bond prices fell Wednesday despite good news from the government on inflation that would normally be bullish.

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

NYSE

Medtronic Inc., down 3-1/4 to 68-1/8.

The Minneapolis-based maker of heart pace-makers and other medical devices reported weaker than expected quarterly earnings. Prudential Securities downgraded the stock to hold from buy.

Fluor Corp., down 9 to 65-7/8.

The Irvine, Calif.-based construction engineering firm missed analyst expectations for fourth-quarter profits. The company blamed cost overruns.

York International, down 6 to 44-5/8.

The York, Pa., maker of heating, air conditioning and refrigeration equipment said restructuring expenses will hurt its 1997 profits.

NASDAQ

Centocor Inc., up 2 to 39-1/4.

The Malvern, Pa.-based biopharmaceutical company asked the Food and Drug Administration for permission to use its blood-clot busting drug ReoPro in additional applications involving coronary angioplasty.

Hadco Corp., down 8 to 46-1/2.

The Salem, N.H., maker of printed circuit boards said Tuesday it will offer 2 million new common shares. Alex. Brown & Sons lowered its rating on the stock to buy from strong buy.

RadiSys Corp., up 6-7/8 to 40-5/8.

An audit of the Hillsboro, Ore., maker of computer parts said its financial statements were proper with no irregularities. A former vice president had sued the company charging he was fired for pointing out an accounting discrepancy.

Zytec Corp., down 1-5/8 to 13-1/4.

The Eden Prairie, Minn., maker of power supplies for computers reported a decline in fourth-quarter earnings.