Stocks Pull Back After Early Gains Evaporate

Stocks took another rollercoaster ride Wednesday, flirting with new highs only to take another perilous plunge as jittery investors reacted hastily to some mildly unsettling developments.

The Dow Jones industrial average, which lost nearly 200 points on Monday and then gained more than 150 on Tuesday, seesawed from a 54-point gain to a 129-point loss before closing at 7,689.98, down 68.08.

Broader stock measures also gyrated through the heavily traded session, turning sharply lower in the afternoon as interest rates began to climb in the bond market. Monday’s sell-off was also fueled by a small jump in interest rates in the bond market.

“The market has just been an automatic yo-yo since Monday,” said Robert Stovall, president of Stovall/Twenty-First Advisers. “The traders have twitchy trigger fingers, and they’re ready and willing to sell whenever some news or rumors come along.”

Declining issues outnumbered advancers by a 6-to-5 margin on the New York Stock Exchange, where volume was heavy at 603.02 million shares as of 4 p.m., the third-highest tally of 1997 and well above Tuesday’s 542.65 million.

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

NYSE

Micron Technology, up 1-11/16 at 42-5/8.

Merrill Lynch released a report saying Micron could become the lowest-cost producer of next-generation 64-megahertz dynamic random access memory chips, the Dow Jones News Service reported.

Ply Gem Industries, up 1-3/4 at 18.

Atrium agreed to buy Ply Gem, a maker of building and home-improvement products, for $482 million, including assumed debt. Ply Gem shareholders will receive $18.75 a share. Atrium is a window and door maker controlled by the Dallas-based investment firm Hicks, Muse, Tate & Furst.

NASDAQ

Liposome, down 15-1/4 at 9-9/16.

The biotech company reported disappointing results in its clinical testing of Ventus, a drug designed to treat acute respiratory distress syndrome, or ARDS. Liposome is based in Princeton, N.J.

3Com, down 1-3/8 at 48-3/8.

The networking concern posted solid results for its fourth quarter, meeting expectations, but many investors had hoped late Tuesday’s report would beat forecasts.

Elcom International, up 2 at 7.

The software developer’s board approved a plan to hire an investment bank to advise on a possible sale or merger. Elcom, of Norwood, Mass., said the adviser would also help evaluate strategic financing options.