Jittery Investors Drive Stock Prices Lower
The stock market gyrated for the fourth straight session Thursday before finishing modestly lower as investors grew increasingly leery of next week’s key economic developments.
The Dow Jones industrial average fell 35.73 to 7,654.25, but only after sliding from a 40-point morning gain to a 96-point loss before recovering over the final hour.
The blue-chip barometer has endured swings of more than 100 points every day this week, with investors selling at the first sign of trouble and buying back in as soon as prices start to look enticing.
“There’s a lot of nervous money in the market because investors can’t quantify what’s going to happen next week,” said Robert Froehlich, chief investment strategist for Kemper Funds in Chicago, referring to both the major economic news expected and political factors such as the impending Chinese takeover of Hong Kong.
“You’re getting these overreactions because no one knows how to place their investment bet,” said Froehlich. “You better not take you eye off the screen for a matter of minutes. The volatility is unbelievable.”
Declining issues outnumbered advancers by a 10-to-9 margin on the New York Stock Exchange, where volume totaled 499.78 million shares as of 4 p.m., down considerably from Wednesday’s hectic pace.
Some of the stocks that moved substantially or traded heavily Thursday:
NYSE
Rhone-Poulenc, up 6-3/16 at 42-5/16.
Rhone-Poulenc Rorer, up 11-9/16 at 91.
Rhone-Poulenc, the French parent of U.S. drugmaker Rhone-Poulenc Rorer, is considering a bid to buy the remaining third of RPR for $4.3 billion, or $92 a share.
Russell, down 2 at 28-3/8.
The sportswear maker expects to report disappointing second-quarter profits. Russell, based in Alexander City, Ala., said more than half the earnings shortfall is the result of unfavorable conditions in its licensed products business.
Pier 1 Imports, up 9/16 at 26.
The home furnishings retailer announced plans to split its stock 3-for-2 and increase its dividend 30 percent.
NASDAQ
UroMed, up 1-9/16 at 4-1/4.
Prudential Insurance Co. of America and Oxford Health Plans decided to provide reimbursement for UroMed’s continence care products.
Zag Industries, down 5-7/8 at 8-7/8.
The Israeli manufacturer of plastic home improvement products warned that it expects to post disappointing results for the second quarter. Zag said late Wednesday it was hurt by delays in the introduction of new products and tightened pricing pressure, mainly in Europe.