NEW YORK (AP) — Wall Street drifted lower yesterday after a mixed housing report and a disappointing outlook from DuPont gave investors incentives to cash in profits after the previous session’s big advance.
Analysts said many investors were taking a wait-and-see attitude before the upcoming earnings period. Trading also was choppy due to technical factors in advance of Friday’s quadruple-witching day, the quarterly expiration of index futures and options as well as individual stock futures and options.
“There’s not much driving the market in either direction today,” said Hugh Johnson, chief investment officer at First Albany Corp. “It’s a quiet period before an important period — the third-quarter announcement season” later this month.
Analysts also said many investors might have been preoccupied with the mounting criticism of New York Stock Exchange Chairman Dick Grasso and his pay package, leading to lighter trading. Todd Clark, head of listed equity trading at Wells Fargo Securities, said the controversy about Mr. Grasso was a distraction, but he also said it had not affected prices.
The NYSE board held an emergency meeting yesterday to discuss Mr. Grasso and the widespread criticism of his $140 million pay package, according to a source close to the board, who spoke on the condition of anonymity.
The Dow Jones Industrial Average closed down 21.69, or 0.2 percent, at 9,545.65, having gained 118 points on Tuesday.
The broader market also finished modestly lower. The Nasdaq Composite Index declined 4.15, or 0.2 percent, to 1,883.10. The Standard & Poor’s 500 index fell 3.35, or 0.3 percent, to 1,025.97.
After sending stocks higher since mid-March, trading has been choppy in recent days as investors study economic data closely for evidence of a strong rebound. Tuesday’s rally followed the Fed’s decision to keep rates stable and its statement suggesting it would keep interest rates low.
“People were relieved that the Fed was not going to raise rates for a while,” said Todd Leone, managing director of equity trading at SG Cowen Securities. “Tobacco stocks are the biggest gainers, but the rest of the market is kind of quiet.”
Decliners included DuPont, which dropped $1.50 to $42.47 after the company said its 2003 earnings would be at the lower end of estimates.
Energy stocks also took a hit after crude oil prices dropped to a four-month low. Exxon Mobil Corp. decreased 87 cents to $36.84, while ChevronTexaco Corp. declined 73 cents to $72.27.
Best Buy Co. fell $1.18 to $51.48 although the electronics retailer reported earnings that met expectations.
But Altria Group Inc. climbed $4.19, or 10.4 percent, to $44.65 after the Illinois Supreme Court ruled that a lower court must reinstate a reduced $6 billion bond required for its tobacco unit Philip Morris to appeal a legal defeat.
R.J. Reynolds Tobacco jumped $4.67, or 13.7 percent, to $38.86, after the second-largest cigarette maker said it will cut about 2,600 jobs, or 40 percent of its work force.
Declining issues outnumbered advancers 7-6 on the NYSE. Volume was light at 1.31 billion shares, compared with 1.37 billion traded Tuesday.
The Russell 2000 index, which tracks smaller-company stocks, fell 0.56, or 0.1 percent, to 515.10.
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