" writeme += "

" writeme += "" writeme += "" writeme += "" writeme += "

" playme.document.write(writeme); playme.document.close(); if((navigator.appName == "Netscape") && (navigator.appVersion.substring(0,1) >= "3")) {playme.focus();} if((navigator.appName == "Microsoft Internet Explorer") && (navigator.appVersion.substring(0,1) >= "4")) {playme.focus();} if (playme.opener == null) { playme.opener = self; } } function play(vid,neth,netl,realh,reall) { var cm=GetCookie("playbar"); if (cm != null) { //if (cm=="nh" && neth=="t") { cm="hi.asx"; //if(aol||nstr||iebug) { //} else { // showvid('asf',vid+cm); //} } else { if (cm=="nh" && neth!="t") { this.sec=1; pbw(vid,neth,netl,realh,reall); } } if (cm=="nl" && netl=="t") { cm="lo.asx"; //if(aol||nstr||iebug) { //} else { // showvid('asf',vid+cm); //} } else { if (cm=="nl" && netl!="t") { this.sec=1; pbw(vid,neth,netl,realh,reall); } } if (cm=="rh" && realh=="t") { cm="hi.rmm"; if(aol||iebug) { } else { showvid('rm',vid+cm); } } else { if (cm=="rh" && realh!="t") { this.sec=2; pbw(vid,neth,netl,realh,reall); } } if (cm=="rl" && reall=="t") { cm="lo.rmm"; if(aol||iebug) { } else { showvid('rm',vid+cm); } } else { if (cm=="rl" && reall!="t") { this.sec=2; pbw(vid,neth,netl,realh,reall); } } } window.onerror = MSIE; // -->

Thu, Jun 15, 2000
Register today for a free financial forecast
fundsnav.gif (2552 bytes)

Account Management
Site Help
Market Wire Home
Fox News Online Home
Live Ticker
Indices Chart
Click on index
for more information
 Recent Stories
   Euro Jitters Drive Tokyo, Hong Kong Down
   Legacy Currencies Eclipsed By Euro Debut
   European Stocks Roar As Euro Makes Winning Debut
 Related Sites
  Fox Market Wire Forums:
Which Way Do You Feel the Market is Headed?

 Other Indices
   International Indices
   Currency Exchanges
   Russell 2000, Treasury Yields and More
 Additional Info
   Brief History
Dow Basics
   The New Circuit Breakers on
Wall Street
   Dow History
On the Dow
   Computing the
Dow Average
Fed Warning Erases Early Stock Gains
Associated Press
NEW YORK — Stocks erased substantial early gains this afternoon as investors, made nervous by a warning from a Federal Reserve official that the economy could not continue to grow at its current pace, sold their holdings and took profits.

As the market was ready to close the first trading session of the new year, the Dow Jones industrial average was up 2.84 at 9,184.27. The blue-chip index had gained as much as 168.64 to 9,350.07 this morning, threatening to challenge its record closing high at 9,374.27 last Nov. 23. The blue-chip index finished 1998 with a gain of 16.1 percent — the fourth straight year that it rose 15 percent or more.

Broader stock indexes turned mixed this afternoon after also putting in a strong morning.

Stocks opened higher as buyers descended at the opening bell, hoping to profit from investors putting year-end bonuses and cash from other sources to work in the new year.

But they retreated in early afternoon following a speech by Atlanta Federal Reserve Bank President Jack Guynn.

Addressing the Atlanta Rotary Club, Guynn warned that the "institutionalization of unrealistic expectations" could have a negative impact on the U.S. economy. He warned that the economy's recent performance is exceptional, and that "consumers, businesses, investors and policymakers should not proceed as though" it could keep growing at its current pace. "Such a delusion could have real repercussions for the U.S. economy."

Barry Hyman, senior equity analyst at Ehrenkrantz King Nussbaum, said investors are also worried that Brazil's new government, which met for the first time today, will fall short of the ambitious economic goals it agreed to in order to receive a $41.5 billion credit line from the International Monetary Fund and other lenders.

If the Brazilian government fails to comply meet the goals, "that immediately brings to mind the specter of the devaluation of the Brazilian real, which is extremely negative for the markets," Hyman said.

Computer stocks opened stronger but gave up their gains, ending mixed. America Online shares fell sharply on big volume on the New York Stock Exchange. Traders said that was because of a last-minute surge to 160 on Thursday. The stock was added Friday to the Standard & Poor's 500 composite index.

Transportation stocks were lower as oil prices gained. The Dow Jones transportation index lost nearly 1 percent.

Investors brushed off a new report showing a slowing economy. The National Association of Purchasing Management said manufacturing activity slowed in December for the seventh straight month, declining at a faster rate than economists had expected.

The NAPM's monthly index of business activity fell to 45.1 percent last month, down from 46.8 percent in November. Any reading under 50 percent is a sign of contraction in the industrial sector.

More Marketwire More MarketWire News Top of Page

© 2000, News Digital Media, Inc. d/b/a Fox News Online
All rights reserved. Fox News is a registered trademark of 20th Century Fox Film Corp.
Data from Thomson Financial Interactive is subject to the following Privacy Statement
© 2000 Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten, or redistributed.