Stocks narrowly mixed on anthrax worries

AP Business WriterNEW YORK (AP) -- Renewed anxiety about the possibility of more terror attacks pressured Wall Street Thursday, resulting in a mixed finish for the market despite some better-than-expected results from Boeing.

Stocks fluctuated on fears the latest spate of anthrax cases will keep Americans at home and further hurt consumer spending, which accounts for two-thirds of the economy. Analysts said earnings reports, even the relatively strong ones, are providing little reassurance since companies have yet to say business is improvement.

"There's a fear this (anthrax scare) will really impede the consumer as far any spending going on, "said Charles Pradilla, chief investment strategist at SG Cowen. "While earnings are important ... they really pale in comparison to events like this.

"Especially when earnings still aren't anything to get excited about."

The Dow Jones industrial average closed down 69.75 at 9,163.22, according to preliminary calculations.

Broader stock indicators were mixed. The Standard & Poor's 500 index fell 8.48 to 1,068.61, but the Nasdaq composite index gained 6.37 to 1,652.71.

Thursday's selling recalled Wednesday's session, when the market was so concerned about the anthrax news it disregarded some relatively positive earnings from IBM and Intel.

Boeing fell 84 cents to $32.86 on third-quarter earnings a penny ahead of expectations that came with a warning that operations are likely to be weak in coming quarters.

The Dow was also dragged lower by AT&T, which fell 73 cents to $17.90, and ExxonMobil, which lost $1.08 to $40.40.

Two bellwethers scheduled to report earnings after the market closed fared somewhat better. Microsoft gained 77 cents to $56.80 in the regular session, while Sun Microsystems closed up 8 cents at $8.88.

The market remained uncertain a day after new anthrax exposures forced a temporary shuttering of Congress and after Federal Reserve Chairman Alan Greenspan warned of a dip in productivity because of the Sept. 11 terrorist attacks.

Third-quarter earnings were expected to be disappointing, and so far, most of the results have been in line with those predictions. Wall Street has taken the news well, but in the absence of any indications from companies that business is stabilizing or turning around, there has been little impetus for big moves.

"The market is trying to get its equilibrium back," said John Forelli, portfolio manager for the John Hancock Core Value Fund. "But there's no clear relief, political or earnings, that's going to propel this market forward."

Analysts also attributed some of the recent decline to an expected pullback from the market's rebound from the massive selloff that followed the attacks. By last week, all three major indexes had returned to levels not seen since before the assaults.

Although stocks have retreated somewhat since then, the Dow is still 11 percent above the lows for 2001 set last month. The Nasdaq is up 16 percent and the S&P 500, more than 10 percent.

Also Thursday, there was more economic data showing fallout from the Sept. 11 terror attacks. For the work week ending Oct. 13, new jobless claims increased by a seasonally adjusted 6,000 to 490,000, the Labor Department said.

Declining issues led advancers 2 to 1 on the New York Stock Exchange. Volume came to 1.25 billion shares, compared with 1.44 billion Wednesday.

The Russell 2000 index fell 3.43 to 421.06.

Overseas, Japan's Nikkei stock average dropped 2.6 percent. Stocks also fell in Europe. Germany's DAX index slipped 1.5 percent, while Britain's FT-SE 100 and France's CAC-40 each lost 1.7 percent.

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