Investors went on the defensive yesterday, selling shaky technology stocks and loading up on steadier pharmaceutical, utility and oil concerns that do better in a slowing economy.
The latest wave of tech-selling was spurred by disappointing earnings reports from Amazon.Com, WorldCom and Nokia. Meanwhile, blue-chips were helped by a benign inflation reading.
Among broader market indicators, the technology-heavy Nasdaq composite index was down and the Standard and Poor's 500 was down 2.80 at 1,449.62.
Declining issues outnumbered advancers by a narrow margin on the New York Stock Exchange, where volume came to 1.15 billion shares, down from Wednesday's pace. The Russell 2000 index of smaller companies was down 12.18 at 501.63.
"The stocks that are doing well are defensive ones," said Hugh Johnson, chief investment officer at First Albany Corp. "Drugs, health care, insurance, utilities, soft drink - those stocks that tend to post good earnings regardless of what happens to the economy."
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