Stocks slide as eyes are on Greenspan testimony

 

Stocks were mixed yesterday as Wall Street focused on congressional testimony by Federal Reserve chairman Mr Alan Greenspan about the economy, interest rates and high stock prices.

Declining issues led advances 17 to 12 on active volume of 766 million shares on the New York Stock Exchange.

The technology-heavy Nasdaq composite index jumped 34.34 points to 2,376.35 after Morgan Stanley made bullish comments about some big-name Internet stocks.

Mr Greenspan said the economy was in great shape but the Fed stands ready to quickly move on interest rates to safeguard the expansion.

The Fed chief made the comment on the first of two days of Humphrey-Hawkins testimony - named after the sponsors of a 1978 law setting out the Fed's mandates - before Congress. Mr Greenspan returns today to wrap up his testimony before the House banking committee.