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Stocks Pull Back; Dow Down 57

August 20, 1998

NEW YORK (AP) _ Stocks pulled back again today, with a sudden flurry of bad news in the computer-chip sector threatening to disrupt the market’s technology-led rebound.

At 3 p.m. on Wall Street, the Dow Jones industrial average was down 57.93 at 8,635.35 after sliding as much as 80 points earlier in the afternoon. The Dow slipped 21 points on Wednesday after gaining 290 points the prior two days.

Broad-market indicators also extended Wednesday’s downturn.

Semiconductor stocks led the decline as Merrill Lynch lowered its investment rating on Intel, down 3 47/64 at 85 53/64, and Texas Instruments, down 2 1/4 at 58 1/4.

The downgrades came a day after a series of discouraging business updates from chipmakers Analog Devices, LSI Logic and National Semiconductor, which fell 2 3/16 at 11 7/16 following late Wednesday’s warning by that company.

The Standard & Poor’s 500 index was down 3.99 at 1,094.07, and the technology-heavy Nasdaq composite index was down 9.79 at 1,832.89.

Declining issues outnumbered advancers by a 7-to-4 margin on the New York Stock Exchange, where volume came to 504.52 million shares, up slightly from Wednesday’s pace.

The NYSE composite index was down 2.54 at 547.51, and the American Stock Exchange composite index was down 2.45 at 663.14.

Overseas, Tokyo’s Nikkei stock average fell 0.1 percent, Frankfurt’s DAX index fell 1.9 percent and London’s FT-SE 100 fell 0.5 percent.

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