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Stocks Move Lower; Dow Off 78.47

January 7, 1998

NEW YORK (AP) _ Stocks fell this morning as a profit warning from the technology group and a rocky day on several Asian markets aggravated jitters over how much U.S. companies are being hurt by the economic crisis overseas.

At 11 a.m. on Wall Street, the Dow Jones industrial average was down 78.47 at 7,827.78.

Broad-market indicators were also extending Tuesday’s slide, which sent the Dow 72 points lower even as a key interest rate set a new record-low for the second straight day in the bond market.

With high-season for company reports on fourth-quarter profits just a week away, investors were unnerved by late Tuesday’s warning by Atmel, a semiconductor company, that many of its Asian customers had been unable to secure credit to pay for shipments that were scheduled for December.

Further underscoring the uncertainty overseas, Hong Kong’s main stock market index tumbled nearly 6 percent today and several other markets in Southeast Asia also fell as various currencies in that region sank to new lows. But the renewed turmoil didn’t rattle financial markets in Japan and South Korea, where share prices rose.

In U.S. trading, declining issues outnumbered advancers by more than a 2-to-1 margin on the New York Stock Exchange, where volume came to 190.05 million shares, about even with the brisk pace of the previous two sessions.

The Standard & Poor’s 500 list was down 9.75 at 956.83, and the NYSE composite index was down 4.33 at 503.00.

The Nasdaq composite index was down 17.67 at 1,562.47, and the American Stock Exchange composite index was down 2.58 at 672.51.

Overseas, Tokyo’s Nikkei stock average rose 0.9 percent. In afternoon trading, Frankfurt’s DAX index was up 0.9 percent and London’s FT-SE 100 was down 0.2 percent.

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