US Late Market Comment: NYSE Volume At 1.29B Shares

sg.biz.yahoo.com Friday March 7, 5:49 AM By Gaston F. Ceron Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--U.S. stocks retreated among concerns about the economy and with the shadow of Iraq still hanging over the market.

Worries about corporate results continued to weigh on investors, who were faced with poor retail-sales reports and an earnings warning from Raytheon. Shares of Raytheon fell 5.5%.

The Dow Jones Industrial Average shed 101.61, or 1.31%, to end at 7673.99. The Nasdaq Composite Index fell 11.48, or 0.87%, to 1302.92. The Standard & Poor's 500-stock index dropped 7.75, or 0.93%, to 822.10.

Retail-sales figures for the month of February weren't encouraging, as stores were hampered by the big blizzard that hit the East Coast last month. Shares of Sears Roebuck fell 3.5%, while shares of May Department Stores dropped 2.2%.

Regarding the overall market environment, "after all is said and done, what this is all about is the economy and earnings," said Hugh Johnson, chief investment strategist at First Albany in Albany, N.Y. "And the outlook for the economy and earnings is deteriorating. Oil prices remain so high, and as a result the outlook for the economy is getting gloomier."

A worse-than-expected report on weekly jobless claims also spooked investors, suggesting that employment conditions are weakening, Johnson added. But the economic picture remains muddy, as data on productivity and factory orders painted a more positive picture.

The strategist noted that all the attention that has been given to the Iraqi situation may be masking other problems for the market. "The buzz on Wall Street is that if Iraq gets put behind us the stock market . . . will do well," he said.

But even if the Iraqi standoff is resolved, "there is still North Korea and terrorism, there is still Venezuela," Johnson said.

On the New York Stock Exchange, there were 1,226 issues advancing, 2,027 declining and 189 unchanged.

NYSE volume totaled 1,287,877,770 shares, compared with 1,302,704,190 Wednesday.

The NYSE Composite Index was 4626.02, down 47.73. The average price per share fell 21 cents.