Updated from 4:16 p.m. EDT
Stocks in New York took more losses Wednesday as continuing worries about the current interest rate environment kept the sellers in charge.
Dow Jones Industrial Average
was down 129.79 points at 13,465.67, and the
was off 13.57 points at 1517.38. The
lost 24.05 points to 2587.18. All the pullbacks equated to declines of around 0.9%.
Only five stocks, including
, escaped the damage on the Dow.
were the biggest drags, each dropping more than 2%.
The downturn marked the second consecutive rough session for U.S. shares. On Tuesday, stocks fell as bond yields rose and concerns mounted that the
doesn't have plans to ease in the immediate future.
Previously, the Dow surrendered 80.86 points to 13,595.46, and the S&P fell 8.23 points at 1530.95, breaking a four-day streak of record closes. The Nasdaq gave back 7.06 points to 2611.23.
Bonds steadied as the new day arrived, but the fears about rates carried over. The 10-year note was up 6/32 in price, yielding 4.97%, and the 30-year added 2/32 to yield 5.08%. Higher yields lead to jitters about liquidity and also make fixed-income securities more competitive against stocks.
Just a handful of economic data are being released this week, and that has given market forces the freedom to drive trading.
The latest report, revised government figures on productivity, showed a 1% gain in the first quarter, in line with expectations. That was down from the preliminary reading of 1.7% growth. At the same time, labor costs jumped 1.8%.
Meanwhile, the White House's Council of Economic Advisers is now predicting that gross domestic product will climb 2.3% from the fourth quarter of 2006 to the same period this year. The administration had been expecting a 2.9% expansion.
Globally, stocks were generally weaker. Tokyo's Nikkei and Hong Kong's Hang Seng each lost around 0.1% overnight. London's FTSE was down 1.4%, while Frankfurt's DAX plunged 1.9%. The Paris Cac fell 1.6%.
The European Central Bank, as had been expected, lifted its key interest rate by 25 basis points to 4%. The hike was the ECB's eighth in the last year and a half. At the same time, the bank's chief said the eurozone's inflation outlook for next year hasn't been altered.
After the move, the euro lost ground to the dollar, declining to $1.35 from $1.352 previously. However, the greenback was softer against other major currencies, including the yen and the pound.
Domestic corporate news was a bit on the slow side.
was up 0.3% after the
reported that Michael Dell is hoping to make a series of purchases that would help make the company stronger in computer services, rather than just hardware.
set plans to close down its Prudential Equity research, sales and trading business, effective immediately, and is stopping coverage of the sectors and companies it covers. Shares were down 1.1%.
Elsewhere, sandwich seller
took a 14% dive after it cut its second-quarter profit forecast.
Among the day's research calls, Thomas Weisel downgraded
, and Credit Suisse upgraded
. Morgan Stanley lifted its rating on
, but it cut
Oppenheimer reduced its fiscal 2007 earnings estimates for
by 2 cents to 29 cents a share, and the stock slipped 0.8%.
The firm said it's concerned about the production pace of the company's new phones,
upcoming iPhone and new offerings from
As for commodities, crude futures were better by 35 cents to $65.96 a barrel after the Energy Department's weekly inventory results. Gold lost 50 cents at $674.60 an ounce.