Stocks Close Lower on Greenspan Testimony

The tech-heavy Nasdaq led the drop.
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Federal Reserve

Chairman

Alan Greenspan's

Humphrey-Hawkins

testimony provided the selling impetus in stocks and bonds, as the tech-heavy

Nasdaq Composite Index

led major market averages on the downside.

Major stock proxies, however, did manage to close off their session lows.

The

Dow Jones Industrial Average

pared a decent chunk of its intraday losses. At its bottom, it had traded as low as the 10,880 level. As for the Nasdaq Comp, it bottomed intraday at the 2679.35 level.

Greenspan said the economy may be growing too quickly and might lead to another interest rate increase if signs of inflation emerge.

Greenspan said the Fed when it raised the federal funds rate in June "did not believe that its recent modest tightening would put the risks of inflation going forward completely into balance."

On the

New York Stock Exchange

, decliners beat advancers 1,811 to 1,073 on 775.5 million shares. On the

Nasdaq Stock Market

, losers beat winners 2,372 to 1,540 on 1.03 billion shares.

On the NYSE, 62 issues set new 52-week lows while 38 touched new highs. On the Nasdaq, 67 issues set new 52-week highs while new lows totaled 44.

On the Big Board,

America Online

(AOL)

was most active, with 21.9 million shares changing hands. It was down 4 11/16 to 110 3/8.

On the Nasdaq,

Compuware

(CPWR)

was most active, with 45.7 million shares changing hands. It was down 6 7/8, or 20.5%, to 26 3/4. The company after the close yesterday reported lower-than-expected first-quarter revenues.

Credit Suisse First Boston

and

SG Cowen

both downgraded the stock today.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup

Earlier...

3:07 p.m.: Greenspan Testimony Continues to Weigh on Stocks

Wall Street probably wants to wash out the mouth of

Federal Reserve

Chairman

Alan Greenspan

with soap judging by its reaction to the Fed chief's

testimony.

2:07 p.m.: Stocks Remain Mired in the Red

Stocks and bonds sold off as market players interpreted

Federal Reserve

Chairman

Alan Greenspan's Humphrey-Hawkins

testimony as hawkish on interest rates.

1:14 p.m.: Midday Musings: Greenspan Says the Words Wall Street Doesn't Want to Hear

12:04 p.m.: Stocks Tumble as Greenspan Testifies

Stocks and bonds were lower late this morning as

Federal Reserve

Chairman

Alan Greenspan

testifies before the

House Banking Committee

.

10:52 a.m.: Stocks Mostly Lower as Tech Sector Continues to Take a Hit

After

yesterday's late-session rally, the tech sector was tumbling this morning as market players anxiously awaited

Federal Reserve

Chairman

Alan Greenspan's

congressional testimony at 11 a.m. EDT.

9:56 a.m.: Tumble in Tech Sector Pulls Indices Lower

The tech sector was tumbling early on, leading the market lower ahead of

Federal Reserve

Chairman

Alan Greenspan's

congressional testimony on the economy and monetary policy, which is slated for 11 a.m. EDT.