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Rare deja vu for Dow
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November 3, 1998: 5:21 p.m. ET
Blue chip index ends unchanged; investors take time off to watch election
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NEW YORK (CNNfn) - For the Dow industrials, Tuesday never happened.
For the first time in nearly two years, the blue-chip index closed without the slightest change as investors took time off to contemplate U.S. elections, rate cuts in Europe, the Federal Reserve's next move -- anything but betting on the stock market.
The Dow Jones industrial average closed at 8,706.15, the first time the index moved 0.00 points on the day since Dec. 2, 1996. On the New York Stock Exchange, advances led declines 1,610 to 1,420 as trading volume reached 701 million shares.
The Nasdaq Composite fell 12.48 to 1,788.43 and the S&P 500 index, also closing nearly unchanged, inched down 0.76 to 1,110.84.
Although the news of rate cuts by the central banks of Spain and Sweden was seen as positive for stocks, market experts said similar moves in Britain or Germany would have had a greater impact on markets around the world. Both the Bank of England and the Bundesbank will hold their policy meetings Thursday, as will central bankers in France.
Some of Wall Street's attention also focused on mid-term elections for Congress and state governments in the United States Tuesday.
Despite the market's relative stability, Vince Farrell, chief investment officer at Spears, Benzak, Salomon & Farrell, warned investors to be cautious as the world crisis remains alive, corporate earnings growth faces declines and the prospect of a mild economic recession in the United States is not completely eliminated. (531K WAV) or (531K AIFF)
The bond market advanced even as investors absorbed $16 billion in newly issued five-year notes. The benchmark 30-year Treasury bond gained 13/32 of a point in price for a yield of 5.21 percent.
The dollar eased slightly against the German mark, despite the mark's slide against the yen and the rate cuts in Spain and Sweden, which could signal a trend toward easing in the rest of Europe. The dollar closed marginally higher against the Japanese yen in trading limited by an official holiday in Japan.
Time to take a break
After four straight sessions of stock-market advances, investors appeared reluctant to take home their profits, but also lacked the inspiration to take prices up to the next level. A dearth of corporate or economic news also helped keep the market subdued.
Among the few movers, shares of SangStat Medical (SANG) jumped 4-7/8, or 22.5 percent, to 26-1/2 on news the Food and Drug Administration gave marketing approval to SangStat's SangCya, a product that helps prevent rejection of solid-organ transplants.
But FDA approval failed to lift the shares of Immunex (IMNX), which slipped 1-5/16 to 69-5/16, even after the company's rheumatoid arthritis treatment Enbrel received the government agency's blessing.
Elsewhere in the market, blue-chip technology stocks came under pressure after a strong performance during the past few sessions. Shares of Dell Computer (DELL) dropped 1-3/4 to 64-3/8, Cisco Systems (CSCO) shed 1-5/16 to 63-3/8 and Intel (INTC) lost 1-3/8 to 90-7/16. Microsoft (MSFT) closed 5/8 lower at 105-3/16. Because of the U.S. elections, there were no hearings Tuesday at a broad antitrust trial, brought against the company by the U.S. Justice Department and 20 states.
Finally, shares of Dow component Citigroup (CCI) dropped 2 to 44-1/8, as investors continued trying to discern the financial conglomerate's future in the wake of the sudden resignation of the company's president, Jamie Dimon, over the weekend.
Other financial issues traded mixed. Broker Merrill Lynch (MER) stood out of the crowd, gaining 7/8 to 61-7/8 after Warburg Dillon Read upgraded the stock to "buy" from "hold."
(Click here for a look at today's CNNfn market movers) 
-- by staff writer Malina Poshtova Zang
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