NEW YORK — Concerns about consumer confidence pushed stocks lower Tuesday, as Wall Street worried that high oil prices and the possibility of inflation would prompt Americans to spend less.
Investors nervously awaited the latest reading on consumer confidence from the Conference Board. The group's Consumer Confidence Index was expected to fall slightly to 103 in March from 104 in February. Surging oil prices, a falling stock market and talk of inflation were all likely to blame should confidence lag.
Wall Street also watched closely as the latest move in the MCI- Verizon-Qwest merger battle unfolded. CNBC and The Wall Street Journal reported that MCI Inc. would accept an improved offer from Verizon Communications Inc., rejecting Qwest Communications International Inc.'s bid.
In the first hour of trading, the Dow Jones industrial average fell 23.05, or 0.2 percent, to 10,462.60.
Broader stock indicators also gave ground. The Standard & Poor's 500 index was down 2.25, or 0.2 percent, at 1,172.03, and the Nasdaq composite index lost 3.14, or 0.2 percent, to 1,989.38.
Crude oil prices rose slightly in electronic trading, with a barrel of light crude quoted at $54.14, up 9 cents, prior to opening on the New York Mercantile Exchange. Bonds recovered from Monday's selling, with the yield on the 10-year Treasury note falling to 4.6 percent from 4.64 percent late Monday. The dollar was mixed against other currencies, while gold prices rose.
Trading in MCI shares was halted temporarily after the telecommunications company accepted Verizon's improved offer of $23.50 per share, which includes $8.75 in cash per share. Verizon's offer was still lower than Qwest's $25.60 per share bid, but analysts said Verizon was a better match for the former WorldCom. Verizon lost 25 cents to $34.47, while Qwest lost 14 cents to $3.61.
Morgan Stanley edged 2 cents higher to $55.50 after a management shakeup in response to the company's lagging stock price. The company said President Stephan Newhouse would be replaced by two co-presidents, company executives Stephen Crawford and Zoe Cruz. Crawford and Cruz would have responsibility for institutional securities as well as individual investor and investment management groups.
Insurer American International Group Inc. said that Maurice ``Hank'' Greenberg would not stay on as non-executive chairman. Two weeks after his ouster as chief executive officer, the company said Greenberg will be replaced as chairman by Frank G. Zarb on an interim basis. AIG rose 20 cents to $57.22.
Delta Air Lines Inc. was up 7 cents at $4.05 after the struggling air carrier said it would save $240 million over five years by outsourcing its heavy maintenance operations, resulting in the loss of 1,600 to 2,000 jobs.
The Russell 2000 index of smaller companies was down 1.13, or 0.2 percent, at 613.99.
Overseas, Japan's Nikkei stock average tumbled 1.63 percent. In afternoon trading, Britain's FTSE 100 was down 0.33 percent, Germany's DAX index slid 0.13 percent, and France's CAC-40 fell 0.21 percent.
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