Stocks Fall For 3rd Day As Dollar Strengthens

NEW YORK — The stock market lost ground for a third straight day as investors grew uneasy about a rising dollar and spiking demand for the safest government debt.

A disappointing earnings report from computer maker Dell Inc. weighed on technology shares Friday and hurt the  composite index.

Demand for safe havens rose following Dell's report and as European Central Bank President Jean-Claude Trichet said the ECB plans to start reining in some of its stimulus programs. Hiking borrowing rates could help keep inflation in check but could also slow improvement in the economy.

Investors seeking safety pushed into the dollar. A strengthening dollar curtails foreign demand for commodities, which are traded in dollars. It also can depress U.S. exports, which become more expensive as the dollar rises.

The advancing dollar hurt energy and materials stocks, which are closely tied to commodities.

Investors looked for stable government investments. The yield on the three-month T-bill, which moves opposite its price, fell to 0.01 percent from 0.02 percent late Thursday. It stands near its lowest level of the year, which it hit Thursday. Yields briefly turned negative Thursday as investors seeking to pad their portfolios with safe investments before the end of the year were willing to accept losses.Morehttp://www.google.com/hostednews/ap/article/ALeqM5jmT59dgLTTziX4p9X9MRBRpWZGdQD9C3DT580

Stocks Fall For 3rd Day As Dollar Strengthens