US STOCKS GYRATE ON FEARS

U.S. stocks gyrate on credit market fears

NEW YORK, Aug. 1 -- U.S. stock indexes gyrated Wednesday after overseas sell-offs on fears of a widespread U.S. credit market contraction.

The Dow Jones industrial average was down 5.21 points, or 0.26 percent, to 13,206.78 in mid-afternoon trading. It swung back and forth more than 30 points earlier.

The broader Standard & Poor's 500 Index lost 4.01 points, or 0.28 percent, to 1,451.26.

The technology-heavy Nasdaq Composite Index fell 12.85 points, or 0.50 percent, to 2,533.42.

In London, the FTSE 100 index lost 109.50 points, or 1.72 percent, to close at 6,250.60. All European markets but Switzerland's closed down 1.5 percent to 2.5 percent on fears of U.S. mortgage-lender liquidations.

The Zurich Stock Exchange's Swiss Market Index closed up 2.07 percent.

Japan's Nikkei 225 index finished the day down 377.91, or 2.19 percent, at 16,870.98 as all major Asian markets fell sharply on concerns about risky lending.

The 10-year U.S. Treasury note fell 7/32, yielding 4.761 percent, while the 30-year bond was down 10/32, yielding 4.915 percent.

The U.S. dollar rose to 118.51 yen from 118.47 yen in New York late Tuesday. The euro, in U.S. dollars, slipped to $1.3667 from $1.3681.