Dow gives back gains

A spate of bad news about the economy, including sluggish productivity growth and disappointing retail sales, hit Wall Street hard Thursday and sent stocks falling sharply.

The selloff more than offset the market’s big advance from Wednesday, which analysts had downplayed to start with, attributing it to bargain hunters, not investors ready to commit to stocks.

The Dow Jones industrial average closed down 141.42, or 1.7 percent, to 8,283.70. The loss wiped out Wednesday’s 117-point gain, the Dow’s only advance in seven sessions.

The broader market also dropped sharply.

Above, traders and specialists study the monitors Thursday at the New York Stock Exchange.

Banking: Mortgage rates hit low

Rates on 30-year mortgages dropped to a new low this week, providing even more fuel for the mortgage refinancing boom.

In a nationwide survey released Thursday, Freddie Mac, the mortgage company, reported that the average interest rate on a 30-year fixed-rate mortgage fell to 6.15 percent this week, the lowest level in 32 years of record keeping.

It’s the third new low reached on 30-year mortgage rates this year.

Last week, rates on 30-year mortgages dipped to 6.22 percent, matching the previous record low set in mid-August. That low had bested the prior low of 6.34 percent reached in late July.

Kansas City, Mo.: Interstate Bakeries announces new CEO

A former official of Ralston Purina Co. has been named chief executive officer of Interstate Bakeries Corp., the company announced Thursday.

James R. Elsesser formerly was a vice president and chief financial officer at Ralston Purina. He will begin his new position at Interstate Bakeries on Oct. 1.

Elsesser replaces Charles Sullivan, who is retiring. Sullivan will remain chairman of the board, a post he’s been in for 13 years,. Elsesser played a major role in negotiations for the sale of Continental Baking Co. to Interstate Bakeries in 1995.

Interstate Bakeries, with headquarters in Kansas City, Mo., is the nation’s largest baker and distributor of fresh baked bread and sweet goods. Its brands include Wonder, Hostess, Dolly Madison and Drakes.

Terrorist attacks: State regulators to study rise in insurance rates

State insurance regulators plan to examine recent increases in insurance prices including whether the Sept. 11 terror attacks triggered unjustified rate hikes.

The National Association of Insurance Commissioners said Thursday that beginning next week it would study recommendations made by Americans for Insurance Reform, a coalition of consumer groups. The coalition says it wants stronger state regulations to protect people from excessive insurance rates.

In a July letter, the coalition urged state insurance commissioners to investigate how the economy affects insurance rates and whether insurers are price-gouging consumers.