PRICES on the New York Stock Exchange ended lower in moderate trading yesterday.

The Dow Jones Industrial average fell 50.23 to 5,643.18, down 119.68 for the week.

Stocks dived in late morning with bond prices on reports that former Federal Reserve Governor, Mr Lyle Gramley, expected an increase in the Federal funds rate.

Mr Gramley's comments, which came after similar remarks from Fed insiders earlier this week, cited strong housing data.

On Thursday, the commerce department said new home sales shot up 6.7% in April, and sales and inventory trends within a gross domestic product report raised concerns that the economy is inflationary.

The NYSE composite fell 1.47 to 358.83.