STOCKS edged lower in New York today as interest rates continued to rise in the bond market and trading slowed in advance of some more signals on inflation.

Bond prices, which tumbled on Friday's report, worsened again today. But stocks fared better as some investors remained optimistic about profit growth in a strong economy, despite the risk of inflation fighting interest rate hikes by the Federal Reserve.

"Interest rates are the story of the day," said Thom Brown, market strategist, Rutherford, Brown and Catherwood in Philadelphia. Higher interest rates hurt company profits by raising corporate borrowing costs and slowing sales.

The NYSE's composite index fell 0.44 to 360.17, and the Standard and Poor's 500 stock index fell 1.15 to 672.16. The Nasdaq composite index rose 0.27 to 1230.03, and the American Stock Exchange's market value index rose 0.17 to 599.48