Slumping Dow nearly falls below 10,000

Associated Press

NEW YORK – Investors worried about an impending earnings report today from Intel drove down stocks to their lowest levels in months. For the second time in four sessions, the Dow Jones industrial average came close to falling below 10,000, but a late rally mitigated the damage.

Concerns that Intel’s results, which were due out after the market’s close, would be disappointing sparked a selloff of other chip makers. Investors then moved on to Internet stocks; America Online, and Yahoo! all fell to 52-week lows on concerns that their growth was slowing and earnings would fall short.

The Dow closed down 149.01 at 10,089.71, according to preliminary calcuations, after dropping more than 200 points earlier in the session.

The Nasdaq composite index was down 76.49 at 3,213.79. The Standard and Poor’s 500 index fell 24.65 to 1,349.97.

After the market closed, IBM reported earnings in line with expectations. The stock ended regular trading up $1.88 at $113.

“The mood of the market clearly is the one of despair at this point,” said Kevin Caron, an associate strategist at Gruntal &Co., who believes earnings overall will be healthy.

Investors weren’t as optimistic.

Intel was up 56 cents at $36.25 after spending much of the day down and falling more than 11 percent Monday.

But Micron Technology fell $5 to $28.69 after Paine Webber cut its rating to “attractive” from “buy,” citing weak market conditions.

Some of the worst hemorrhaging came in Internet stocks. Investors worried about slowing growth drove AOL, Yahoo! and Amazon to their lowest levels in a year. Yahoo! fell $6.36 to $48.89; Amazon was off $2.44 at $21.88; and AOL slipped $9.31 to $43.30.

Blue chips also fell, pushed lower by a mix of profit taking and worries about corporate earnings.

Bank One slipped $1.81 to $32.81, after it reported its fourth straight quarterly decline. Citigroup fell $1.44 to $49.38, despite announcing earnings ahead of Wall Street expectations.

Oil-related stocks were higher, lifted by the continuing fighting in the Middle East and uncertainty about how that would affect U.S. supplies. Crude futures traded at about $33 on the New York Mercantile Exchange.

Schlumberger rose $2. to $81.88. Halliburton was up 19 cents at $43.38.

Pharmaceutical stocks, which traditionally are viewed as a safe bet in uncertain markets, also were higher. Pfizer rose $1.25 to $44.94 and Merck was up $1.31 at $78.19.

The market has dropped since early September on worries about the strength of third-quarter earnings. Many investors have been selling stocks they fear will report disappointing results. Tech stocks, which have been among the highest-profile and highest-priced in recent years, have been a particular focus of investors’ ire.

Declining issues outnumbered advancers by a more than 3 to 1 ratio on the New York Stock Exchange, where volume came to 1.16 billion shares, ahead of the 998.73 million reported Monday.

The Russell 2000 index fell 12.03 to 469.72.

Overseas, Japan’s Nikkei stock average rose 1.87 percent. Germany’s DAX index was off 0.51 percent, Britain’s FT-SE 100 up 1.23 percent, and France’s CAC-40 up 0.39 percent.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

More in Local News

Members of South County Fire practice onboarding and offboarding a hovering Huey helicopter during an interagency disaster response training exercise at Arlington Municipal Airport on Tuesday, June 6, 2023, in Arlington, Washington. The crews learned about and practiced safe entry and exit protocols with crew from Snohomish County Volunteer Search and Rescue before begin given a chance to do a live training. (Ryan Berry / The Herald)
Snohomish, King counties train together for region’s next disaster

Dozens of agencies worked with aviators Tuesday to coordinate a response to a simulated earthquake or tsunami.

Police stand along Linden Street next to orange cones marking pullet casings in a crime scene of a police involved shooting on Friday, May 19, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Lake Stevens man identified in Everett manhunt, deadly police shooting

Travis Hammons, 34, was killed by officers following a search for an armed wanted man in a north Everett neighborhood.

Funko mascots Freddy Funko roll past on a conveyor belt in the Pop! Factory of the company's new flagship store on Aug. 18, 2017.  (Dan Bates / The Herald)
Lawsuit: Funko misled investors about Arizona move

A shareholder claims Funko’s decision to relocate its distribution center from Everett to Arizona was “disastrous.”

1 stabbed at apartment in Lynnwood

The man, 26, was taken to an Everett hospital with “serious injuries.”

A firefighting helicopter carries a bucket of water from a nearby river to the Bolt Creek Fire on Saturday, Sep. 10, 2022, on U.S. Highway 2 near Index, Washington. (Ryan Berry / The Herald)
Red flag fire warning issued west of Cascades

There are “critical fire weather” conditions due to humidity and wind in the Cascades, according to the National Weather Service.

A house fire damaged two homes around 1:30 a.m. Tuesday, June 6, 2023 in Marysville, Washington. (Photo provided by Marysville Fire District)
Fire burns 2 homes in Marysville, killing 2 dogs

Firefighters responded to a report of a fire north of Lakewood Crossing early Tuesday, finding two houses engulfed in flames.

Logo for news use featuring the municipality of Mountlake Terrace in Snohomish County, Washington. 220118
Mountlake Terrace eyes one-time projects for $2.4M in federal funds

Staff recommended $750,000 for a new roof and HVAC at the library, $250,000 toward a nonprofit facility in Lynnwood and more.

The Snohomish River turns along the edge of the Bob Heirman Wildlife Preserve at Thomas’ Eddy on Wednesday, May 3, 2023 in Snohomish, Washington. (Olivia Vanni / The Herald)
To build a healthier Snohomish River, more log jams

About $2.8M in grants will help engineer log jams, tear down levees and promote salmon restoration at Bob Heirman Wildlife Preserve.

Dave "Bronco" Erickson stands next to the pink-and-purple 1991 Subaru Justy hatchback “Pork Chop Express” car that he is seeking to re-home for $500. The car has been on Whidbey Island for years, mainly as yard art. (Andrea Brown / The Herald)
For sale: Whidbey’s fabled ‘Pork Chop Express’ gets great smileage

Asking price is $500 for the 1991 Subaru Justy, a three-cylinder econobox with 65K miles and a transmission as rare as hen’s teeth.

Most Read