Stocks sink again amid
more earnings warnings

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By Lisa Singhania
Associated Press

NEW YORK >> Wall Street's mood soured today on a series of profit warnings that intensified worries that the earnings will remain weak into 2002.

Blue chip and technology stocks tumbled in a selloff that accelerated as the session wore on. Unlike yesterday's trading, bargain hunters failed to step in and reverse the downward momentum.

The Dow Jones industrial average closed down 76.76 at 10,871.62, falling back from morning gains. The Nasdaq composite index slid 48.29 to 2,121.66 while the Standard & Poor's 500 index dropped 14.25 to 1,241.60.

Advancers led decliners on the New York Stock Exchange, with 1,755 down, 1,331 up and 189 unchanged. Volume was 1.06 billion shares vs. 1.13 billion yesterday. The NYSE composite index fell 4.36 to 632.72, the American Stock Exchange composite index lost 1.80 to 935.32 and the Russell 2000 index was off 1.81 to 505.12.

The Treasury's 10-year note fell 2/32 to 98 1/32; its yield rose 1 basis point to 5.26 percent. The 30-year bond fell 3/32 to 95 30/32; its yield rose 1 basis point to 5.66 percent.

Although Wall Street has been expecting second-quarter results to be dismal, the severity of recent warnings -- as well as several layoff announcements -- has unnerved investors and raised worries that a recovery won't come by year's end.

"With the pressure of all these earnings preannouncements, which are going to continue unabated for the next few weeks, it's going to be very difficult for stocks to make progress," said James Meyer, director of research at Janney Montgomery Scott, who remains encouraged that the market hasn't dramatically sold off.

Avaya tumbled $1.64 to $13.36 after the telephone equipment maker lowered its revenue estimates and announced nearly 3,000 job cuts late yesterday, citing slow sales. Investors also punished Maytag, sending it down 31 cents to $32.17 on news its second-quarter earnings will be 25 percent lower than expected.

Some of the strongest selling came in technology, where stocks like Intel dropped $1.07 to $29.06 for a loss of 3.6 percent.

But embattled camera and film maker Polaroid,rose 20 cents to $3.73 on word that it will cut 2,000 jobs, or 25 percent of its work force to reposition itself as a digital imaging company.

Retail stocks also fell after the Commerce Department reported a a tiny 0.1 percent increase in retail sales for May. Wal-Mart slipped 42 cents to $50.15.