NEW YORK >> Investors despairing over earnings ignored news today that the economy snapped back at a 5.8 percent rate in the first quarter, and so stock prices fell sharply. The Dow Jones industrials fell below 10,000 for the first time in more than two months and the Nasdaq composite index finished at levels not seen since October. Dow tumbles 124,
falls below 10,000By Lisa Singhania
Associated PressThe decline capped a dismal week for stocks, and extended a losing streak that has seen the Dow fall six out of the last eight sessions, and the Nasdaq, seven out of eight.
Tech stocks had the biggest losses in volatile trading, but overall volume was light. Analysts said investors are fed up with companies' inability to say that business is improving, and, consequently, a market that keeps backtracking. With continuing problems in the Middle East, there is little reason to believe that investments now will pay off any time soon.
"I just think there's not much an investor can hang his hat on right now, and if you combine that with the fact that any investment you made last year hasn't met with great results either, it's hard to get excited or know what to do next," said Philip S. Dow, managing director of equity strategy at RBC Dain Rauscher.
The Dow closed down 124.34 at 9,910.72 in selling that intensified late in the day. The index last closed lower on Feb. 21, when it stood at 9,834.68.
For the week, the Dow fell 3.4 percent; the blue chips have now closed down five of the last six weeks amid investors' ongoing disillusionment with company earnings and outlooks.
The technology-centered Nasdaq fared even worse, tumbling 49.81 to 1,663.89 -- the lowest finish since Oct. 18 when the index was at 1,652.72. The Nasdaq lost 7.4 percent for the week.
The Standard & Poor's 500 index dropped 15.16 to 1,076.32. It last closed lower on Oct. 31, at 1,059.78. The S&P lost 4.3 percent over the week.
Decliners led advancers nearly 3 to 2 on the New York Stock Exchange, with 1,909 down, 1,228 up and 237 unchanged. Volume was 1.36 billion shares. The NYSE compo- site index fell 5.65 to 574.32, the American Stock Exchange composite index rose 0.50 to 929.36 and the Russell 2000 index lost 7.35 to 501.50.
The Treasury's 2-year note rose 332 to 100 1032; its yield fell 6 basis points to 3.21 percent. The 10-year note gained 932 to 981932; its yield fell 4 basis points to 5.06 percent. The 30-year bond rose 1532 to 963032; its yield lost 3 basis points to 5.59 percent.
Analysts said investors might have been discouraged by a slight decline in a key gauge of consumer sentiment. The University of Michigan's index of consumer confidence was said to have fallen to 93.0 at the end of April, compared to 95.7 the prior month, according to Dow Jones News.
VeriSign tumbled $8.35, or 45.8 percent, to $9.89 on first-quarter revenues that fell short of expectations because of soft demand.
Investment firms including Merrill Lynch downgraded the company, which provides security for Internet and other transactions.