NEW YORK >> Unnerved by a profit warning from Sears, investors sold stocks for a fourth straight session today and extended six weeks of selloffs on Wall Street. Stocks drop on fears
about Iraq
By Amy Baldwin
Associated PressInvestors were also uneasy about the economy in light of a shutdown of the nation's West Coast ports and the possibility of war with Iraq, which President Bush planned to speak to the nation about tonight. Selling accelerated in the final hour of trading with the Dow Jones industrials dropping more than 100 points, their second straight triple-digit loss.
"There is just no good news to trigger anybody's enthusiasm to buy stocks," said Bill Barker, investment strategy consultant at RBC Dain Rauscher in Dallas.
Declining issues outnumbered advancers nearly 4 to 1 on the New York Stock Exchange where volume was light.
The Dow closed down 105.56, or 1.4 percent, at 7,422.84. The Dow is near a five-year low, having not had a weaker finish since Nov. 12, 1997, when it stood at 7,401.30.
The market's broader gauges also stumbled for a fourth day. The Nasdaq composite index fell 20.50, or 1.8 percent, to 1,119.40, a new six-year low. The Nasdaq last finished lower on Aug. 1 1996, when it stood at 1,098.85.
The Standard & Poor's 500 index declined 15.30, or 1.9 percent, to 785.28, falling to a four-day loss of 62.63.
The three market indicators have suffered six consecutive weekly declines, largely due to decreased expectations for third-quarter earnings results that companies will release over the next few weeks.
The Russell 2000 index, the barometer of smaller company stocks, fell 9.69, or 2.8 percent, to 338.29.
The price of the Treasury's 10-year note was up 15/32 point today, while its yield fell to 3.61 percent from 3.67 percent late Friday. Two-year Treasury notes were up 3/32 point and yielded 1.74 percent, down from 1.79 percent late Friday.
Investors continue to have reasons to doubt the strength of the economy. The latest worry has to do with the West Coast port lockout.
Much of this year's selling can be attributed to the economy. Investors have been alternating between being displeased by a slow-paced recovery and fearful that the economy would slip back into recession.
"There's a modest (economic) recovery that traders can't get too excited about in the here and now," said Kevin Caron, market strategist, Ryan, Beck & Co., LLC.
The market has also been anxious about the possibility of war with Iraq. Bush was scheduled to address the nation during a prime-time televised speech Monday night about Iraq and the possibility of war.
Sears dropped $5.34, or 14.2 percent, to $32.30 after issuing a profit warning for the third quarter.
"We continue to get (warnings) in every sector. It is not just technology. It is a rough time," Barker said.
Brokerage downgrades pressured other stocks.
United Parcel Service fell $2.25 to $59.35 and FedEx stumbled $2.01 to $49.05 after Morgan Stanley downgraded the two companies.
Cisco Systems fell 38 cents to $9.08 after Goldman Sachs lowered its earnings estimates for the networking company.
Among today's winners, Adolph Coors rose $1.54 to $58.88 after Morgan Stanley upgraded the brewing company.
Intel advanced 14 cents to $13.85 after CEO Craig Barrett said he expects the chip industry to rebound early next year.
Overseas markets were lower with Japan's Nikkei stock average closing down 3.8 percent. In Europe, France's CAC-40 fell 1.2, Britain's FTSE 100 declined 0.9 percent, and Germany's DAX index lost 1.7 percent.
