NEW YORK >> Investors brushed aside a better-than-expected employment report today, sending stocks toward their fourth straight weekly decline as fears of war and terrorism again fed worries about the nation's economic outlook. Stocks take tumble
despite job growthBy Hope Yen
Associated Press"As encouraging as that report was, there is still an air of uncertainty about what's going to happen in the Middle East and whether this economy has enough horsepower to deliver decent earnings growth in 2003," said Charles G. Crane, strategist for Victory SBSF Capital Management.
By this afternoon, the Dow Jones industrial average was down 77.27, or 1 percent, at 7,852.03, having declined 180 points in the previous three sessions to nearly a four-month low.
The broader market was also lower. The Nasdaq composite index fell 16.39, or 1.3 percent, to 1,285.34. The Standard & Poor's 500 index dropped 8.57, or 1 percent, to 829.58. The Russell 2000 index, which tracks smaller company stocks, dropped 3.12, or 0.9 percent, to 361.62.
The four gauges were headed toward their fourth week of declines, a feat not seen since the period ended Oct. 4.
The price of the Treasury's 10-year note was up 5/32 point this afternoon, while its yield fell to 3.93 percent from 3.95 percent late yesterday. The price of two-year Treasury notes was up 3/32 point, while the yield fell to 1.56 percent from 1.67 percent yesterday.
The Labor Department reported today that the nation's unemployment rate dropped to 5.7 percent in January as businesses added 143,000 new jobs. It was the largest increase since November 2000. Analysts had expected the unemployment rate to hold steady at 6 percent.
The news lifted blue chip stocks as much as 71 points in early trading, but investors then turned hesitant about buying due to the continuing threat of war.
Terrorism concerns also pressured the market. The Bush administration today raised the national terror alert from yellow to orange, citing a U.S. intelligence warning of a "high risk" of terrorist attack. The highest alert level is red.
Johnson & Johnson dropped 75 cents to $51.37 after The Wall Street Journal reported the health care company was in discussions to buy biotech firm Scios for about $2 billion. Scios jumped $6.61 to $41.30.
Pixar Animation Studios slid $3.27 to $51.15 after posting quarterly profits that beat estimates and saying it might not continue its existing movie distribution deal with Walt Disney Co.
Winners included Cigna, which gained $3.89 to $43.11, after the health insurer reported fourth-quarter operating earnings that beat analysts' expectations by 7 cents a share.
Electronic Data Systems rose 67 cents to $16.38 despite warning that its first-quarter and full-year earnings would fall short of Wall Street's estimates.
Overseas, Japan's Nikkei stock average finished 0.4 percent lower. In Europe, France's CAC-40 dropped 1.4 percent, Britain's FTSE 100 inched up 0.1 percent and Germany's DAX index declined 3 percent.
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