NEW YORK >> Investors held to their pattern of retreating after even a moderate advance, sending stocks sharply lower today amid ongoing concerns about Iraq. Hewlett-Packard's report of weaker-than-expected revenue also contributed to the decline, which more than wiped out the previous session's gain. Hewlett-Packard
disappoints marketBy Amy Baldwin
Associated PressThe downturn wasn't surprising as selloffs have been the norm for weeks. Analysts say stocks can't be expected to move upward until it's clear whether there will be a war with Iraq and what impact there will be on the U.S. economy.
"The conflict in the Middle East is on the forefront of everyone's mind," said John C. Forelli, portfolio manager for Independence Investment LLC in Boston. "We are just sort of battening down the hatches and trying to figure out what is going to go on in the Middle East. The hope in the back of everyone's minds is there is a quick resolution and that businesses and consumers start spending again and give investors some faith in the market."
Declining issues outnumbered advancers 9 to 5 on the New York Stock Exchange, where trading was light.
The Dow Jones industrial average closed down 102.52, or 1.3 percent, at 7,806.98. The loss easily erased yesterday's gain of 51.26. It was the Dow's second triple-digit loss in three days, following Monday's decline of 159.87.
The broader market also retreated. The Nasdaq composite index fell 25.31, or 1.9 percent, to 1,303.67. The Standard & Poor's 500 index declined 11.02, or 1.3 percent, to 827.55. The Russell 2000 index fell 3.23, or 0.9 percent, to 357.97.
The price of the Treasury's 10-year note was up 13/32 point this afternoon, while its yield fell to 3.77 percent from 3.82 percent late yesterday. Two-year Treasury notes were up 1/32 point and yielded 1.53 percent, down from 1.56 percent yesterday.
Today, Federal Reserve Chairman Alan Greenspan said during testimony before the Senate Banking Committee that the plunge in confidence was "a very significant decline" but not a surprise.
Disappointing earnings reports contributed to today's slippage. H-P was the Dow's biggest loser, dropping $2.81 to $15.37, having reported quarterly earnings late yesterday that met analysts' expectations but revenue that missed forecasts.
Eaton Vance declined 87 cents to $25.23 after the mutual fund and investment management company reported fiscal first-quarter earnings that were 3 cents short of analyst's expectations.
Among other losers, Morgan Stanley fell 75 cents to $35.42 after The Wall Street Journal reported the brokerage house could face charges in an initial public offering investigation.
Gainers included Urban Outfitters, which rose $1.60 to $18.60 after Fulcrum upgraded the retailer to "buy" from "neutral."
Overseas, Japan's Nikkei stock average finished down 3.7 percent. In Europe, Britain's FTSE 100 declined 0.8 percent, France's CAC-40 fell 0.9 and Germany's DAX index lost 1.4 percent.
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