NEW YORK >> A bomb blast in the Philippines sent stocks lower today, as investors unloaded shares on renewed fears of terrorism and concerns about a war with Iraq. Philippines blast rattles
jittery stock marketBy Hope Yen
Associated PressIn afternoon trading, the Dow Jones industrial average was down 71.50, or 0.9 percent, at 7,766.36.
The broader market also fell. The Nasdaq composite index lost 4.70, or 0.4 percent, to 1,315.59. The Standard & Poor's 500 index dropped 7, or 0.8 percent, to 827.81. The Russell 2000 index, which tracks smaller company stocks, fell 1.02, or 0.3 percent, to 358.29.
The price of the Treasury's 10-year note was up 1/16 point this afternoon, while its yield fell to 3.66 percent from 3.67 percent late yesterday. Two-year Treasury notes were up 1/32 point and yielded 1.48 percent, down from 1.50 percent yesterday.
A powerful bomb hidden in a backpack exploded at an airport in the southern Philippines today, killing at least 19 people, including an American, and wounding more than 100. The government called it a "brazen act of terrorism." No one claimed responsibility for the blast.
The attack exacerbated an already tense mood on Wall Street. Analysts say investors have been unwilling to commit to stocks on fears of a possible war with Iraq that could threaten a fragile economic recovery.
"It's the war and terrorism and it's overhanging the market," said Barry Berman, head trader at Robert W. Baird & Co. in Milwaukee. "In order for the market to take a longer term trend to the upside, people are going to have to have a better sense of what the prospects are for stocks."
The United States said it planned to push for a vote next week on its U.N. resolution authorizing war in Iraq, as Saddam Hussein's government continued to destroy banned missiles in a bid to stave off an armed conflict.
BJ's Wholesale Club dropped $2.95 to $10.65 after the discounter reported a drop in fourth-quarter income and said it expected earnings for the fiscal year to fall below analysts' expectations.
Automakers also fell. General Motors dropped $1.60 to $31.56 and Ford Motor lost 33 cents to $7.74 after Deutsche Bank lowered their stock ratings, citing concerns of falling demand for cars and trucks.
Martha Stewart Living Omnimedia fell 20 cents to $7.35, after reporting a fourth quarter loss, its first quarterly loss ever. For the three months ending Dec. 31, the media and retailing company lost $2 million, or 3 cents per share, in contrast to a profit of $5.7 million, or 13 cents per share, in 2001.
Gainers included EchoStar Communications, which rose $1.52 to $27.47, after the nation's second biggest satellite TV company posted a $716 million fourth-quarter loss, citing charges from its failed merger plans with Hughes Electronics.
Overseas, Japan's Nikkei stock average finished 0.1 percent lower. In afternoon trading in Europe, France's CAC-40 fell 3.1 percent, Britain's FTSE 100 dropped 1.6 percent and Germany's DAX index lost 2.0 percent.
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