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OPEC oil cut sends
stock market reeling
NEW YORK >> The technology-dominated Nasdaq composite index suffered its biggest one-day point loss in nearly 15 months yesterday after OPEC's surprise decision to cut oil production sent stocks tumbling. The Dow Jones industrials plunged 150 points.
News that oil producers were lowering their output starting in November exacerbated a selloff that was already under way on Wall Street yesterday. But analysts still attributed much of the downturn to the market being vulnerable, especially in technology, to selling following its big six-month rally.
"You are coming to the end of the quarter and people are a little worried that prices might be extended. To see some profit-taking at the end of the quarter is no surprise," said Richard A. Dickson, senior market strategist at Lowry's Research Reports in Palm Beach, Fla.
Larry Wachtel, market analyst at Wachovia Securities, agreed. He said many market watchers have been wondering when stocks would really pull back, because recent selloffs have been short-lived and replaced by more buying.
"You are overextended, overbought, overdone. You have no juice left on the upside," said Wachtel, who called the OPEC news "an excuse" for investors to cash in some gains.
The Nasdaq closed down 58.02, or 3.1 percent, at 1,843.70. The last time the Nasdaq had a larger one-day loss was July 1, 2002, when it shed 59.41 to close at 1,403.80.
Wall Street's other major gauges saw their biggest losses in just over four months. The Dow fell 150.53, or 1.6 percent, to 9,425.51. The Dow hadn't had a bigger one-day point since May 19, when it forfeited 185.58 to finish at 8,493.39.
The Standard & Poor's 500 index declined 19.65, or 1.9 percent, to 1,009.38. The last time the S&P had a larger one-day point loss was also May 19, when it gave back 23.53 to close at 920.77.
Declining issues outnumbered advancers more than 2 to 1 on the New York Stock Exchange. Consolidated volume totaled 1.96 billion shares, up from 1.70 billion on Tuesday.
The Russell 2000 index fell 11.50, or 2.2 percent, to 507.86.
The NYSE composite index lost 81.60, or 1.4 percent, to 5,712.62. The American Stock Exchange composite index fell 1.07, or 0.1 percent, to 999.70.
The two-year Treasury note rose 2/32 to 100 2432, with its yield falling 3 basis points to 1.60 percent.
The 10-year note gained 1732 to 100 2832, with its yield declining 7 basis points to 4.14 percent.
Among yesterday's tech losers, Microsoft Corp. fell $1.14 to $28.46, Intel Corp. dropped $1.16 to $27.78 and Cisco Systems Inc. declined 83 cents to $20.32.
Viacom Inc., owner of CBS and MTV, cut its full-year earnings forecast, saying local advertising didn't increase as much as had been anticipated. Viacom fell $1.42 to $38.90.
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