Share this article

print logo


Investors waiting for yet another round of disappointing earnings reports cashed in their gains from last week's rally today, sending stocks sharply lower.

At 1 p.m., the Dow Jones industrial average was off 192.98 at 9,352.19 after a three-day winning streak last week.

Broader stock indicators also fell. The Standard & Poor's 500 index dropped 17.29 to 1,087.32, while the Nasdaq composite index was down 36.33 at 1,732.63.

The Dow was pulled lower by losses in stocks including Boeing, which tumbled $3.31 to $34.55 on last week's news that it lost the largest Defense Department contract in history. Lockheed-Martin, which won the contract, rose $1.87 to $51.79.

General Motors fell $1.65 to $43.75 on word it was selling its Hughes Electronics unit and DirecTV subsidiary to EchoStar Communications for $25.8 billion. Hughes fell 79 cents to $14.56, while Echostar dropped 28 cents at $24.98.

Gemstar-TV Guide International shed $2.84 to $20.35. News Corp. was expected to use the company's software for television program guides if it had won the bid for Hughes, analysts said.

Boeing and GM are Dow components, and their losses contributed significantly to the blue chip index's decline. But tech stocks also were vulnerable. Microsoft, also a Dow component, was down $1.22 at $60.98.

The losses weren't surprising given the market's relatively strong performance last week. Investors bought despite mostly lackluster earnings reports and a series of new warnings that business isn't likely to improve soon.

Health-care stocks were one of the few sectors to show strength. Gainers included Eli Lilly, which rose $1.60 to $81.30 on news it had received preliminary approval for its new sepsis drug.

UAL parent of United Airlines, jumped 54 cents to $14.47. James Goodwin quit as chairman and chief executive officer of the second-largest airline operator. He was replaced by John Creighton, a board member and Unocal Corp. chairman.

FedEx climbed $1.87 to $41.35 after the largest overnight-delivery company raised its profit forecast for the fiscal second-quarter because of increases in U.S. package shipments and freight revenue.

WorldCom rose 62 cents to $14 after Lehman Brothers analyst Blake Bath said the second-largest long-distance company will post accelerating revenue growth next year. He raised his recommendation on to "strong buy" from "buy."

There are no comments - be the first to comment