Archives

NEW YORK, (Reuters) Stocks added to losses in late afternoon on Wednesday, with blue chips trading at a 4-month low, amid investor jitters over a looming threat of a U.S.-led attack on Iraq and heightened security concerns.

General Motors Corp. was keeping the Dow Jones industrial average under pressure after a negative brokerage call, but Coca-Cola Co. helped to underpin the blue-chip average after the world's top soft drink maker posted results that were largely in line with expectations.

War worries were the main focus of investors, but Wall Street also weighed comments from Federal Reserve Chairman Alan Greenspan on the economy during a second round of his semiannual testimony on Capitol Hill.

Corporate earnings news was mixed but included some soft reports from leading technology names such Applied Materials and Sycamore Networks Inc..

"Iraq is clearly front and center in terms of investor fears," said Subodh Kumar, chief investment strategist, at CIBC World Markets in Toronto.

"The other issue is the question about earnings and recovery. I like fourth-quarter earnings but there are fears that revenues (going forward) will not come back fast enough to keep the earnings momentum going."The Dow average fell 71.09 points, or 0.91 percent, at 7,772.02, the broader Standard & Poor's 500 Index slipped 8.53 points, or 1.03 percent, to 820.67, while the technology-laced Nasdaq Composite Index eased 11.95 points, or 0.92 percent, to 1,283.51.

In testimony before the House Financial Services Committee, Greenspan sharpened his warning about the danger of ballooning budget deficits, putting him at odds with President George W. Bush's push for a quick economic stimulus through tax cuts.

Top U.S. intelligence officials said North Korea had one or two nuclear weapons and a missile that could carry one to the West Coast of the United States.

Also, the U.S. military has deployed jeep-mounted Stinger anti-aircraft missiles around the nation's capital in an increased alert against possible terrorist attack, defense officials said.

All three key market gauges have fallen for four straight weeks amid nagging questions about the scale and timing of a possible assault on Iraq and the potential impact on the fragile U.S. economy.

GM fell $1.50 to $34.05 after Banc of America Securities cut its investment rating to "sell" from "neutral," based on reduced "free cash flow" growth expectations for the big three automakers.

Coca-Cola reported a slight rise in quarterly profit reflecting growing momentum in soft drink, juice and water sales. Coca-Cola shares rose 83 cents to $39.83.

Sycamore Networks, a telecommunications equipment maker, reported a quarterly loss amid weak spending by telephone companies. Its shares fell 18 cents to $3.07, or 5.5 percent. Rivals also fell such as sector giant Cisco Systems Inc., down 9 cents to $13.38, and Juniper Networks, off 25 cents to $8.55.Among other technology stocks, Applied Materials, the top maker of chip production equipment, slipped after it posted a net loss and forecast earnings for its current quarter at the lower end of Wall Street expectations. Its shares, the most active on Nasdaq, fell 14 cents to $11.80. Among other chip issues, Altera Corp., fell 23 cents to $11.16.

Viacom Inc. was a drag on the market, falling nearly 5 percent as worries about its cable networks' cash flow overshadowed its report of better earnings helped by stronger advertising.

It fell $1.06 to $36.44 on the NYSE.

The S&P Media index fell more than 1 percent, reflecting losses by firms such as Omnicom Group Inc., down 93 cents to $55.45 and Clear Channel Communications, down 83 cents to $36.82.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager