|
War woes drop dow Original Source Link: (May no longer be active)
http://biz.yahoo.com/cbsm-top/030324/123ca43393279c271000b13cfe5a4a65_1.htmlhttp://biz.yahoo.com/cbsm-top/030324/123ca43393279c271000b13cfe5a4a65_1.html
CBS MarketWatch
Dow rings up 260-point loss on war woes
Monday March 24, 10:41 am ET
By Steve Gelsi
NEW YORK (CBS.MW) - The Dow Jones Industrial Average crossed the 250-point mark into the red Monday as the euphoria over the start of the military campaign against Iraq gave way to the realities of war.
The Dow Jones Industrial Average (CBOT:^DJI - News) fell 263 points, or 3.1 percent, to 8,258, as it wiped out a 235 point rally on Friday.
The Nasdaq (NasdaqSC:^IXIC - News) slid 42 points, or 3 percent, to 1,379.
The S&P 500 (^GSPC - News) gave up 27, or 3 percent, to 868.
Advancers trailed decliners by 621 to 2,327 on the Big Board.
The move down came on the heels of a selloff overseas after an appearance by Saddam Hussein on Iraqi TV.
"We're seeing some profit-taking today," said Art Hogan, market strategist for Jefferies & Co. "We're seeing that the war will be a matter of weeks, not days."
Brent crude in New York for May delivery jumped $1.29 to $28.20.
Government bonds, including U.S. Treasurys, rose as investors sought havens from war.
Gold futures powered up above the $330 level as the yellow metal shined in the eyes of skittish investors. See Metals Stocks.
The euro was up 0.44 percent to $1.0645, near the peak of the day. European stocks were sharply lower with the DAX-30 in Germany and the CAC-40 in Paris down 3.9 percent and 3 percent respectively. See European markets .
The equity selloff reflects ebbing confidence from investors as documented in the latest survey by UBS Warburg. Optimism came in at a record low of 5 in March, down from 9 in February.
The pullback came after the Dow Jones Industrial Average (CBOT:^DJI - News) turned in its best weekly performance in 20 years with a gain of 662 points, or 8.4 percent.
Investors jumped back into stocks to mark the end of a long period of uncertainty over whether the U.S. would go to war against Iraq, but now the mission is mired in the heat of battle with casualty reports mounting.
In sector action, Airlines (AMEX:^XAL - News) shed 7.7 percent after a big runup on Friday. The U.S. government is currently mulling bailout proposals for the sector even as airlines face $10 billion in additional losses in the face of the war.
Nearly all sectors were in the red.
The S&P Insurance Index (CBOE:^IUX - News) fell 2.9 percent. The Amex Networking Index (AMEX:^NWX - News) gave up 3.5 percent.
Oil Service stocks (Philadelphia:^OSX - News) rose 0.8 percent and the CBOE Gold Index (CBOE:^GOX - News) rose 1.6 percent.
Individual movers
Dow component Altria (NYSE:MO - News) pulled the index lower after an Illinois judge ordered late Friday the company to pay $10 billion in damages for deceiving smokers into thinking "light" cigarettes were safer than regular cigarettes. The stock fell 5.9 percent to $32.99.
Wal-Mart (NYSE:WMT - News) shares fell $1.07 to $53.60. The retailing giant said it still sees steady sales growth for March and April, despite losing some sales over the weekend to what it termed the "CNN effect" as shoppers tuned in to the war coverage.
In one of only three earnings reports due this week from companies in the S&P 500, grocery and pharmacy retailer Walgreen (NYSE:WAG - News) met Wall Street's forecast of 36 cents per share for its first-quarter net income. The stock added 7 percents to $31.89.
Sandy Weill, chieftain of Dow component Citigroup (NYSE:C - News) , made headlines over the weekend with his decision to scrap his nomination to the board of directors at the New York Stock Exchange to represent small investors.
Criticism came from New York Attorney General Eliot Spitzer, who reportedly said the selection of Weill was an "outrage." Shares of Citigroup gave up $1.09 to $36.11.
Bristol-Myers (NYSE:BMY - News) was cut to "outperform" at Gerard Klauer, on concerns about price pressure and the prospect of drugs coming off patent. Shares fell 98 cents to $21.35.
Airborne (NYSE:ABF - News) jumped 14 percent to $19.05 after the company confirmed it's in talks to sell itself to Deutsche Post in a deal that values the company in the low 20s. The companies are in talks for Deutsche Post to buy Airborne's ground operations. Airborne's airline operations would be spun out.
Want to know more about the market? FREE membership at CBS MarketWatch includes advanced charting, portfolio tracking, email alerts and e-newsletters with expert tips and commentary. Join CBS MarketWatch TODAY!
|
|
