NewsMine — economy — united-states — 2003 — 2003-july-aug — Viewing Item

Dow plunges below 9000 worldcom scandal Original Source Link: (May no longer be active)    http://www.examiner.com/business/default.jsp?story=b.wallstreet.0627w http://www.examiner.com/business/default.jsp?story=b.wallstreet.0627w Publication date: 06/27/2002 Dow plunges below 9,000 BY AMY BALDWIN Associated Press NEW YORK -- Stunned by news of another accounting scandal, this time at WorldCom, investors sent stocks plunging Wednesday, with the Dow Jones industrials falling below 9,000 for the first time since October. But the market managed to close narrowly mixed, aided by computer-generated buying late in the day. Despite the comeback, which was based on technical factors rather than a fundamental shift in market sentiment, Wall Street remained in a serious downturn amid questions about corporate ethics, weak earnings prospects and the lingering possibility of more terrorist attacks. "We've had these reversals before, and here's another one," said Richard A. Dickson, technical analyst at Hilliard Lyons in Louisville, Ky. After falling as much as 200.25, the Dow closed down just 6.71, or 0.1 percent, at 9,120.11, according to preliminary calculations. The Dow sank 155 on Tuesday, its fourth triple-digit loss in the past five sessions. The Dow hadn't traded below 9,000 since Oct. 10, and last closed below that milestone on Oct. 2, when it reached 8,946.56. At that time, the market was recovering from the precipitous drop it suffered following the Sept. 11 attacks. The broader market ended mixed Wednesday. The Nasdaq rose 5.34, or 0.4 percent, to 1,429.33. For much of the day, the Nasdaq traded below its post-Sept. 11 closing low of 1,423.19, reached Sept. 21. Meanwhile, the Standard & Poor's 500 index fell 2.60, or 0.3 percent, to 973.54, also trading much of the session below its Sept. 21 low close of 965.80. An announcement from WorldCom that it disguised $3.8 billion in expenses last year and early in 2002 shook a market already mistrustful about corporate accounting following the collapse of Enron Corp. and revelations of bookkeeping irregularities at other companies.

2004 budget shortfalls { August 24 2003 } Brace for shock at pump Deflation at bay { August 12 2003 } Deflation biggest myths { August 12 2003 } Disappearing jobs outsourcing consolidation Dollar rebound temporary { August 24 2003 } Dow plunges below 9000 worldcom scandal Economy boom coming { August 29 2003 } Economy shows signs picking up Economy spurred by defense spending Estimate 480b 2004 deficit { August 26 2003 } Forcast 400b deficits this year { July 14 2003 } Greenspan defends deflation worries Greenspan not liking deficit Imf says us too upbeat { August 27 2003 } Imf warns significant downside risks { August 27 2003 } Jobless rate nine year high Jobless woes send stocks down { August 1 2003 } Jobs being taken abroad Markets treading water at 9000 mark { August 6 2003 } Nations job plight worsens { August 2 2003 } Rally after 3 days declines { July 19 2003 } Recession devastating ohio jobs Road to deflation Salvage sell off bond market Stocks end up on banks { July 14 2003 } Stocks fell manufacturing news Stocks ready for global five year high { June 27 2003 } Stocks rise on news of saddam sons dead Stocks slide rising interest rates { August 5 2003 } Us tech jobs go to india Files Listed: 31

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