Wall Street report: Tues open
US STOCKS dropped in opening trade as sentiment buckled under the weight of heated talk of a second Gulf War and apprehension over the fragile economic recovery.
The Nasdaq Composite Index lost 12 points, or 1.02%, to 1,172, after closing yesterday below 1200 for the first time since September 1996. The blue-chip Dow Jones industrial average fell 115 points, or 1.47%, to 7,756. The broader Standard & Poor's 500 Index slid 9 points, or 1.19%, to 823.
The growing threat of war and gnawing fears over the pace of the economic recovery drew more sellers a day after a steep drop in the market. The Conference Board's monthly Consumer Confidence Index will draw attention, but the data may not offer much solace.
Aiming to win support for the US case for a possible attack on Iraq, Prime Minister Tony Blair said Iraq had the means to launch a weapon of mass destruction at 45 minutes' notice.
His words came the same day the US Federal Reserve is expected to wrap up a policy-setting meeting by standing pat on interest rates and sticking to its assessment that economic risks are tilted toward more weakness.
General Electric fell 75 cents, or almost 3%, to $25.65 and ranked as the most active share on the New York Stock Exchange. Investment bank JP Morgan cut its 2003 earnings per share view on the conglomerate.
Lehman Brothers fell 99 cents to $47 after the investment bank reported third-quarter earnings that fell below analysts' expectations.
IBM declined $1.85 to $61.52 on a bearish brokerage report from Morgan Stanley.
And Xerox dropped 85 cents to $5.82 after the company said federal prosecutors were opening a criminal inquiry into the company's accounting practices.declined $1.85 to $61.52 on a bearish brokerage report from Morgan Stanley.
