The Dow Closes Below 10,000
09/27/04 - 04:41 PM EDT
A. Teymour Golsorkhi
Shares of apparel maker Tommy Hilfiger (TOM Quote - Cramer on TOM - Stock Picks) plunged after the company said it is the subject of a grand jury investigation of certain payments to offshore entities. The company said it is cooperating with the probe, which also involves certain employees, but can't predict the outcome of the investigation. Shares of Tommy Hilfiger fell $2.87, or 21.8%, to $10.30.
Looking ahead to corporate earnings, Standard & Poor's said the third-quarter estimate for S&P 500 companies is $16.42 a share. "While the earnings growth has slowed relative to the first- and second-quarter 2004 increases, the 13.9% gain continues the momentum that has produced record earnings," said S&P equity market analyst Howard Silverblatt. For the fourth quarter, Silverblatt expects growth to increase to 15.5%, which would translate into 2004 earnings growth of 21.5%. For 2005, S&P sees earnings growth slowing to 8.7%. On the economic front, new home sales jumped 9.4% in August, the biggest gain in about four years, to an annual rate of 1.184 million homes. The consensus forecast was 1.155 million units. July's level was revised lower from 1.134 million to 1.082 million. Overseas markets were lower, with London's FTSE 100 losing 0.8% at 4541.20 and Germany's Xetra DAX down 0.9% to 3874.37. In Asia, Japan's Nikkei fell 0.3% overnight to 10,859.32, while Hong Kong's Hang Seng fell 0.3% to 13,021.90.
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