Updated from 3:31 p.m. EST
Virtual certainty about the year's 11th interest rate cut failed to ignite enthusiasm for stocks Monday and the
Dow Jones Industrial Average headed south for a third straight session, falling through the psychologically important 10,000 level.
Lingering concerns about corporate profitability were also pressuring tech shares and the
Nasdaq wasn't able to stay above 2000.
The Dow closed down 128.01 points, or 1.3%, to 9921.45, while the Nasdaq slid 29.14 points, or 1.4%, to 1992.12. The
S&P 500 was off 18.38 points, or 1.6%, to 1139.93.
Market watchers generally expect the
Federal Open Market Committee to cut the
fed funds target rate by 25 basis points to 1.75% when the group meets Tuesday.
European stocks declined, with London's FTSE 100 losing 1.5% to 5185, while Germany's Xetra Dax closed down 1.4% to 5125. Asian stocks were mostly lower in the wake of Friday's employment report, which brewed skepticism of a U.S.-led recovery. Japan's Nikkei closed down 2.1% to 10,571, while Hong Kong's Hang Seng ended the session off 0.4% to 11,785.
The proposed merger between
severe blow on Friday when the David and Lucile Packard Foundation revealed plans to vote against the pairing. Shareholders are expected to weigh in on the merger next month. Shares of the computer hardware and PC makers were active, with Compaq losing $1.63, or 14.4%, to $9.69 and H-P dropping 60 cents, or 2.5%, to $22.92.
are reportedly in the process of finalizing separate bids to acquire
trading operation, according to
The Wall Street Journal
. Enron traded up 6 cents, or 8%, to 81 cents.
Protein Design Labs
saw its shares fall after its Remitogen drug, which is designed to treat lymphoma, failed to stop progression of the cancer in Phase II clinical testing. The company said that out of 25 patients evaluated, only one patient showed a partial response to the drug, while 14 patients saw their lymphoma progress. Subsequently, SG Cowen downgraded the biotech firm to a buy rating from strong buy. The stock was under heavy pressure, falling $7.21, or 19%, to $30.74.
reaffirmed previously lowered guidance, saying it still expects sales for the second quarter to be 10% to 15% below the $329 million reported for the first quarter. Shares of the networking company fell 58 cents, or 5.5%, to $9.95.
shares were up $2.04, or 17%, to $14.04 following its announcement that insurance would cover the costs of recent asbestos verdicts against the company.
Treasuries strengthened throughout the session, the day before the Fed meeting. Around 4 p.m. EST, the 10-year note was up 15/32 at 99 7/32, yielding 5.10%.