The market is ending the week in pain, as the major indices are all sliding on earnings warnings and concern about high energy prices. This morning's most prominent downgrade was on Great Atlantic Pacific & Tea Group( GAP), better known as A&P.
Dow Jones Industrial Average was 57 lower to 11,203.
Nasdaq Composite Index was down 80 to 4018, tee-tottering near the psychologically important 4000 level.
, which rose in preopen action on news it had entered a deal with PC-maker
, was the most active stock on the Nasdaq. BroadVision was lately down 2.9% to $36.81.
The other major indices were also deep in the red, with the broad market
S&P 500 off 10 to 1493 and the small-cap
off 5 to 538.
TheStreet.com Internet Sector
index was 21 lower to 817.
Wall Street is particularly worried now about slowing corporate earnings growth. Higher energy prices, higher wages and other forms of inflation are starting to erode corporate profits. The last few months of economic data have generally shown a moderation in economic activity, and the season of earnings warning is fast approaching. Companies expecting to miss earnings estimates tend to warn right before quarterly earnings are released, or beginning in early October.
Investors may be afraid that rising crude oil prices will continue to bite into corporate profits, particularly after chemical bellwether
partly blamed oil costs for the profits warning it issued yesterday morning.
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Retail stocks were one of the few sectors getting a lift this morning, after
Morgan Stanley Dean Witter
upgraded several clothing retailers, including
Abercrombie & Fitch
. TJX was 4.1% higher, Limited was up 3.8% and Abercrombie was up 3.7%. The
S&P Retail Index
was up 2.4%.
Commodity-related indices were having a hard time today, as the
Philadelphia Stock Exchange Oil Service Index
was down 2.8% and the
Amex Oil & Gas Index
dropped 1.9%. The
Philadelphia Stock Exchange Forest & Paper Products Index
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The 10-year Treasury note has been relatively volatile this morning, lately up 3/32 at 100 2/32, and yielding 5.741%.
Treasuries fell for the third session in a row yesterday as investors reacted to rising oil prices and the upcoming heavy issuance of corporate bonds.
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