Updated from 3:38 p.m. EST
Sellers won the day on Wall Street for the first time in 2002 and the major averages ended near their worst levels of the session as mixed comments from analysts and profit warnings curbed investors' recent optimism.
Dow Jones Industrial Average closed down 62.69 points, or 0.6%, to 10,197.05. The
Nasdaq lost 22.27 points, or 1.1%, at 2037.11, and the
S&P 500 fell 7.62 points, or 0.7%, at 1164.89.
After a lengthy search,
said Monday it is bringing Patricia Russo back to the company to be its new chief executive. Russo has been president of
. Previously she worked at Lucent and former parent
for about 20 years. Lucent was down 16 cents at $6.94, while Dow component Kodak shed 95 cents, or 2.6%, to $27.94.
Also dragging the Dow lower was
, which J.P. Morgan downgraded, citing macro-economic weakness. The soda and drinks maker's shares were off $1.22, or 2.6%, to $45.21.
was up 26 cents, or 2.3%, to $11.65 after predicting it would be profitable in the fourth quarter. Analysts had been expecting a loss.
gained 3 cents to $29.62 on a Robertson Stephens upgrade.
said Friday it will resume production at two of its North Carolina plants, suggesting to some the company is seeing a pickup in demand. But the company said it still sees flat growth through 2002 as it strives to work down inventory. Shares of the fiber optic-cable maker fell 20 cents, or 1.9%, to $10.50.
warned that it will record a core loss of 4 cents to 6 cents a share in the fourth quarter on revenue of about $51 million. Analysts were expecting the company to post a loss of 2 cents a share on revenue of $68 million. Shares of the e-commerce software firm fell 26.5% to $4.02.
Lehman Brothers upgraded
to a strong buy from a buy rating and raised its price target to $87. The firm believes the stock will benefit from new product launches and quicker FDA decisions. The stock traded up 7 cents at $56.69.
was under heavy pressure as a downgrade by J.P. Morgan sparked yet more selling, extending the stock's recent sharp decline on bad news about the company's experimental cancer drug Erbitux. J.P. Morgan cut the stock's rating to market perform from buy. Its shares dropped 17.6% to $35.83.
Analysts at ABN Amro upgraded
to a buy rating from an add, citing an increase in IT spending and an increase in sales of its WindowsXP products. Shares of the software giant gave back 34 cents to $68.56.
European markets were lower, with London's FTSE 100 down 0.6% at 5294 and Germany's Xetra Dax down 1.6% to 5232. Asian stocks were mostly higher with much of the strength coming from bank shares. Japan's Nikkei closed up 0.7% to 10,942, its highest level in nearly six weeks. Hong Kong's Hang Seng rose 1.6% to 11,893, pushing the measure to a one-month high.
Meanwhile, Argentine president Eduardo Duhalde set plans to devalue the country's currency by 29% in an effort to bolster domestic production and ease the nation's fiscal woes. The government will fix the peso at 1.4 per dollar for most of its business transactions, unlocking it from the previous 1-to-1 ratio.
Treasuries were higher. Around 4 p.m. EST, the 10-year note was gaining 17/32 to 99 19/32, yielding 5.05%.