With confidence badly shaken by the selling in Treasuries and tension high ahead of next week's
Federal Open Market Committee
meeting next Tuesday, stocks closed not too far from their session lows. It was a very bad day.
Dow Jones Industrial Average
fell 193.87, or 2%, to 10,913.32, while the broader
dropped 29.76, or 2%, to 1337.80.
The basic rule for the day was the higher the multiple the higher the fall. While the damage on the value and cyclical side of things was limited, traditional growth areas like tech and drugs were hurt badly. The tech-tumescent
Nasdaq Composite Index
fell 54.13, or 2%, to 2527.87, while the
American Stock Exchange Pharmaceutical Index
fell 11.90, or 3%, to 369.50.
Those Uber-growth issues, the .coms, also took their lumps.
TheStreet.com Internet Sector
index fell 12.17, or 2%, to 629.53.
fell 7.71, or 2%, to 443.13.
The 30-year bond fell 2 6/32 to 90 24/32, lifting the yield up to 5.92%.
Major European indices finished lower, with London's
having gotten the worst of it, off about 2.4%. Asian markets slumped overnight, with Hong Kong's
slipping 198.15 to 12,855.52. Tokyo's
dropped 40.86 to 16,810.39 as Governor
Bank of Japan
will maintain its easy money policy until deflationary concerns have subsided.
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is cutting between 6,500 and 7,000 jobs at its St. Louis military aircraft plant because of a dearth of orders for F-15 fighter jets. The cuts come after
last month won a $3.5 billion contract to supply Greece with F-16s, and Israel postponed a $2.5 billion F-15 order two weeks ago.
Dutch agricultural and construction equipment maker
is in merger talks with Wisconsin-based
The Wall Street Journal
reported, citing people familiar with the matter.
Personal effects and nutrition product marketer
Nu Skin Enterprises
filed with the
Securities and Exchange Commission
for a secondary offering of 10 million Class A common shares, the proceeds going to the family of company founder and Chairman Blake Roney.
U S West
is lifting a bit after
reported that it has held merger talks with undersea fiber-optics firm
. U S West rose 2 1/4 to 62 1/4, while Global Crossing advanced 15/16 to 61 3/8.
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last night set a pact to speed up the deployment of broadband Internet services. Under the deal, @Home will use the
operating system in its
network, which brings high-speed Internet access to small markets.
Networking gear maker
is rumored to be a takeover target, according to
Inside Wall Street column. The magazine identified possible bidders as
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Consumer Price Index
, which unexpectedly rose 0.7% for the month of April, 0.3 percentage points above expectations and up from the previous month's 0.2% increase. The core rate, which excludes food and energy costs, jumped 0.4%, 0.2 percentage points above the forecast and up from last month's 0.1% jump.
war planes knocked out electrical power in several districts of Yugoslavia's three largest cities: Belgrade, Nis and Novi Sad. Meanwhile, Yugoslav media claimed that NATO cluster bombs killed as many as 100 civilians in the village of Korisa, Kosovo. The alliance said it was looking into the report.
said the bank will not approve new loans to Russia until the dust settles from Russian President
firing of his government two days ago. In the balance hangs a $4.5 billion
International Monetary Fund
loan and another $1.85 billion due from the World Bank.
set plans to spin off its auto transmission development business in July to a new subsidiary called
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After seven seasons,
has pulled the plug on its critically acclaimed
Homicide: Life on the Street
. The last episode will run next Friday.
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