Wall Street Stocks End Sharply Lower

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Last updated at: (Beijing Time) Tuesday, April 23, 2002

Wall Street Stocks End Sharply Lower

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Wall Street stocks ended sharply lower Monday, with the Nasdaq index falling for the fourth straight session, amid investors' worries about weak earnings in the telecommunications sector after Lucent Technologies and Ericsson reported heavy losses, and WorldCom lowered its revenue forecast in 2002.

The Dow Jones industrial average dropped 120.68 points, or 1.18 percent, to 10,136.43, after rising 51.83 points on Friday last week.

Broader stock indicators were down. The technology heavy Nasdaq composite index tumbling 38.15 points, or 2.12 percent, to 1,758. 68. The Standard & Poor's 500 index fell 17.34 points, or 1.54 percent, to 1,107.83.

The market was on the way down after a lower opening as investors were concerned about corporate earnings, especially in the telecommunications sector, after WorldCom announced late Friday that the company cut 1 billion U.S. dollar from its revenue forecast in 2002. WorldCom plunged 1.97 dollars, or 33 percent, to 4.01 dollars.

Ericsson tumbled 80 cents, or 22.6 percent, to 2.74 dollars as the company announced to cut up to 20,000 jobs and reduced its earnings forecasts for future quarters after reporting a heavy loss in the first quarter. Lucent Technologies climbed 20 cents to 4.49 dollars as its quarterly loss excluding special items narrowed to 671 million dollars from 1.4 billion dollars a year earlier.

Telecommunications issues were generally lower, with Nextel Communications declining 61 cents, or 11.4 percent, to 4.74 dollars, Nokia losing 1.14 dollars, or 6 percent, to 16.30 dollars, and Qwest Communications International falling 20 cents to 6.40 dollars.

In the technology sector, Microsoft fell 1.61 dollars to 55.59 dollars, Cisco Systems slipped 39 cents to 14.87 dollars, Sun Microsystems skid 49 cents to 8.66 dollars, Oracle decreased 50 cents to 11.43 dollars, and Intel edged down 4 cents to 30.06 dollars.

The NYSE index closed down 7.73 points at 586.05, the American Stock Exchange index eased 3.14 points to 921.58, and the Russell 2000 index of smaller companies lost 6.47 points to 510.93.

Declining issues outnumbered advancers by a 5-to-3 margin on the New York Stock Exchange, with 1,198 up, 1,971 down and 194 unchanged.

NYSE trading volume decreased to 1.17 billion shares from 1.19 billion in the previous session.

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