Stocks skid as banks, computer issues slide

Dow tumbles 180 points

Nasdaq falls 2.4%

Internet brokers droop

July 30, 1999|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks slumped yesterday, led by financial and computer-related companies.

J. P. Morgan & Co. contributed most to a 180.78-point drop in the Dow Jones industrial average, falling $3.375 to $130.625.

Among other financials, American Express Co., the third-largest credit-card issuer, lost $2.6875 to $138.5625, and Merrill Lynch & Co., the biggest U.S. brokerage, fell $2.8125 to $70.875.

Dow component America Online Inc. fell $3.875 to $98.875, extending the slide in its shares that began three weeks ago.

International Business Machines Corp. lost $3 to $125.

AT&T Corp. skidded $1.4375 to $53.50. The largest U.S. telephone company said second-quarter earnings rose 8.2 percent as it boosted sales of wireless and data services.

The Dow average would have fallen more if not for gains in Procter & Gamble and 3M, both of which reported that rebounding economies in Asia boosted profits.

Procter & Gamble rose $2 to $88.125 after the largest U.S. maker of household products said its fiscal fourth-quarter earnings rose 16 percent, its biggest profit gain in more than four years. The maker of Tide detergent, which gets more than half its sales from abroad, is benefiting from rebounds in Japan and South Korea.

3M rose $1.6875 to $90.8125. The maker of Scotch tape, Post-It Notes and industrial adhesives said increased sales to U.S. highway contractors and improved sales in Asia helped 3M generate its first profit increase in seven quarters.

Microsoft Corp. dropped $3.0625 to $86.9375 to lead the Standard & Poor's 500 index's 1.8 percent fall.

The Nasdaq composite index fell 65.83, or 2.4 percent, to 2,640.01.

Intel Corp. fell 81.25 cents to $69.50; Dell Computer Corp. skidded $1.50 to $41.25; Yahoo! Inc. dropped $6 to $137; and Inc. sank $4.1875 to $101.5625.

Internet brokers, which have soared in the past year as the rising stock market lured new customers to online trading, fell the most in the brokerage industry. E*Trade Group Inc. lost $1.9688 to $32, and Charles Schwab Corp. sank $2.2031 to $45.8594.

Elsewhere on the broad market, the Russell 2,000 index, a benchmark of small-cap stocks, slid 5.03 to 441.58; the Wilshire 5,000 index slumped 212.47 to 12,265.15; the American Stock Exchange composite index skidded 5.01 to 784.59; the New York Stock Exchange composite index dropped 9.59 to 630.81; and the S&P 400 midcap index lost 6.43 to 405.63.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks fell 2.37 to 194.75.

Declining issues outnumbered advancers by an 11-to-4 margin on the New York Stock Exchange, where about 770.2 million shares traded.

Drug stocks were weaker across the board, led by Glaxo Wellcome PLC, which said it will miss its 1999 target of double-digit earnings growth. Glaxo shares fell $4.125 to $51.1875.

The yield on the 30-year U.S. Treasury bond rose 7 basis points to 6.07 percent.

Waste Management Inc. slumped $5.4375 to $26 after the No. 1 U.S. trash hauler said second-quarter earnings may come in below analysts' expectations.

Companies that provide services and equipment for oil drilling rallied as crude oil and gasoline prices surged. Smith International Inc. rose $3.1875 to $43.5625; Weatherford International Inc. gained $1.1875 to $38.50; and Transocean Offshore Inc. added $1.625 to $31.75.

Overseas, Japan's Nikkei stock average rose 1.65 percent; Germany's DAX index lost 3.4 percent; Britain's FT-SE 100 fell 2.9 percent; and France's CAC-40 fell 2.8 percent.

Pub Date: 7/30/99

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