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Stocks sent sliding on rash of bad news { October 23 2004 } Original Source Link: (May no longer be active)
http://www.indystar.com/articles/6/188730-4316-223.htmlhttp://www.indystar.com/articles/6/188730-4316-223.html
Stocks sent sliding on rash of bad news
Star news services
October 23, 2004
U.S. stocks fell sharply as record oil prices and disappointing sales forecasts from Microsoft Corp. spurred losses in technology shares. The Dow Jones industrial average dropped to its lowest close this year.
Worries about corporate earnings combined with oil topping $55 a barrel to double down on the Dow and Nasdaq.
The Dow lost 107.95, or 1.1 percent, to 9,757.81, its lowest close since Nov. 24. Twenty-eight of the index's 30 stocks fell. The tech-laden Nasdaq Composite Index slid 38.48, or 2 percent, to 1,915.14, its biggest drop since Aug. 6.
Several Indiana stocks dropped by 1.5 percent or more. Cummins Inc. declined $1.51 a share, to close at $66.25. Eli Lilly and Co. gave up 79 cents to close at $51.85. Marsh Supermarkets lost 17 cents to close at $10.82. Guidant and Anthem shares rallied after sell-offs earlier this week.
"A lot of companies have adjusted their expectations down for 2005 and people aren't going to take that very nicely," said Douglas Ober, who manages the $1.2 billion Adams Express Co. fund in Baltimore. "What people want to know is what the price of oil is going to be and who's going to be president. Until we get those things resolved, we're sort of in limbo."
Oil prices again pressured the market, casting doubt not only on fourth-quarter earnings, but also on the health of the economy as a whole. A barrel of light crude was quoted at $55.17, up 70 cents, on the New York Mercantile Exchange.
"These oil prices are really going to bite the consumer at some point. Heating oil is up, it's supposed to be a very cold winter in the Northeast, and lower and middle income people are going to pay," said Russ Koesterich, U.S. equity strategist at State Street Corp. "Combine that with a total lack of fundamentals in the big name stocks, and there are very few places left to hide for investors."
Shares of Google surged in early trading as the online search giant doubled both revenues and profits from a year ago. Like its initial public offering two months ago, Google was one of the few bright spots in an otherwise depressed market.
For the week, the Dow lost 1.77 percent, and the S&P dropped 1.12 percent, while the Nasdaq gained 0.19 percent.
Google's earnings impressed analysts, with Prudential raising the company's target stock price to $200 early Friday. Google skyrocketed $23.05, or 15.4 percent to $172.43.
Dow component Microsoft slipped 82 cents to $27.74 after beating Wall Street estimates by 2 cents per share before one-time charges. Analysts were concerned about a drop-off in long-term contract revenues, a possible sign that demand for the company's software was waning as companies waited for a long-delayed update of the Windows operating system.
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