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Sun, Feb 03, 2002 - Page 10 News List

Stocks drop over concerns about weak earnings in Q4

US EQUITIES Microsoft and Citigroup shares fell on indications that it may take longer than expected for corporate profits to regain strength this year

BLOOMBERG , NEW YORK

The company demanded a correction, calling the reporting ``inaccurate and irresponsible.''

Investor concern that companies have masked slowing profit growth or concealed losses sent shares of Tyco down 18 percent and American International Group down 6.1 percent this week.

Financial shares led the S&P 500's decline.

Morgan Stanley Dean Witter & Co fell US$1.59 to US$53.41. The second-biggest securities firm's Japan unit received a five-week ban from trading stocks for its own account for violating securities regulations.

JP Morgan Chase & Co fell US$1.89 to US$32.16, and Citigroup slid US$0.91 to US$46.49.

Viacom Inc slid US$1.53 to US$38.40 as investors speculated that President Mel Karmazin will leave the third-largest media company next year because of a disagreement with Chief Executive Officer Sumner Redstone. Shares have dropped 30 percent the past year on slowing profit growth and speculation the two executives were feuding.

Microsoft, the world's largest software maker, dropped US$1.05 to US$62.66.

WorldCom Inc dropped US$0.44 to US$9.61 and was the most-active stock with 74 million shares trading. Chief Executive Bernard Ebbers may have to repay as much as US$183.7 million in loans backed by 11.3 million in WorldCom shares after the stock hit a seven-year low of US$9.85 on Wednesday.

Adobe Systems Inc rose US$2.23 to US$35.93. The maker of Photoshop photo-editing software maintained its first-quarter profit forecast for this year.

Computer Sciences Corp rose US$1.80 to US$46.30. The third-biggest US computer-services company said fiscal third-quarter profit rose as it cut costs and gained more business managing corporate and government computer systems.

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