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The Honolulu Advertiser

Posted at 12:08 p.m., Thursday, June 20, 2002

Warnings prompt sharp stocks selloff

Hawai'i Stocks
Updated Market Chart

By Lisa Singhania
Associated Press

NEW YORK – Wall Street came the closest yet to its post-terrorist attack lows today with a sharp selloff provoked by another round of warnings – this time from Genzyme and Nokia. The Dow Jones industrials fell triple-digits for a second session, while the Nasdaq composite index and Standard & Poor's 500 fell to levels last seen in late September. Even a slightly higher-than-expected increase in the Index of Leading Economic Indicators, a key indicator of economic activity, failed to inspire an advance. Analysts said the combination of mediocre earnings prospects and turmoil overseas is keeping investors away

"There's no confidence among investors and it shows, because you get one up day and then you give it back again over the next couple," said Robert Froehlich, chief investment strategist for Deutsche Asset Management. "Two years ago, everywhere you looked there was a reason to invest. Today, everywhere you look there is a reason not to invest."

The Dow Jones industrial average closed down 129.80, or

1.4 percent, at 9,431.77, according to preliminary calculations, its lowest close since Nov. 2, when the average stood at 9,323.54. It was the average's fourth triple-digit loss in eight sessions. The Dow has fallen 274.35 points over the last two days.

The Nasdaq composite index lost 32.08, or 2.1 percent, to 1,464.75. The index last finished lower on Sept. 27, when it was 1,460.71.

The Standard & Poor's 500 index dropped 13.70, or 1.3 percent, to 1,006.29. The index last closed lower on Sept. 24, at 1,003.45.