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Nasdaq plunges 100 points
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September 18, 2000: 5:03 p.m. ET
Revenue growth woes, oil, euro spark broad selling; Dow down
By Staff Writer Catherine Tymkiw
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NEW YORK (CNNfn) - The Nasdaq composite index lost nearly 3 percent Monday, plunging to its lowest level in six weeks as investors dumped technology stocks, nervous that rising energy prices and a weak euro may bring more revenue warnings.
The selling was broad-based with the Dow Jones industrial average also falling more than 1 percent.
"Energy prices, earnings and the fall of the euro all continue to add to that wall of worry and the market is trapped here in a sea of uncertainty," said Peter Cardillo, director of research at Westfalia Investments. "There are no buyers and the selling just feeds on itself."
 The Nasdaq composite index fell 108.71 to 3,726.52. Since Labor Day, the index is down 12 percent, or nearly 500 points. The Nasdaq is now at its lowest point since Aug. 2.
On a technical basis, the Nasdaq has broken through its support level, possibly opening the door for further downside potential, analysts said. It is sitting at levels not seen since the beginning of August.
 The Dow Jones industrial average slid 118.48 to 10,808.52, while the S&P 500 slipped 21.30 to 1,444.51.
"We rallied off the fact that we had a slow economy in August and here, in September, we're now seeing the reality of that," said Bryan Piskorowski, market analyst at Prudential Securities. "Combined with the fact that the euro has lost 14 percent against the greenback this year is really casting a pall on equities."
Market breadth was negative. On the New York Stock Exchange, decliners dominated advancers 2,216 to 684 as more than 907 million shares changed hands. On the Nasdaq, losers routed winners 3,019 to 1,048 as more than 1.5 billion shares were traded.
Treasury securities were mixed, while the dollar was little changed against the euro but slipped versus the yen.
Euro dulls Gillette, and techs
As corporate results start trickling in, warnings continue to lead the sellers.
"People are just a little bit concerned that stocks they hold may announce any day because, if you are doing business anywhere outside the U.S., the euro is certainly going to have a negative impact," said Bill Meehan, chief market analyst at Cantor Fitzgerald.
Gillette (G: Research, Estimates) slid $2.19 to $27.63 after it warned that the weak euro will hurt its third-quarter profits by about a penny a share.
The Nasdaq fell under heavy selling pressure as investors dumped tech leaders with a multinational presence. Cisco Systems (CSCO: Research, Estimates) fell $2.69 to $60.06, Oracle (ORCL: Research, Estimates) lost $1.84 to $76.47, and WorldCom (WCOM: Research, Estimates) shed 75 cents to $28.69.
But Bernie Schaeffer, chairman of Schaeffer Investment Research, told CNNfn's Market Call that all the concerns affecting the markets actually make him optimistic. (425K AIFF) (425K WAV).
Rockwell International (ROK: Research, Estimates) fell $7.63 to $30.50 after saying its earnings for the fiscal year ending this month will miss Wall Street forecasts. Rockwell said its full-year earnings will be about $3.35 per share, 9 cents below analysts' consensus expectations of $3.44 per share compiled by First Call. The company earned $3.01 per share in the prior year.
 The Dow was led lower by a sharp decline in J.P. Morgan (JPM: Research, Estimates), which lost $9.06 to $165.44. Other financial issues also fell; Citigroup (C: Research, Estimates) shed $1.56 to $53.50 and American Express (AXP: Research, Estimates) slid $1.31 to $58.
Also hurting the Dow, 3M (MMM: Research, Estimates) tumbled $1.94 to $83.19. While no cautionary statements have been issued, currency concerns were driving momentum investors to sell the multinational diversified manufacturing company, analysts said.
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"The biggest fear is earnings going forward," said Art Hogan, chief market analyst at Jefferies & Co. "All the consumer non-durable multinationals are going to have to warn about the ill effects of the strong dollar versus the weak euro, but that's cyclical."
Surging oil prices unnerve investors
Rising oil prices have worried investors, causing concerns about the adverse effects that rising fuel costs will have on corporate profits.
"From a 'wall of worries' standpoint, the market needs to be assured that there are no other casualties out there that are going to report weaker earnings, and from an energy standpoint, prices have got to move lower," said Westfalia's Cardillo.
U.S. light sweet crude for October delivery rose 93 cents to $36.85 a barrel in afternoon trading on the New York Mercantile Exchange, briefly touching a 10-year high. London's benchmark Brent for November delivery gained 73 cents to $34.71 a barrel.
Cadbury snaps up Snapple
Britain's Cadbury Schweppes agreed to acquire Snapple Beverages Group from Triarc Companies (TRY: Research, Estimates) for $1.45 billion in cash and debt to expand its portfolio in the U.S. soft drink market. The deal includes such beverage brands as Snapple, Mistic, Stewart's and Royal Crown Cola.
 Triarc gained 75 cents to $25 while American depositary shares of Cadbury Schweppes (CSG: Research, Estimates) fell 19 cents to $22.31. 
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