US stocks end mixed
A jetliner crash in New York today gave Wall Street a sharp reminder that more terrorist attacks are possible and prompted shaken investors to refrain from any major moves.
The stock market ended the day mixed, recovering from a steep drop as news reports indicated terrorism did not appear to be the cause of the crash.
‘‘Fears are running high,’’ said Alan Ackerman, executive vice-president of Fahnestock & Co. ‘‘We’re dealing with a bruised US psyche, whether it is at the consumer level or the investor level. One can only hope that this plane crash had nothing to do with terrorism.’’
The Dow Jones industrial average closed down 53.63, or 0.6%, at 9,554.37. The Dow dropped as much as 198 in very early dealings. The American Airlines plane crashed at 9.17am (1417 Irish time), 13 minutes before the stock market opened.
The broader market was mixed. The Nasdaq composite index rose 11.65, or 0.6%, to 1,840.13, having been down as much as 42. The Standard & Poor’s 500 index slipped 1.98, or 0.02%, to 1,118.33, having declined as much as 21.
The cause of the crash, which occurred near Kennedy Airport, was not immediately known. However, some investors, worried that it might have been the result of a terrorist attack, began selling immediately.
By early afternoon the market had recovered much of its losses as reports indicated that terrorists were not involved. Witnesses reported hearing and seeing an engine fall off, and investigators suggested the noise was caused by a catastrophic mechanical failure. And a senior Bush administration official said: ‘‘It’s looking like it’s not a terrorist attack.’’
Analysts were encouraged by the market’s recovery, especially since stocks were expected to pull back after rallying for several weeks.
‘‘The market’s resiliency is pretty impressive especially after last week’s advance,’’ said Jon Brorson, director of equities at Northern Trust.
Investors had been buying on increasing confidence about an economic turnaround in 2002. On Friday, the Dow posted its best close since the September 11 terrorist attacks, joining the rest of the market’s major indicators in closing above its pre-attack level.
But analysts said other investors, wary of making bigger commitments to stocks until terrorism is officially ruled out as a cause of Monday’s crash, sat the session out, making volume lighter than usual. Meanwhile, investors could not turn to the safety of bonds, because the government bond market was closed today in observance of Veterans Day.
Among Wall Street’s biggest losers today were airlines and the companies that supply them. American’s parent AMR fell dlrs 1.64 to dlrs 16.49, and Delta sank dlrs 2.72 to dlrs 23.27.
General Electric, which made the engines in the plane that crashed, fell 98 cents to dlrs 39.43. United Technologies, also a supplier of jet engines, tumbled dlrs 1.76 to dlrs 55.30.
Leisure-related stocks also suffered amid fears that consumers will take fewer holidays. Marriott International declined dlrs 1.50 to dlrs 32.50 and Expedia, an online travel agent, tumbled dlrs 1.26 to dlrs 29.96.
Advancing stocks included companies that initiated cost-cutting measures or indicated business could be improving. Optical networker Ciena rose dlrs 1.65 to dlrs 18.83, after reaffirming fourth-quarter earnings expectations in line with analysts’ forecast and announcing 380 job cuts.
Energy companies Dynegy and Enron traded higher on news that they will merge. Dynegy surged 14 percent, up dlrs 5.55 at dlrs 44.31, while Enron gained 61 cents to dlrs 9.24.
Declining issues narrowly outnumbered advancers 16 to 15 on the New York Stock Exchange. Volume came to 977.27 million shares, below the 1.10 billion shares traded on Friday.
The Russell 2000 index, which tracks smaller company stocks, rose 2.38, or 0.5%, to 440.48.
