Stocks dip after comments

SOBER comments about the economy

Fri, 13 Sep, 2002 - 01:00

Federal Reserve Chairman Alan Greenspan and a speech President Bush about the situation in Iraq were among the factors unnerving investors, knocking stocks lower at midday yesterday.

Around 11:50 a.m. ET, The Dow Jones industrial average fell 131.77 to 8,449.40. The Nasdaq composite index lost 22.41 to 1.293.04. The Standard & Poor's 500 index dipped 13.91 to 895.54.

"I think Bush's comments are having an impact as there is a lot of uncertainty about how and when and who should deal with Iraq.

“But in the short-term, the jobless claims and the comments from Greenspan are having a bigger impact,” said John Davidson, president and chief executive officer of PartnersRe Asset Management.

“Greenspan talked very little about the current state of the economy and was really admonishing lawmakers and he made it very clear there will be no interest rate cut announced after the meeting on Sept. 24,” Davidson added.

Market breadth was negative. On the New York Stock Exchange, decliners beat advancers 8-to-3 as 469 million shares changed hands. On the Nasdaq, losers topped winners 7-to-3 as 515 million shares traded.

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