AOL warning hits shares

WEAKNESS in AOL Time Warner after a profit warning for its online unit, coupled with a decision

Around 11.45 am ET, the Dow Jones industrial average, down 121.98 to 8740.59, the Nasdaq composite, down 35.30 to 1449.48 and the Standard & Poor’s 500 index, down 13.66 to 920.87, all registered losses. US stocks have started the first days of December lower after gaining for eight straight weeks.

“I think we have gotten ourselves into a classic year-end speculative mentality,” said David Briggs, head of equity trading at Federated Investors.

“I really think the market has gotten ahead of itself. People really started buying on hope. I don’t rule out some year-end euphoria, but I don’t think the market has a lot more upside to it.”

On the New York Stock Exchange, decliners beat advancers about 3 to 2 as 495 million shares changed hands. On the Nasdaq, losers beat winners more than 2 to 1 as 630 million shares traded.