Disney drags Dow down

DATA from the services sector, which was better-than-expected, couldn't outweigh an earnings warning from Disney or negative comments from tech analysts that pulled the chip sector lower and led to declines in the Dow and Nasdaq yesterday.

Around 11.30 am ET, the Nasdaq composite, down 31.53 to 1417.43, fell more than 2%. The Dow Jones industrial average, down 55.81 to 8687.12 and the Standard & Poor's 500 index, down 7.81 to 912.94, also registered declines.

Disney, down $0.91 to $17.63, warned after the closing bell Tuesday that its fiscal 2002 profit would be revised lower and its first quarter would be weaker than previously forecast, citing lower-than-expected revenue from its recently released film Treasure Planet.

The firm also announced a probe by the Securities and Exchange Commission into the independence of some of its directors.

Market breadth was negative. On the New York Stock Exchange, decliners beat advancers about 9 to 5 as 550 million shares traded. On the Nasdaq, losers beat winners 7 to 3 as 771 million shares changed hands.