Dow tumbles

Investors showed a growing lack of faith in corporate America’s accounting practices today, sending the Dow Jones industrials tumbling nearly 250 points on worries that more companies might be vulnerable to bookkeeping scandals.

Analysts said Wall Street, already jittery about the timing of an economic recovery, was concerned that companies including the conglomerate Tyco might suffer from the same type of balance-sheet irregularities that brought down Enron. Even stronger-than-expected consumer confidence figures failed to stop the selling.

The Dow closed down 247.51, or 2.5%, at 9,618.24. The selling snapped a four-day winning streak and brought the blue-chip index to levels not seen since mid-November. It was the biggest point drop in three months.

The losses were even more significant in broader indicators. The Nasdaq composite index fell 50.95, or 2.6%, to 1,892.96. The Standard & Poor’s 500 index dropped 32.42, or 2.9%, to 1,100.64.

‘‘On the heels of this Enron situation, people are very concerned about accounting practices,’’ said Todd Clark, head of listed equity trading at Wells Fargo Securities. ‘‘People get concerned that we may have some other companies pulling shenanigans like Enron. People don’t want to own them ... and that’s undermining confidence.’’

Tyco tumbled dlrs 8.35, or 19.9%, to dlrs 33.65 on worries that the conglomerate was carrying so much debt on its balance sheets that it would be unable to grow. The selling intensified on a Wall Street Journal report that the company had paid dlrs 20 million to one of its outside directors and a charity he controls for advice on a merger. Tyco also recently announced plans to split up, raising concerns about tax consequences.

‘‘What’s happening here is that institutions with big positions in Tyco are trying to cut their positions back and no one’s buying,’’ said Bill Barker, investment consultant at RBC Dain Rauscher. ‘‘That’s driving the stock price down.’’

Analysts said the market’s nervousness extended to General Electric, which also operates in a variety of industries. GE dropped dlrs 1.69, or 4.4%, to dlrs 36.46.

Richard Dickson, technical analyst at Hilliard Lyons, said the Enron debacle has made many investors uneasy about complicated corporate structures. Enron, which has filed for bankruptcy, is under investigation for its accounting practices.

He also said investors do not have a strong reason to buy at the moment.

‘‘There are a lot of things out there that people kind of look at and say, ‘Maybe we better just sit on the sidelines or take money out of the market’,’’ he said. ‘‘The psychology is very negative right now.’’

The Dow was also hurt by IBM, which slid dlrs 5.15, or 4.8%, to dlrs 103 on word its board had elected Samuel Palmisano as new CEO to replace Louis Gerstner.

Gerstner, who is retiring, had hinted last year that Palmisano would succeed him.

The selloff followed weeks of frustrating trading as Wall Street repeatedly tried in vain to mount a sustainable rally. Analysts blame nagging doubts about when the recovery will come and if it will be strong enough to justify the prices stocks are currently trading at. Investors were disappointed with fourth-quarter results that largely met reduced expectations but failed to show that companies see a turnaround ahead for their business.

That disappointment has made investors more inclined to sell than buy. Even two economic reports that suggested the economy is strengthening failed to inspire investors.

Wall Street shrugged off a Conference Board report showing consumer confidence improved for the second month in a row in January, helped by increased optimism about jobs and the economy. The report is closely watched because consumer confidence drives consumer spending, which accounts for about two-thirds of the nation’s economic activity.

Declining issues led advancers nearly 3 to 1 on the New York Stock Exchange. Volume was extremely heavy, well over a billion shares.

The Russell 2000 index slipped 7.30, or 1.5%, to 473.98.