Dow tumbles nearly 250 points

Investors have shown a lack of faith in corporate America's accounting practices, sending the Dow Jones tumbling nearly 250 points.

It closed down 247.51, or 2.5%, at 9,618.24, while 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, and the Russell 2000 index slipped 7.30, or 1.5%, to 473.98.

Analysts said Wall Street, already jittery about the timing of an economic recovery, was concerned that companies including 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.

Tyco tumbled $8.35, or 19.9%, to $33.65 on worries that it is carrying so much debt on its balance sheets that it will be unable to grow.

The selling intensified on a Wall Street Journal report that the company had paid $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.

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

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.

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