U.S. stocks fell for a second day in three amid concern that the gains of the past two weeks have driven prices higher than justified by the outlook for corporate profit growth.
The Dow Jones industrial average fell 176.93, or 2.1 percent, to 8317.34; the Nasdaq composite index fell 21.52, or 1.6 percent, to 1298.71; and the Standard & Poor's 500-stock index fell 13.64, or 1.5 percent, to 882.50.
Stocks extended their decline after a West Virginia jury found Dow Chemical's Union Carbide unit responsible in thousands of asbestos-related deaths and illnesses. Other companies with potential asbestos liability, such as 3M and Georgia-Pacific, also fell.
Viacom, owner of the CBS, MTV and Nickelodeon television networks, dropped $2.90, to $44.28, after a Morgan Stanley analyst downgraded the stock.
Viacom was also hurt after WPP Group, the world's No. 3 advertising and marketing company, said revenue fell and Lehman Brothers downgraded Omnicom Group. Omnicom slid $4.27, to $59.13.
International Paper fell 90 cents, to $36.84. A Prudential Securities analyst said he expects the forest-products firm to reduce costs to offset soft demand, lower selling prices and pension expenses. He lowered his recommendation to "sell" from "hold."
Duke Energy shed $1.06, to $19.08. The second-biggest utility owner said earnings in the third quarter plunged 71 percent as power prices tumbled and energy trading slumped. The company said profit may fall in 2003.
Household International fell $3.62, or 14 percent, to $22.83. Some investors are concerned that the biggest U.S. lender to homeowners with a history of unpaid bills may face higher borrowing costs.
Dow Chemical dropped $2.60, to $24.94. The asbestos verdict may expose the company to millions of dollars in punitive damages.
3M, which has settled about 200,000 lawsuits related to asbestos over the past 20 years, slid $3.68, to $125.68. Georgia-Pacific, which has costs of $132 million this year from lawsuits related to the cancer-causing mineral, lost 82 cents, to $11.68.
Tyco rose $1.55, to $15.49. David Boies, a lawyer assisting in a review of Tyco, said that an internal audit is about 60 percent complete and that he doesn't expect "a very large fraud" to be uncovered. An investigation into the company's accounting resulted in its lowering profit by about $133 million for the first nine months of its fiscal year.
* The New York Stock Exchange composite index fell 6.23, to 472.22; the American Stock Exchange index fell 8.86, to 812.66; and the Russell 2000 index of smaller-company stocks fell 2.93, to 366.02.
* Declining issues outnumbered advancing ones by 5 to 4 on the NYSE, where trading volume rose to 1.7 billion shares, from 1.61 billion on Wednesday. On the Nasdaq, decliners outnumbered advancers by 8 to 7 and volume totaled 1.89 billion, up from 1.55 billion.
* The price of the Treasury's 10-year note rose $7.19 per $1,000 invested, and its yield fell to 4.13 percent, from 4.24 percent on Wednesday.
* The dollar fell against the Japanese yen and the euro. In late New York trading, a dollar bought 124.60 yen, down from 124.63 late Wednesday, and a euro bought 97.73 cents, up from 97.66.
* Light, sweet crude oil for December delivery settled at $28.20 a barrel, up 2 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $310.70 a troy ounce, from $312.00 on Wednesday, on the New York Mercantile Exchange's Commodity Exchange.