Wall Street: Monday open

By THIS IS MONEY
Updated:

 

US stocks slipped in early trade, falling on technology sector downgrades that reminded investors that the economy is still quite weak. In the first half hour of trading, the Dow Jones Industrial Average was down 59.57 at 9,284.59. The Nasdaq composite index fell 27.95 to 1675.45.

Wall Street has been anxious about how the market will fare this week, when the nation's biggest companies start releasing third-quarter earning reports. While results were expected to be weak because of the economy's problems and the 11 September terrorist attacks, analysts say investors are most concerned about what companies have to say about the future.

The tech sector was weakened by analysts' downgrades. JP Morgan cut its rating on communication chip stocks, including Altera, down $1.79 at $21.36, and Applied Micro Circuits, which fell $1.33 to $11.77. Disappointing earnings also hurt financial services companies, including ING, which slid 15% to $23.97 after missing profit estimates.

Safer havens, such as food and drugs, also fell, indicating investors are doubtful any business will fare well in the slumping economy. Kraft Foods slipped 19 cents to $33.21, while Johnson & Johnson declined 17 cents to $55.18. Both were due to report earnings later in the day.

Earlier, the Commerce Department reported business inventories dropped 0.1% in August, the seventh straight monthly decline. At the same time, business sales rose by 0.1%t, but economists caution that goods could stay on the shelf if consumers, shaken by the terror attacks, stay away from stores.

A full report will follow

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