Stocks fell sharply yesterday as Iraq lifted an oil-export ban, undercutting energy shares, while lacklustre news about earnings and the economy pushed the Nasdaq to its twelfth loss in 14 sessions.
With losses deepening in the final trading hour, the Nasdaq composite tumbled 34.61 points to 1,578.48, while the Dow Jones dropped 198.59 points, to 9,808.04, the lowest finish since February 19th. The benchmark Standard & Poor's 500 closed 21.22 points lower to 1,052.21. Trading volume was light ahead of the Fed's decision on interest rates tomorrow.
Oil shares, including Exxon Mobil, fell after Iraq said it would resume daily oil exports, ending a month-long ban on sales to protest Israeli incursions into Palestinian territory. More oil supply can mean lower prices and lower profits for oil companies.
Exxon fell $1.34 to $39.25, and the Philadelphia Stock Exchange oil service index tumbled nearly 5 per cent, the largest drop in six weeks. Hewlett-Packard, trading on the NYSE under the new stock symbol HPQ, rose in the first day of trading since it completed its acquisition of Compaq Computer.
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